Social vs. Private Insurance

Social insurance is a form of public health program which provides protection against various economic risks associated with poor health. Participation in social insurance schemes is typically mandatory in the countries which operate them.

Understanding the differences between social insurance policies and private insurance plans can prove complex. As an agent, it’s important for you to be able to identify whether a client qualifies for social insurance, whether social insurance overlaps with private insurance and if there are any discrepancies between what each policy type actually covers.

private insurance

The basic idea behind social insurance is that it allows for benefits to be available to all. However, social insurance programs are different from private insurance plans in many ways. For example, contributions to social insurance programs are mandatory and taken automatically by the state as a form of tax. With private insurance, the policy holder freely chooses a policy to suit their own personal budget and individual requirements.

Ultimately, private insurance programs are designed to offer greater coverage, and coverage is relevant to the contribution made (for example, a wealthy person with a fully-comprehensive policy would find themselves covered against all eventualities, whereas someone with a basic policy might find themselves refused coverage for certain treatments (such as treatment for medical issues caused by their own personal negligence). In comparison, social insurance programs are designed to cover blanket social adequacy for all patients. Those who can afford to are expected to pay more, while those on low incomes pay less. However, when it comes to selling a policy, the emphasis should always be on the fact that private insurance offers more.

Medicare or Private Insurance: Which is Best?

There are several reasons why private insurance is more beneficial to the consumer. While public programs ensure that everybody has access to basic healthcare, it is arguable that the private sector has many incentives to be more efficient and to offer a greater level of service than Medicare. Here are some of the main selling points you should be highlighting as an agent:

Greater Freedom Of Choice

With private insurance, those who can afford it are given greater choice over how they use healthcare services. Private healthcare means that your clients won’t have to settle for what’s being offered – instead, they can choose when and where to be treated.

Unlimited Healthcare

Public programs are limited by budget, which means that they may have to ration their services. This can result in longer waiting times and lower standards of care. You should emphasize that private healthcare means your client will be treated right away, with the best possible level of service.

No Bureaucracy

Public healthcare bodies tend to get bogged down in government bureaucracy. Explain to your clients that with a private healthcare insurance policy, they won’t need to worry about how your local authority dictates how they should be treated. Instead, the choice is put into their hands.

If you would like more advice on how to highlight the benefits of private insurance over social programs, why not get in get in touch with our team today? We can offer industry-specific insurance sales training to help improve performance and increase revenues.