Is private medical insurance really necessary in the UK? REAL advice | Pros and cons

Introduction

What is today’s podcast about?

A (Gemma): Today, we’ll be discussing Private Medical Insurance (PMI)—how it works, its benefits, and whether it’s right for you during these unprecedented times.

Insurance Overview

Abdul, can you give us a brief overview of the different types of insurance you provide at WIS?

A (Abdul): Yes. We provide:

• Private policies: Life Insurance, Critical Illness Protection, Income Protection, Private Medical Insurance.
• Business alternatives: Relevant Life Insurance, Executive Income Protection, Employee Significant Illness Cover, Business Health Cover.

Understanding Private Medical Insurance

What is private medical insurance?

A (Abdul): It’s a policy that gives you access to private healthcare. Instead of relying on the NHS, you can use private hospitals in your area.

How does PMI differ from the NHS?

A (Abdul):

• NHS is free, but waiting times are long.
• PMI allows you to book appointments quickly, choose your doctors, and access hospitals when you need them.
• It gives you more control over scheduling.

Are private hospitals still running normally during the pandemic?

A (Abdul): Yes. While the NHS halted some non-essential treatments, private hospitals continue to operate almost as usual, with some scheduling challenges due to safety measures.

Benefits of Private Medical Insurance

What are some other benefits of PMI?

A (Abdul):

• Many insurers now offer virtual GP services via mobile apps, available 24/7.
• These apps provide consultations, diagnoses, and even repeat prescriptions.
• It makes getting medical care much easier compared to waiting for GP appointments.

Do people really need private medical insurance?

A (Abdul): Yes, especially now. NHS waiting lists were long before the pandemic, but delays have worsened. Some procedures now have waiting times of up to 52 weeks (a year). PMI provides faster access and more control.

Coverage and Exclusions

What does PMI actually cover?

A (Abdul):

• PMI generally does not cover pre-existing conditions.
• Policies come in two types:
• Full medical underwriting – considers your full medical history.
• Moratorium policies – exclude conditions from the last 3 years for the first 2 years, after which they are covered.

Costs and Renewals

How much does PMI cost?

A (Abdul): Costs vary by provider and services offered. Unlike life insurance, PMI is renewable yearly (like car or home insurance).

Does the price always increase at renewal?

A (Abdul): Yes. Two main factors:

• Number of claims made.
• Age – premiums rise as you get older, even if you haven’t claimed.

Should people shop around for a new deal each year?

A (Abdul): Definitely. The PMI market is competitive, and many insurers offer perks for switching, such as matching cover and extra benefits.

Common Questions about PMI

Q1: Does private medical insurance include dental?

A (Abdul): It can, but dental is usually an optional add-on and the most expensive. Options include routine dental check-ups or major surgery. Some providers also offer standalone dental cover.

Q2: Can my company pay for my PMI premiums?

A (Abdul): No, not for personal PMI—there would be tax implications (P11D).

However, if you run a limited company with 2+ employees, you can opt for business healthcare, which is a valid business expense (like Relevant Life Insurance).

Q3: Can I add my family to my policy?

A (Abdul): Yes. Most clients add their partner and children. Children cannot have standalone policies (under 18), so they must be included under a parent’s plan.

Q4: Can I cancel my policy if I change my mind?

A (Abdul): Yes, but cancellation rules differ by provider. Some may charge a small admin fee. Policies are designed for 12 months, so many people wait until renewal to switch or cancel.

Q5: Does PMI cover Covid-19?

A (Abdul): No, because Covid treatment is handled by the NHS.

However:

• PMI may cover post-Covid complications.
• Some insurers offered cash benefits for each night spent in hospital due to Covid.

Closing Notes

How can listeners get more information?

A (Gemma): If you’d like to speak with Abdul about insurance policies, his contact details are in the comments below this video.

We’ll be back next week with another episode of Let’s Talk Money and Mortgages. Stay safe and see you soon!