Reducing the cost of Private Medical Insurance

Private medical insurance (PMI) - also known as health insurance - has traditionally been seen as a luxury only the rich can afford.

However, there are many affordable policies now available, and numerous ways in which the cost of private medical cover can be brought down, such as:

• Choose the most basic policy – just make sure the cover isn’t too limited for what you want.
• Take a bigger excess – the first part of any claim you pay.
• Choose a 'shared responsibility' plan. This means you're liable for the first percentage of any claim and the insurer the remainder. An upper limit is set on the amount you would be expected to pay in any one year.
• Limit the number of hospitals you can receive treatment at.
• Choose a plan that will only pay out if the NHS waiting list is longer than a certain length –  typically six weeks.
• Examine the options and ask a specialist adviser to give you quotes.

Budget plans

Several health insurers have launched initiatives specifically designed to keep premiums as low as possible by bringing out budget versions of their policies, making health insurance affordable for a larger number of people.

As the name suggests, these only cover the basics. They all cover in-patient and day-patient treatment, and some offer limited out-patient treatment.

Whether diagnostic tests and extras such as complementary medicine and cash for overnight stays in an NHS hospital are covered depends on the plan. Generally, they will exclude certain treatments and private hospitals.  

Others keep costs down by limiting the number of hospitals you can use or only offering treatment when there is, for example, an NHS waiting list of six weeks or more.

The next level up is a standard plan which still limits some treatments followed by the most expensive option – comprehensive plans. Naturally, PMI providers use different names for these three main levels but once you read the list of what is and isn’t covered, it’s easy to work out which is which.

Compare prices

The level of protection you need will largely depend on your individual circumstances. If you're unsure, you should discuss your options with an independent specialist adviser. You can find the cover to suit you – at the lowest possible price –  using the form below.