Family health insurance explained

How does family health insurance work?

Family health insurance pays for a range of medical treatments, tests, surgery, and medication. It covers everyone named on the policy. When you set up the plan, you decide who you want to include in the cover. And you also choose the type of cover that suits your family best.

There’s just one monthly premium to pay as each person is on the same policy. This makes it easy to keep track of your payments and manage your policy. Children can be insured while they’re still dependent on you. This is usually up until their 18th birthday or until they finish further education.

You'll sometimes only need to pay for the eldest child, with their siblings insured for free. Other features can include adding new babies to the policy for free and receiving a cash payment when a baby is born.

When a family member is unwell, they can see a private GP quickly. A prompt diagnosis is particularly reassuring when young children are ill. If treatment is needed, you can check with your insurance company to see if they can have that treatment privately.

The insurance company will cover the cost of the treatment. In some instances, you may need to pay an excess. An excess is an amount that you pay towards your medical treatment before your insurance picks up the rest of the cost.

You can usually choose when and where to have the treatment which makes it easier to fit around family life. It can also mean that you’re seen much sooner than you would if you or your child had to wait for treatment on the NHS.

What does family health insurance cover?

Family health insurance policies vary, depending on the insurance provider. But most health insurance policies cover:

Private GP consultations

Access to video consultations and 24-hour health advice lines. You can get advice about your child’s health day or night.

Hospital treatment

The insurance covers in-patient and day-patient hospital and consultant fees. In-patient and day-patient diagnostic tests, such as pathology, radiology, and CT, MRI and PET scans are also usually covered in full. Surgical out-patient procedures are also covered. And some insurers cover treatment at home, such as chemotherapy. However, out-patient diagnostic tests are not covered as standard. You’ll need to take out optional extra cover for this. If your child is admitted as an in-patient, the insurer may pay your accommodation costs if you need to stay in the hospital overnight.

Find out more: The difference between in-patient and out-patient cover 

Cancer care

Your family health insurance can cover cancer care and support. This includes early risk assessments, discounted screenings and treatment. Thankfully, cancer in children and young people is relatively uncommon compared to adult cancers. But if the worst happens, you’ll want to make sure your child has access to every possible treatment.  Family health insurance can offer access to a wide range of treatment options, even those not available on the NHS.

Mental health support

You, your partner and your children can get access to early intervention therapies such as CBT, and counselling through talking therapies. You can also sometimes refer yourself or your child directly to a therapist rather than waiting for a GP referral.

Physiotherapy

Health insurance plans usually cover a set number of physiotherapy sessions. With some insurers, you can self-refer to a physiotherapist.  

Optional extras

Many health insurance plans also offer extra options. These include out-patient cover, dental insurance, and sight and hearing tests. You can tailor your plan to the services that suit your family best.

Find out more: What's included in Vitality core cover?

How can I reduce the cost of my family health insurance?

If your quote is not in your family budget, there are ways to reduce the cost of your family's health insurance.

Review the level of cover you need

Find a provider that offers all the cover you’re looking for with their standard plan or core plan. Then you won't need to pay for optional extras.

Increase your excess

The higher your excess, the lower your premium. You can pay towards your treatment by setting your excess at £500 or £1,000. This will make your premiums cheaper than if you had no excess. 

Choose your underwriting

Underwriting is how insurance companies consider your age, medical history, and past claims. They do this before they provide a health insurance quote.

If you choose Full Medical Underwriting, it considers your and your family's full medical history. Including pre-existing conditions. You may be able to get cover for pre-existing conditions, but it will probably cost more.

Moratorium Underwriting won’t cover any conditions you or your family member had in the previous 5 years. Usually, you also need to be free from the condition and its treatment for two years. Then, you can make a claim for that condition. This type of cover can be cheaper because of these exclusions.

Find out more: How to keep your premiums low? 

Family health insurance - things to consider

What level of cover do you need?

Find a provider that offers a high level of cover as a standard and check if that’s suitable for your whole family. Most insurers will allow you to add new family members as they come along. Also, be sure to check if there are any cover limits, as claims can add up if several members of your family need treatment.

Are you getting value for money?

Make sure you understand exactly what level of cover you're getting for your money. Also, find out if there are any costs that you’ll need to pay yourself, such as an excess. Or a shortfall on consultant fees.  

What’s your family’s medical history?

Family members with an existing condition probably won’t get insurance for that condition. But this doesn’t stop them from making a claim for any new condition. There are no exclusions for children who’re covered from birth.

Find out more: Health insurance and pre-existing conditions explained

Take advice  

Speak to a specialist adviser or one of our private health insurance team.