Cash plan or PMI?

Because some people may be put off buying private medical insurance (PMI) because of the seemingly high cost, a low cost cash plan may provide a more affordable alternative. Indeed, medical cash plans are sufficiently different from private medical insurance in that some people opt for a cash plan rather than PMI, whilst others have both. Here is how they differ:

• Private medical insurance - this gives you access to private treatment and operations as an alternative to using National Health Service facilities. Although there is a wide range of different levels of cover available, premiums can sometimes be fairly expensive;
• Cash plans - in return for a relatively modest monthly premium, members of cash plans receive a cash payment towards the cost of a range of everyday health treatments. The payments therefore complement medical services provided either by the NHS or privately. Cash payments are typically made if you need to go to hospital, see a specialist, have a baby, or need a complementary therapy. Payments are similarly made towards dental costs and visits to the optician.
  
  Unlike private medical insurance, membership of a health cash plan can be gained without the need for a medical examination; dental, optical and some complementary therapies are included; dependent children can usually be included free of charge under the parents' membership; and premiums are not always age-related.