Health insurers adding fluffy extras to flog expensive policies

By Lana Clements

As health insurance costs are rising, some providers are turning to fluffy gimmicks in an attempt to gloss over spiralling prices. The average annual premium for health insurance now stands at around £898, according to PruHealth.

But in an attempt to make customers think they are getting a good deal for their money, the health insurer has launched a new Vitality wellness programmes offering discounts and benefits with corporate partners. It claims savings can amount to £1,355 a year, meaning the health insurance "pays for itself".

However, customers should be careful not to fall for the tricks that they may not see the full benefit of. "Many want to see immediate benefits and value for money for their premiums even if they don't claim," says PruHealth chief executive Neville Koopowit.

However, this isn't the way customers should shop for a health insurance policy. Instead, focus on the policy limits and cover provided to best suit needs, in the event that a claim is made.

Make sure polices are compared to get the best value polices at the best price. PruHealth allows customers to build up points that can translate into up to 20% off premiums, customers should make sure they will be able to build up the points if taking this into account when looking at price.

After the most suitable policy is found for individual circumstances, look at the more fluffy additional extras, such as gym discounts and vouchers, and then seek to make the best use of these.