How to Reduce Your Health Insurance Payments

Health Insurance

Reduce Your Health Insurance Payments

Here are some measures you can take to reduce your health insurance payments whilst maintaining a satisfactory level of cover:

  • Try to keep your insurance claims to a minimum. Health insurers who with lower claims will pay lower premiums.
  • Think about whether or not you should claim. If your health insurance claim is small you may be paying for it in the long term with a premium increase.
  • Find out if your employer provides medical cover. Check with your manager or personnel representative and, if it doesn’t, then you might be entitled to discounts that have been negotiated with health insurance providers.
  • Find out if your partner has health insurance. If they do then it’s possible that you might be able to be added to the cover for a charge – which is likely to be cheaper than if you paid the premiums individually.
  • Check whether or not you need the level of cover that you’re paying. If you got rid of some aspects of the policy, how would that reduce the premium?
  • Make sure you are taking advantage of any discounts you are entitled to. Health insurers reward lower claimants and new customers with discounts.
  • Find out whether you’re entitled to discounts from companies that provide other insurance to you (eg, car insurance). If they don’t sell health insurance, they may have relationships with other companies which can provide you with savings on different types of health insurances.
  • Maintain a good credit rating because financial information is shared between companies and your credit score could be factored into your premium.
  • Don’t be afraid to shop around for the best deal. Health insurance is a competitive market and the best premiums are often awarded to new customers rather than loyal ones.

Business Property Relief

To qualify for Business Property Relief, the transferor, or the deceased, must have owned the property for at least two years. However, this rule can be relaxed where the asset was acquired on a death – in particular on the death of a husband or wife.

The relief does not apply to businesses that consist wholly, or mainly, of dealing in securities, stocks or shares, land or buildings, or making or holding investments and is only at a rate of 50% where the transfer is of a controlling shareholding in a listed company.

Information about National Insurance Contributions

NIC for Company Directors

Because company directors are often paid irregularly, they are assessed on an annual basis (not weekly or monthly) which takes into account their total earnings from the start of the tax year.

Employee National Insurance Contributions

Employee NIC is not deducted from the employee’s pay before calculating income tax. Employer contributions are deducted from employer’s profits for tax purposes.

Upper Accruals Point

The main purpose of the Upper Accruals Point (currently £770) is that it establishes the upper level of earnings for S2P calculations and contracting-out rebates.

Employed and Self-Employed

If income/profits from self-employment is more than£7,956, then Class 1, Class 2 and Class 4 apply. Otherwise only Class 1 and Class 4 apply.

Class 1A Benefit In Kind

The calculation for Class 1A benefit in kind = 13.8%

Class 4 National Insurance Contributions

Class 4 NICs are collected under self-assessment twice a year.

Entitlements from Class 2 Contributions

Only class 2 contributions give entitlement to contributory state benefits such as the basic pension but not S2P.

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