With NHS waiting lists at record levels, more people are considering private health insurance as a way to access faster diagnosis and treatment. But private health insurance is not a simple purchase, and understanding what it does and does not cover is essential before committing. This guide explains how private medical insurance works in the UK, what it costs, and whether it is the right choice for you.
What Private Health Insurance Covers
A standard policy typically covers in-patient treatment (procedures requiring a hospital stay), day-patient treatment, out-patient consultations and diagnostic tests, and cancer cover. Many policies also include physiotherapy, mental health support, and access to private GP services. Crucially, private health insurance does not usually cover pre-existing conditions, GP visits (unless as an add-on), A&E treatment, cosmetic surgery, or chronic long-term conditions.
How Much Does It Cost?
Premiums vary enormously based on your age, location, level of cover, and the excess you choose. A healthy 30-year-old might pay £40–£80 per month for a comprehensive plan. A 60-year-old could pay £150–£300 per month for similar cover. Family plans offer savings over individual policies. Employer-sponsored schemes often provide the best value as companies negotiate group discounts.
Types of Plan
Budget plans offer limited cover, typically for in-patient treatment only, with access to a restricted list of hospitals. Mid-range plans add out-patient cover and a wider hospital network. Comprehensive plans cover everything from GP consultations to dental and optical, often with worldwide emergency cover. Some insurers offer modular plans where you pick and choose the elements you need.
Tax Benefits and Employer Schemes
There is no personal tax relief on private health insurance premiums in the UK. If your employer provides health insurance as a benefit, it is taxed as a benefit in kind. However, the value of faster treatment and peace of mind is difficult to quantify. Corporate schemes also tend to underwrite on a medical history disregarded basis, meaning pre-existing conditions may be covered.
Key Takeaways
- Private health insurance provides faster access to consultants and treatment.
- Pre-existing conditions are not usually covered on individual policies.
- Premiums range from £40/month for young adults to £300+/month for older individuals.
- Employer-sponsored schemes often provide the best value and broader cover.
Frequently Asked Questions
Can I use private health insurance and the NHS?
Yes. Many people use the NHS for routine care and their private insurance for specialist consultations or procedures with long NHS waits.
Will my premium increase every year?
Most policies increase premiums annually based on medical inflation and your age. Switching providers at renewal can help manage costs.
Is there a waiting period?
Most policies have a moratorium period (usually two years) during which pre-existing conditions are excluded.
Written by
Emma Woodhouse
DipPFS, Health Insurance Adviser
This guide has been written and fact-checked by a qualified professional to ensure accuracy. All information is regularly reviewed and updated. Wisehande editorial standards require expert authorship and peer review for every guide we publish.
