An introduction to the Healthcare Deposit Account
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About us
National Deposit was formed in 1868, to help people save for healthcare. Long before the National Health Service (NHS) was born, National Deposit and other Friendly Societies were the main providers of healthcare. In fact, the government saw National Deposit as having such good skills that it asked us and other Friendly Societies to help it run state healthcare from 1912 and go on to help set up the National Health Service in 1948. We are a Friendly Society and a mutual, so we have no shareholders expecting to have a share of our profit. Our ultimate purpose is to provide benefits for our members, so we pride ourselves on the high standard of service we offer. We now have 140 years’ experience in caring for our members and everyone who opens a Healthcare Deposit Account becomes a member of National Deposit.
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Healthcare Deposit Account
This brochure provides an overview of the Healthcare Deposit Account from National Deposit. For more detailed information, please read the ‘Your policy explained’ document before you apply.
Private medical insurance with a difference
Do you resent the idea of paying premiums and getting nothing back? Do you want choice and control over your cover for the rest of your life? With other healthcare policies you lose all your payments whether you claim or not. But with our Healthcare Deposit Account half of each monthly premium goes into your own personal deposit account – and the money in your account is always yours. Some of the other key benefits you can expect from our scheme include: • Your choice of monthly premium, from as little as £20 a month. • Fixed monthly premiums for life, so we’ll never increase them, you’ll just pay a bit more towards each of your claims as you get older. • No need to renew your policy each year – it continues for as long as you want it to. • Comprehensive medical cover including private consultations, surgery, recognised alternative therapies, cancer and heart treatment. • Dental and optical cover. • Cash payments for an overnight stay in an NHS hospital. • An unrestricted choice of private hospitals and treatment locations, as well as the option to use the NHS. • Available to UK citizens up to age 68.
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How it works
• You select your monthly premium, based on how much cover you need, your age and who else is included on your policy when you join. • When you pay your monthly premiums, half goes towards the cost of running the scheme and the other half goes into your own personal deposit account. • If you need to make a claim, your personal deposit account will pay a set percentage of the cost. We’ll always pay the majority share. • The more money you have in your personal deposit account, the more of your chosen level of cover you’ll be able to use. • You can take the early years top-up option for just £5 a month and you’ll have an additional £20,000 of medical cover to call on in the first five years, if you don’t have enough money in your deposit account to pay your share of a claim. • You can boost your personal deposit account balance at any time by paying in extra money, which will increase the amount you can claim in the future from your chosen level of cover. • You can also withdraw money from your personal deposit account, but this will lower your balance and is likely to reduce the amount you can claim. • After the first five years you will get an annual loyalty reward, which we pay directly into your personal deposit account. Please note: The amount you can claim depends on: • The level of cover you’ve chosen. • How much you have in your personal deposit account. • If you have taken the early years top-up option.
£ monthly premium
50% 50%
Healthcare Deposit Account scheme
Your personal deposit account
Majority share
Minority share
£ claim payment
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Healthcare Deposit Account
Choose the type of account you want
Before you choose your monthly premium, you first need to decide on the type of account you need based on your age and who else you’d like to include on your policy. The options and joining ages are: • Individual if you apply before you’re 69. • Couple if you apply between 18 and 68. • Individual+children if you apply between 18 and 68. • Couple+children if you apply between 18 and 68. For accounts with children, you can include a maximum of five living with you. They will stay on your account until they reach 21 and they’ll then be offered their own Individual account. If they are the only child on your account we’ll then move you to an Individual or Couple account.
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Choose how much healthcare cover you want
You’ll pay your monthly premiums by Direct Debit. This amount will depend on the type of account you choose, your age when you join and the level of healthcare cover you want: • The maximum for all accounts at whatever age you join is £200 a month.
Minimum monthly payments for each account type Your age
Individual under 50 50 - 68 £20 £50 Couple £40 £80 Individual+children £40 £80 Couple+children £50 £120
Please choose the level of cover that suits you from the table below.
Your fixed monthly premium £20 £30 £40 £50 £60 £70 £80 £90 £100 £110 £120 £130 £140 £150 £160 £170 £180 £190 £200
Your level of cover each year
Medical cover Dental & optical cover NHS hospital stay payments
£10,000 £15,000 £20,000 £25,000 £30,000 £35,000 £40,000 £45,000 £50,000 £55,000 £60,000 £65,000 £70,000 £75,000 £80,000 £85,000 £90,000 £95,000 £100,000
£300 £450 £600 £750 £900 £1,050 £1,200 £1,350 £1,500 £1,650 £1,800 £1,950 £2,100 £2,250 £2,400 £2,550 £2,700 £2,850 £3,000
£200 = £20 a night £300 = £30 a night £400 = £40 a night £500 = £50 a night £600 = £60 a night £700 = £70 a night £800 = £80 a night £900 = £90 a night £1,000 = £100 a night £1,100 = £110 a night £1,200 = £120 a night £1,300 = £130 a night £1,400 = £140 a night £1,500 = £150 a night £1,600 = £160 a night £1,700 = £170 a night £1,800 = £180 a night £1,900 = £190 a night £2,000 = £200 a night
Please note: • These are the maximum levels of cover available each year, but the amount you can claim will also depend on your deposit account balance. • Individual accounts can only make one optical claim every other year. Other accounts can make one optical claim per account each year. • You can claim a maximum of 10 NHS hospital overnight stays each year per account.
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Healthcare Deposit Account
Work out how much you can claim
The amount you can claim depends on: • How much cover you have chosen • Your own share of each claim • How much money you have in your personal deposit account • Whether you have opted for the early years top-up cover The more money you have in your personal deposit account, the more of your chosen level of cover you’ll be able to claim. You can make additional deposits at any time for use towards future claims. In the first five years, you can opt to pay an additional early years top-up fee of £5 a month. This will give you an extra £20,000 of medical cover if you don’t have enough money in your deposit account to meet your share of a claim. It will end after the first five years or when it runs out, whichever is sooner. At this point you should ensure your personal deposit account balance is enough to cover your own share of any claims you think you might have to make.
Your set share of a claim
For each claim you make you’ll pay a share of the cost from your personal deposit account. Your own share is a set percentage that’s based on your age and account type. As your age increases, you’ll have peace of mind that your monthly premium will stay the same – you’ll just pay a greater share of each claim:
% of claim paid by your personal deposit account Your age
Individual Under 50 50-64 65+ 10% 10% 25% Couple 20% 25% 40% Individual+children 20% 25% 40% Couple+children 25% 30% 45%
Tip: To find out how much you can claim simply divide your personal deposit account balance by your own share. E.g. If Ms R has a balance of £200 in her personal deposit account, she divides this by her own share, which is 10%. £200 ÷ 10% = £2,000 So she can claim a maximum of £2,000. NB: The maximum you can claim will depend on your chosen level of cover.
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What’s covered and what’s not
This account is intended to cover the cost of private medical treatment for unforeseen medical conditions you develop after you join. Below is a brief summary of what is and isn’t included in your cover. Please see pages 12-20 in the ‘Your policy explained’ document for full details.
What’s covered
Medical cover • • • • • • • • • • Surgical operations Consultations Physiotherapy Cancer treatment Heart surgery Diagnostic investigation Acupuncture Homeopathy Chiropody Ambulance fees
What’s not covered
• Any condition you had before you joined, unless we knew about it when you joined and agreed to cover it OR you opted for moratorium cover and have had no symptoms for at least two years during the policy • Cosmetic treatments • Dental and optical claims in the first six months of your policy • Dental check-ups • Eye tests • GP charges • HIV or AIDS related conditions • Laser eye treatment in the first twenty-four months of your policy • Long-term or chronic conditions • Out-patient drugs and dressings • Overseas treatment • Pregnancy or fertilityrelated treatments • Surgical or medical appliances
Dental cover • Bridges • Crowns • Dentures • Fillings Optical cover • Laser eye treatment • New contact lenses • New glasses • Repairs • Prescription sunglasses NHS hospital payments • Up to 10 overnight stays
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Healthcare Deposit Account
How your choice of application affects your cover
You have a choice of two application forms, because we offer two different ways of dealing with any past and current health problems when you first join. These are called pre-existing conditions. We also deal with new health problems caused by a pre-existing condition in the same way. Whichever option you choose, some medical problems will always be excluded from cover – you’ll find more details in the ‘Your policy explained’ document. •
Option 1 - The shorter application for Moratorium cover
This is the easiest and most common way of applying for private medical insurance, especially for people who are generally well and have no pre-existing conditions. You don’t need to give any details of your medical history but if you have had signs of, or experienced any symptoms in the past five years, the condition they relate to will not be covered for at least the first two years of your policy. If you have no more symptoms in the first two-year period, you will then be covered for the pre-existing condition from year 3 onwards. If you do have more symptoms, then the two-year symptom-free period will start again from the date of your last consultation or treatment.
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Option 2 - The longer application using Full Medical underwriting
This option asks you to tell us your full medical history when you join and means you can be sure from the start if you are covered for any pre-existing conditions. If we are not able to cover a pre-existing condition, either for a fixed period or indefinitely, we will list it on your personal policy schedule.
Here’s an example
Mr B has had a painful knee joint on and off. He is about to open a Healthcare Deposit Account. If he chooses the shorter application for Moratorium cover Mr B won’t need to mention the knee problem on his application form. If he later claims for treatment for his knee, we will ask his doctor for the date when the problem started. If this was within five years before starting his Healthcare Deposit Account, Mr B’s knee condition won’t be covered during his first two years of joining. And if the problem returns during this time, there will need to be another two-year period when Mr B doesn’t have any symptoms for his knee condition before it can be covered. If he chooses the longer application using Full Medical underwriting Mr B will include the problem with his knee on his application form. We will consider how severe the condition is, and perhaps get expert medical advice. We may be able to include it on his cover. But if it seems like the problem is likely to come back, we may have to tell Mr B that we can’t cover any problems relating to his knee joint, at least until enough time has passed for us to be sure that this knee problem is very unlikely to come back.
For more information on your choice of application please see page 12 in the ‘Your policy explained’ document.
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We’re here to help
Private Healthcare is the most expensive it has ever been, but with our Healthcare Deposit Account you’ll be safe in the knowledge that, as long as your personal deposit account can meet the cost of your own share, we will always pay the majority of your claim and your monthly premium will not increase. Our experienced customer support team will be able to help you with any aspect of your account. And when you do need to claim we’ll be on hand to help every step of the way, from filling in the paperwork to helping you find a suitable surgeon, specialist or other provider.
Next steps
Thank you for taking the time to read this booklet. If you’re interested in taking out a Healthcare Deposit Account: • • • Please read the ‘Your policy explained’ document for full details. Decide which type of account you’d like and select a monthly premium based on the level of cover you want. Complete your preferred application form and return it in the prepaid envelope provided.
If you have any questions call us on
0800 195 9245
(8am-6pm weekdays, calls may be recorded) • • email enquiries@nationaldeposit.co.uk or alternatively, please contact your Healthcare Intermediary.
Did you know we also offer a Tax-Free Savings Plan, Investment ISA, With-Profits Bond and 50+ Life Cover? To find out more visit us at www.nationaldeposit.co.uk or call us on the number above.
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Healthcare Deposit Account
Other products available
Savings & Investments • Tax-Free Savings Plan • Investment ISA • With-Profits Bond Health & Life Cover • 50+ Life Plan • Income Protection
To request a copy in Braille, large print or audio please call us on 0800
(8am-6pm weekdays).
National Deposit Friendly Society. Registered Office: 4-5 Worcester Road, Clifton, Bristol BS8 3JL. Tel: 0117 973 9003 Fax: 0117 980 9358 Email: enquiries@nationaldeposit.co.uk www.nationaldeposit.co.uk Incorporated and Registered Friendly Society No. 369F. Authorised and regulated by the Financial Services Authority. Registration No. 110008. Calls may be recorded.
195 9245
06/08