Despite the enormous funding going into the NHS, health insurance is enormously popular. It gives reassurance to millions that treatment would be available promptly if they became ill or injured.

As a private patient, you can choose when treatment will take place and even the specialist who treats you and location of hospital.

Private health cover is for elective, short-term, specialist care with the reasonable expectation that you will be restored to the same or possibly better health than before the treatment. It is not for incurable conditions.

As the Yorkshire Post survey revealed earlier this month, Yorkshire NHS patients still face a postcode lottery as to their treatment. While there are few hurdles for access in Barnsley or Doncaster, case-by-case reviews are far more likely in North Yorkshire. Indeed, almost 3,000 patients there had their case referred to expert panels last year.

Despite the economic downturn, demand for private healthcare has continued this year. The largest provider, Bupa, with 44.8 per cent of the market, says individual – rather than corporate – sales are up 20 per cent in the first three months on the same period in 2007.

Fergus Kee, managing director of Bupa UK Health Insurance, says its research shows that access to clean hospitals is the most important reason for taking out private health care. "MRSA and general hospital hygiene are clearly top concerns."

No waiting, speed of access to specialists and the ability to see the same consultant throughout the treatment were the other top criteria. Bupa was the first private health insurer to establish an approved network of MRI scanners, which now numbers 352.

Access to drugs and treatments not widely available on the NHS also pay their part in taking out such insurance.

When considering which policy is right for you, look particularly at:

Breadth of cover;

Choice (e.g. of consultant and hospital);

Discount for partner/family;

Acceptance of past medical conditions;

Price guarantees for future;

Claims handling;

Value for money.

One of the major complaints about health insurance is that insurers have not met claims in full if someone failed to mention some medical history. Earlier this year the Association of British Insurers, which represents 95 per cent of the industry, set out new guidelines, saying that irrelevant or accidental non-disclosure was no excuse to deny paying claims in full.

If this is carried through, it will restore faith in this key sector and not stop genuine payouts just because of some technicality.

On breadth of policy, consider whether dental, optical and fields like physiotherapy and acupuncture are to be included. Saga, a noted health insurer, will repay up to 75 per cent of dental and optical expenses as well as offsetting some of the cost of therapies. It has no upper age limit and guarantees to accept everyone. Unlike some providers, Saga will not cancel a policy owing to age or the number of claims made.

LHF Healthplan in Leeds includes all these areas although the rates reimbursed vary with the premiums paid. Part of the Simplehealth Group, it is a non-profit making company with no shareholders.

Standard Life offer exclusive plans for the over 55s with no upper age restriction. They also have a no claims discount up to 65 per cent for switching (£250 excess applies).

If published service standards are important, Western Provident Association claims to be the only health insurer to provide them. The WPA was founded in Reading in 1901 and is now located in Taunton.

Tesco is offering 1,000 free Clubcard points when taking out its health insurance before May 28. It covers both inpatient and day patient treatments and associated charges, as well as outpatient surgery, radiotherapy and chemotherapy and cancer treatment for up to one year.

In research last December, Tesco found that 88 per cent of customers saved by changing to their health cover.

Discounted gym membership is a major advantage of some health policies. It's clearly in the interest of an insurer to lower the risk of a claim and accordingly several have negotiated reduced rates with gyms.

Bupa gives one year's complementary membership for new clients at Fitness First gyms – worth £500 – with its Select 1 policy. Prudential offers discounts at Cannons, LA Fitness and Virgin Active which can save a combined £800 a year. Fees are based on the frequency of gym attendance. The same insurer will also reduce premiums based on lifestyle, such as walking or eating fruit and vegetables.

Norwich Union have teamed up with such gyms as Bodysense and Kinetika which ensure discounts of 10-50 per cent.

Whilst it's always sensible to compare quotes, those retiring who have enjoyed company health insurance may be in for a shock.

Usually staff do not pay the premium but just the tax as a benefit but the full new rate – which will not enjoy the company group discount – may be far higher, even up to triple the former rate.

If you are either receiving treatment or likely to require it for an existing condition, the current insurer is still probably the best option as a new firm may not accept liability for that aspect.

If free from treatment after two years, many insurers will accept your application.

It is worth consulting a specialist broker. Not only have they access to a wider range of policies but they can recommend ones most appropriate to your needs.

It may be that a non-comprehensive policy is the most appropriate route.

AXA PPP, for instance, has a broker policy which covers outpatient surgery, inpatient treatment, MRI and PET scans as well as radio and chemotherapy.

Check an insurer's policy regarding charges for older people as you may find a sudden increase on hitting a birthday.

Exeter Friendly Society, which has offered health insurance since 1927, fixes premiums at the age you start although they naturally increase with inflation.

Exeter Friendly allows you to menu-pick for the treatments required with a choice of over 300 hospitals. It will, incidentally, cover for the full cost of outpatient surgery.

For the budget minded, consider the Healthcare Deposit Account offered by the National Deposit Friendly Society.

A fixed annual amount of cover is offered for the same premium for life. For instance, a monthly £50 brings £25,000 medical benefits annually plus £750 dental and optical fee reimbursement.

Whilst such payments may not fully cover the cost, it should go a long way to meeting healthcare expenditure.