Private health insurance can offer a valuable safety net if you want access to medical tests or treatment more quickly than you may be able to secure through the NHS. It can also mean a private room if you’re admitted to hospital, and the option to choose the specialist or consultant for treatment.
There were a record 238,000 admissions to private hospitals in the first three months of 2024, according to the latest data from the Private Health Information Network (PHIN). That’s 3% higher than the previous record quarter for admissions seen in Q1 2023. the previous year, with more people seeking to sidestep long NHS waiting lists.
Of these admissions 168,000 (70%) were under private health insurance plans, with the remainder paying for the treatment out of their own pocket (known as self-paying).
With a range of health insurance providers and various cover levels available, it can be difficult to know which policy could be right for you.
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Our pick of the best private health companies of 2024
We’ve compiled our pick of the best private health insurance companies based on research by our life and health insurance partner LifeSearch (November2024).
We considered two scenarios, one for a single person, aged 30, looking for a high level of cover, and the second for a family of four looking for a more budget-friendly option. All policies listed come with a £100 excess – the amount that must be paid toward any successful claim. Our full methodology is outlined below.
Scenario one:single non-smoker, aged 30, lives in London, looking for comprehensive PMI cover.
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Best For Low Premium
Bupa: Bupa By You
Monthly premium
£87.03
Cancer cover
Full
Dental cover
75% of treatment costs up to £700 per year
Why We Picked It
This policy offers high levels of cover for a competitive monthly premium. All in-patient and out-patient costs are covered in full (minus the £100 excess). Full cover for cancer treatment is included, as is out-patient services such as physio, mental health and wellbeing therapies. Policyholders have a choice of private hospitals across the country, including in central London.
Dental cover (Dental 20) is included as standard in the monthly premium quoted above, but it can be removed by the policyholder to reduce the cost to £75.03. The cover includes check-ups and routine procedures up to £150 per year, then covers 75% of other necessary treatment up to a maximum of £700 per year. Emergency treatment is covered up to £600 per year.
Pros & Cons
- Competitive premium
- Full cancer cover
- Dental cover can be removed to reduce premium
- Dental treatment has 4-week waiting period
- Dental cover capped at 75% of treatment costs
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Aviva: Healthier Solutions
Monthly premium
£113.04
Cancer cover
Full
Dental cover
Up to £250 per year (£50 excess)
Why We Picked It
Aviva’s policy offers full cover for in and out-patient care, including diagnostics, consultant fees, surgery and treatment. Full cover is included for cancer diagnosis and treatment. The standard excess is £100.
There is dental cover up to £250 per year and optical benefit (for sight tests and glasses) up to £150 per year – both with a lower £50 excess. Claiming for dental and optical treatment won’t affect your no claims record.
Policyholders can choose from an extended list of private hospitals, although some London private hospitals may not be included.
There is cover for physiotherapy, osteopathy, chiropractic treatment and complementary therapies, such as acupuncture.
Pros & Cons
- Full cancer cover
- Dental and optical treatment won’t affect no claims
- Lower £50 excess on dental claims (standard excess is £100)
- Dental cover limited to £250 per year
- Higher premium than competitors
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best for mental health cover
The Exeter: Health+
Monthly premium
£116.71
Cancer cover
Full
Dental cover
None
Why We Picked It
With full cover for in and out-patient care, including diagnostics, consultant fees, surgery and treatment, this policy is a solid option at a competitive price, albeit higher than some competitors. There is full cover for cancer diagnosis and treatment pllus cover for physiotherapy, osteopathy, chiropractic treatment and complementary therapies, such as acupuncture. However, there is no dental or optical cover.
Policyholders can choose from an extended list of private hospitals, although some London private hospitals may not be included.
Pros & Cons
- More comprehensive mental health cover than some plans
- Full cancer cover
- No dental cover
- Higher premium than competitors
Scenario two: non-smoking family, couple aged 42, plus two children under 16. Live in Leeds (LS8). One adult has high blood pressure (pre-existing condition, not covered under the policy). No family history of any conditions. Looking for budget cover options (willing to exclude cancer cover or restrict out-patient benefits, for example), with a maximum excess of £100 per person per claim.
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BEST FOR LOW PREMIUM
Bupa: Bupa By You
Monthly premium
£66.32 (family cover)
Cancer Cover
None
Dental cover
None
Why We Picked It
This policy offers budget family health insurance at a competitive cost. It was the cheapest premium we found for our search criteria. It includes cover for in-patient treatment, excluding cancer treatment. It includes in-patient treatment for physiotherapy and psychiatric treatment.
Out-patient cover is limited and restricted to consultations and minor diagnostic tests, scans, and some therapies, including mental health therapy. There is no dental cover.
Pros & Cons
- Competitive premium
- No cover for cancer
- No dental cover
- Limited out-patient cover
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BEST FOR COVERAGE
The Exeter: Health+
Monthly premium
£94.28
Cancer Cover
Full
Dental cover
None
Why We Picked It
While Exeter’s Health+ plan is more expensive than some competitors, the policy covers all in-patient treatment and care in full, including all treatment related to cancer. But the main downside is this policy has no out-patient cover.
The only extra cover provided is a private ambulance (covered in full on medical necessity), nursing at home (covered in full following eligible in-patient or day-patient treatment on specialist recommendation) and an NHS cash benefit of £150 per night if you need to spend time in an NHS hospital, up to a maximum payout of 30 nights per person.
There is also parent accommodation provided (accommodation for one parent when staying with a child under 17 on the policy receiving in-patient treatment). There is no dental cover included.
Pros & Cons
- Parental accommodation included
- Cancer cover included
- NHS cash benefit for hospital stays
- No out-patient cover
- No dental cover
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Aviva: Healthier Solutions
Monthly premium
£101.38
Cancer cover
Full
Dental cover
None
Why We Picked It
This policy covers all in-patient treatment, including cancer treatment and care, in full, and it includes a range of out-patient benefits and cover, including physiotherapy and diagnostic scans, so it is a more comprehensive policy than some in the list. But the premium is higher.
The policy includes full cover for a private ambulance, if needed, and nursing at home following in-patient or out-patient treatment (if recommended by a specialist). There is an NHS cash benefit of £100 per night up to a maximum of 30 nights, for any NHS hospital stays. Parental accommodation is included when staying with a child on the policy (up to age 15).
There is no dental cover or benefits.
Pros & Cons
- In-patient and out-patient claims covered in full
- Includes cancer treatment
- Parental accommodation included
- NHS cash benefit for hospital stays
- Higher premium than competitors
- No dental cover
What is private health insurance?
Private health insurance/private medical insurance (PMI) is an insurance policy, usually arranged for 12 months (in the same way as car insurance), that covers the cost of private medical care and treatment.
The benefits and levels of cover vary by policy, but typically private medical insurance will cover the cost of tests, consultants fees, anaesthetists, surgery, medicines and other treatments.
If you need to go into hospital, either as a day patient or overnight, you’ll also usually be covered for this, plus any meals. Among the appeal of private health insurance is the ability to be able to choose your appointment times, plus see the doctors and use the hospitals of your choice.
In some cases, private health insurance will cover drugs and treatment that may not be available on the NHS. Some policies with higher levels of cover might also include outpatient services, such as physiotherapy and orthopaedics, mental health therapies and alternative or complementary therapies, such as acupuncture.
You can get private medical insurance for individuals, for couples and for families, if you have dependent children.
Private health insurance is sometimes offered to employees as a work benefit. In this instance you become a member of the group or company’s private medical insurance plan, and you can access the benefits under the scheme as long as you’re an employee of the company.
“Private health insurance can offer valuable peace of mind that you’ll be able to access the diagnosis and treatment you need at the time you need it, without a long wait or high cost. But with a complex array of policies on the market and premiums ranging widely, it can pay to compare the options available”
– Kevin Pratt, editor, Forbes Advisor
How does private health insurance work?
With private health insurance you pay a monthly or annual premium for cover. You can then use private medical services for the diagnosis and treatment of any new medical conditions, and the insurer helps towards the bill.
Having private medical insurance doesn’t mean you can’t access services and treatment through the NHS. In fact, in most cases you’ll need a GP referral before you can access the treatment through your private health cover. However, this kind of cover means you can opt to avoid NHS waiting lists for tests, treatment or surgery. This is particularly the case for non-urgent care.
You might have to pay upfront for the cost of any private medical tests, consultant fees or hospital treatment and claim it back. Or in some cases the insurer will liaise with the hospital or healthcare provider to pay your costs.
There will usually be an excess to pay towards any claim, subject to the terms of your policy. This might range from around £100 to £500, for example. As a general rule, the higher the excess, the lower the premium.
Insurers usually offer varying levels of cover, with different limits and choices for treatment, plus terms and exclusions. Higher levels of cover will cost more.
Some policies put a limit on how much they’ll pay out for a particular condition or treatment, or limits might sometimes be applied on payouts over the course of a year, for example. It’s vital to read the small print of your policy before signing up to understand the cover and its limitations.
What types of private medical insurance are there?
There are a range of different types or levels of private medical cover. It’s important to understand what cover you’re getting for your premium to avoid any issues if and when you need to claim:
Comprehensive private medical insurance
The most comprehensive policies will cover you for private GP appointments, referrals to specialists and consultants, diagnostic tests and full private treatment if needed, including hospital stays as well as out-patient treatment and care.
This type of cover will usually cost the most of any type of PMI but, as it says in the name, the cover is also the most comprehensive.
You’ll usually have two options for full private medical cover:
- medically underwritten cover, this means declaring any pre-existing conditions, for which you won’t then be covered. However, this usually means you’ll know exactly what you are covered for and any claims will be processed more quickly
- moratorium underwritingmeans you don’t need to answer lots of medical questions or declare pre-existing conditions when you take out cover. But you won’t usually be covered for any pre-existing conditions you’ve had in the preceding five years until you’ve been free from medication, treatment or tests relating to it for two years. This type of cover is likely to cost more than a fully medically underwritten policy.
Diagnostic-only cover
Then there are policies that offer cover just for diagnostics. This means you’d be covered for the cost of diagnostic tests and consultations with specialists to find the cause of a medical problem – but crucially there is no cover for the actual treatment.
Limited or specific cover
Other policies come with specific and more limited cover. For example, some providers offer policies that just cover cancer diagnostics and treatment. In other cases a policy may offer cover if an NHS waiting time is going to be more than three months, for example.
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How are private medical insurance premiums calculated?
There are a number of factors insurers consider when calculating your premium for private health cover. But your gender isn’t one of them. That’s because, due to a legal ruling in the European Court of Justice, insurers can’t take the gender of customers into account when pricing insurance.
Insurers will consider the following when calculate premiums for fully underwritten policies:
- your age:the younger you are the less likely you’ll need to claim on the policy so premiums are likely to be lower
- where you live:private hospitals and private medical care tends to cost more in certain regions, such as in London and the south east of England
- whether you smoke or vape:use of nicotine products is seen as a risk factor and you’re likely to pay more compared to non-smokers
- medical history and lifestyle(and family health history):insurers will want to know about any pre-existing conditions, plus your state of health now, in terms of your body mass index (BMI) and how much you exercise, among other lifestyle factors. If there are instances in your family of serious illnesses, such as cancer, before the age of 60, this can also be flagged as a higher risk
- the level of insurance cover:the more comprehensive the insurance plan, with higher levels of cover, the more you’ll pay in premiums. Similarly, if you want a lower excess to pay in the event of a claim (the excess is the first part of any insurance claim which you would have to cover yourself) then this will also mean a higher premium
- who is covered:individual cover will be cheaper than covering a couple or family.
With most private health insurance your premiums will be reviewable each year, and are likely to rise on a regular basis. This isn’t just because you’re getting older and your risk of claiming is increasing, but also due to inflation and general increases in costs in the healthcare sector, which pushes up the cost of claims each year.
Pro Tip
Moratorium underwriting involves fewer questions about your health and conditions. But premiums are higher and you won’t be covered for pre-existing conditions until you’ve been free of treatment, tests or follow-ups relating to the condition for at least two years
What does private health insurance cover?
Private health policies vary widely between providers and for different levels of cover. Always check exactly what a policy is offering, as well as looking at payout limits and any exclusions.
By way of a guide most comprehensive private health insurance policies will usually cover you for the following as standard:
- consultation with a private GP (this may be over the phone or online)
- in-patient treatment, including diagnostic tests, consultant fees and surgery
- private hospital stays, including accommodation, nursing care and meals
- medications, drugs, bandages and dressings
- out-patient care, such as follow up tests and scans and consultant fees.
With some private medical insurance you’ll also have cover for out-patient therapies, such as physiotherapy, mental health therapies, and complementary medicine and therapies. In other cases you may be able to add on this cover for an additional premium if you want it included.
What isn’t covered under private health insurance?
The following is not typically covered under private health insurance:
- pregnancy and childbirth (some policies include treatment due to complications of pregnancy or childbirth)
- chronic, long-term conditions, such as diabetes, multiple sclerosis, and asthma
- pre-existing medical conditions
- cosmetic surgery
- accident and emergency (treatment following admission via NHS or private A&E)
- injuries sustained due to high risk sports and activities
- self-inflicted injuries or suicide attempt
- treatment that arises due to excess alcohol intake, drug or substance abuse.
How much does private health insurance cost?
How much you’ll pay in monthly premiums for private health insurance will depend on a range of factors, most crucially your age and state of health. Younger people and those with no previous health conditions or illnesses, and with a healthy lifestyle (healthy BMI and non smokers, for example) are likely to have lower premiums compared to less healthy counterparts.
Our research (see above) found, for example, that for a healthy, non-smoking 30-year old, fully medically underwritten cover would cost from around £87 a month.
Bear in mind premiums are likely to rise significantly for older applicants. Those at or over retirement age, for example, may need to pay hundreds or even thousands of pounds a year for cover. And unlike most types ofterm life insurancewhere premiums are fixed from the outset and will remain the same for the term of the policy, premiums for medical cover can rise annually even if you’ve not made a claim.
Read more about How Much Does Health Insurance Cost?
Do I need private medical insurance?
Whether or not you want private medical insurance will depend on more than affordability. It may also come down to your own personal view about private healthcare versus the NHS – an ethical dilemma for some.
However, if you have concerns about long NHS waiting lists, or you want the option to have greater control over your own healthcare and choices about treatment, plus a private room if you require an operation, then private health insurance can offer a solution – albeit for a fee.
NHS waiting times are often in the news. Since the Covid-19 pandemic the number of people waiting months, and even years, for routine and non-urgent operations, such as cataracts and hip and knee replacements has increased dramatically.
While the number of people waiting 52 weeks or longer for a procedure has fallen since its peak during the pandemic, when it reached almost 437,000 (March 2021), it still remains high at more than 300,000 people (March 2024), as the graph below shows.
Some employers offer group health insurance plans as a company perk, so if you have this option through your workplace you may not feel it is necessary to buy separate standalone cover. But remember that your cover through work is only accessible while you’re an employee of the company.
If you want cover for any medical issues that could arise over time, or you want to remove the anxiety of long waiting times for diagnosis, consultation and treatment, then private health insurance can offer peace of mind.
The chart below shows the most common private hospital procedures in 2023 (compared to 2022), according to the PHIN.
Can I get private health insurance if I have a pre-existing condition?
You can still get private health insurance if you have a pre-existing medical condition. But it is important to be aware that you won’t be covered for this condition.
With moratorium underwriting (outlined above) you could get a policy that may cover your pre-existing condition in the future, provided you’ve been free from medication, treatment or any related tests or consultations relating to that condition for at least two consecutive years.
Depending on your age and your medical condition, private medical cover can be expensive. If you have pre-existing conditions it may be worthwhile speaking to an insurance broker specialising in medical insurance to find a policy that would be best for your specific needs.
Ensure your policy aligns with your specific healthcare needs. This means thoroughly evaluating what types of treatments and conditions the policy covers, including any exclusions for pre-existing conditions, and considering whether you might need additional options like mental health support, out-patient care, or access to specific specialists.
– Chris Mooney, private medical insurance expert, LifeSearch
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What are the alternatives to private health insurance?
Private health insurance can be expensive, particularly for older people, but there are alternatives if you still want to access private medical services and care.
Pick and mix style health insurance: some private medical insurance policies allow you to exclude some parts of the cover, or exclude certain conditions and illnesses for example, as a way of cutting the premium cost.
For example, some policies won’t include cancer cover, as a way of reducing costs. If you want private medical insurance but you’re on a tight budget, speak to an insurance broker, such as LifeSearch, who can help tailor a policy to your needs and bank balance.
Self pay: you don’t have to have a private medical insurance policy to use private hospitals and private healthcare. You can self-fund any treatment, provided you can pay the bills in full. Three in 10 (31%) private hospital admissions in 2023 were under self-paying arrangements, according to the PHIN (with the rest using private health insurance to pay for care).
Self-paying for private health treatment can be extremely costly, depending on the tests, surgery or care you need. If you have the spare funds you could put some savings into a cash account, which would then be available should you need to fund private healthcare in future. But the risk is you don’t know how much money you might need for this and any savings could soon be eroded by private medical bills.
Health cashplans: this is not a form of private health insurance, but more a way of helping towards the cost of routine dental and optical check ups and treatment, among other things. It is a budget option, with premiums starting from around £10 a month, for example, depending on your circumstances.
You’ll then be able to claim a percentage back (typically around 50% up to a maximum cash limit per year) of the cost of your private or NHS dental check ups and treatment, dental hygienist bills, eye tests, glasses and contact lenses. Some cashplans also provide money towards the cost of physiotherapy. chiropody and osteopathy sessions.
Methodology
To arrive at our pick of the best private health insurance cover, our partner LifeSearch made the following assumptions when calculating the best value cover for our tables.
Scenario one: non-smoker, aged 30, healthy BMI, no pre-existing conditions (and no family history of any conditions), lives in central London (SE10). Looking for high levels of coverage with a comprehensive policy.
Scenario two: non-smoking family, couple aged 42, plus two children under 16. Live in Leeds (LS8). One adult has high blood pressure (pre-existing condition, not covered under the policy). No family history of any conditions. Looking for budget cover options and are willing to exclude some features of insurance, such as cancer cover.
We ranked the policies based on monthly premium cost (there is no discount on the premium for paying annually). All policies have a maximum excess of £100. In the case of the family policy this excess is applied per person.
We also considered the levels of cover included, subject to each scenario’s specific requirements. The pricing of policies in our table assumes the cover is fully medically underwritten (see more in our section below on types of PMI cover).
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
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