How much does private medical insurance cost?

Insurers understand that the older you are the more likely you are to need medical advice and treatment, thus increasing the risk of a claim on the policy. As with all insurance policies, the premium is calculated on a risk ratio and will increase the older you are. Some insurers cap age-based pricing on joining after 80, so if you are 83 you will pay the same as someone who is 80 or 87 when you join.

As hospital charges can vary significantly from region to region in the UK, where you live can be a big factor in the price quoted. London hospitals are the most expensive when it comes to hospital and consultant charges. If you do live in London and need access here, there are often options to select a reduced list of London hospitals rather than all of them, which will work out cheaper.

If you don’t live in London, you can opt for a ‘local’ hospital list which will give you the most competitive premium. AVIVA Health offer a ‘signature’ list which only includes hospitals in Scotland and Northern Ireland. If this is where you live and you do not intend to travel for treatment it can work out very competitive.

Although most insurers do not ask for your BMI or even smoking status (some do), your previous medical history can play a part in the calculation of premiums. If you are taking out health insurance for the first time you will most likely not have to declare any medical history, therefore your premium is not based on this. If you are switching your health insurance to a new provider, you will be asked certain questions regarding your medical history and the information you provide will determine the premium quoted. When switching providers, the premium will also be driven by the underwriting method chosen. You can read more on underwriting options here.

The exact details of what an individual health insurance plan covers varies considerably from policy to policy. Standard policies cover surgery, consultations, nursing, and hospital charges. While comprehensive policies cover much more, including out-patient appointments, psychiatric treatment, and complementary medicine.

Health insurers have designed their products with two elements: core cover, which is the base policy, and additional benefit options for you to choose from, to either reduce or enhance your cover.

 There is often a great deal of flexibility in how you build your health insurance policy, and this will determine how much you will pay for private health cover. Here are some of the benefit options you can choose which will affect the premium you will pay.