At the moment, some people don t buy insurance because it s too difficult to understand whether they want it at all and, if so, which policy, says Tim Roberson. Better information could stimulate demand for insurance and could increase the size of the market. We would hope that more informed consumers would be more confident purchasers. Private medical insurance pays for treatment of short-term acute conditions. It does not usually cover routine health, dental and eye checks.
Some policies pay for additional benefits such as home nursing or complementary therapies.
Replacement income is normally paid up until retirement age. PHI is increasingly known as Income Protection Insurance. Critical illness insurance or cover pays a lump sum in the event of a serious illness such as cancer. It can be used to pay for medical care, to repay a mortgage or to provide a replacement income. Some policies are stand-alone, others are linked to life insurance or mortgage protection policies.