Should You Choose Self-Pay or Health Insurance for Your Child?

Should You Choose Self-Pay or Health Insurance for Your Child?

Written by Alison Lurie, In finance, Published On
August 14, 2023
, 296 Views

You want to get health insurance for your child. You have decided that the NHS is not working for you and you are worried about the growing waiting lists and what might happen if your child gets sick. Many families are choosing to go down the road of accessing private healthcare in order to protect their children.

Upon investigating, you might have discovered that self-pay is also an option with private healthcare. You can choose to pay the bills yourself rather than using a health insurance policy. Is this a good option? Should you stick to getting a policy as you planned? Here are some things you should think about to make the right decision.

What To Choose: Self-Pay or Health Insurance for Your Child?

Assess Your Savings

You might be in a strong financial position. In particular, you have a lot of savings and have been careful with your money over the years. Consequently, you can comfortably pay for a private healthcare bill. This might be a route you are happy to go down if your child gets sick and needs treatment.

But, you may also be in a position where your savings are moderate. In other words, you have some money in your bank account but are still saving for a rainy day. Private healthcare would wipe you back to zero. This is not ideal if you are saving for a new house or want to go on holiday for the family. What’s more, you might feel that you need that money for security.

Therefore, before rushing into a decision, assess your savings. Consider your future plans and if you are financially stable. Think about whether you would be happy to use your savings for private healthcare. If the health answer is yes, you can choose self-pay. Child health insurance is better if you do not want to touch your savings. You can spread out the cost and still enjoy the same healthcare. It is just a much more manageable way to pay.

Consider the Risk

Most people hope that their child does not get sick anytime in the future. Compared to the older population, younger people are statistically less likely to get a serious condition. But, this does not mean that it is impossible. While you might not like to consider this situation, you should be prepared so that you can enjoy peace of mind. In other words, you want to have a plan if your child becomes sick and they need medical help.

Indeed, the waiting time is much shorter with private healthcare and you have access to more treatment options. But, you should be aware that self-pay will make this route expensive. You are taking a risk if you do not feel financially stable. This is when families prefer to take out a health insurance policy. They know that if their child gets sick, money is not going to be a hindrance.

Understand the Investment

Parents always want to ensure they are investing in their child’s future and doing things to help them succeed in life. The same can be said about getting health insurance at a young age. When you do this, it is going to be cheaper to pay. What’s more, it ensures that your child starts with a good history. If they do not use their policy for several years, this is a great thing. It means that in the future, they can be given no-claims bonuses and special deals.

Consequently, think about a health insurance policy as a good investment for your child. Of course, you are protecting their health. But, you are also starting them on a good foot with insurance companies. When they are older, they might be able to get these bonuses, which benefit them financially. What’s more, they may choose to continue with their own policy since they understand this type of investment and the benefits it can bring.

Most People Choose a Health Insurance Policy

Of course, how you want to pay for private healthcare is completely your decision. But, if you are wondering what many other parents choose, they will most likely select a health insurance policy. This is the most popular way for people of any age to gain access to private healthcare. Since you are able to spread out the payments, this is manageable for many people, including those with varying salaries. You avoid the huge pay out that can rob you of your family savings you work hard for. Getting a quote for health insurance can enable you to see what protection your family will gain.

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