private health insurance for small business owners uk

Small Business Health Insurance

Helping you find the best small business health insurance policy for your company or group.

Compare small business health insurance policies

What is small business health insurance?

Small business health insurance covers the cost of providing employees, directors and stakeholders with access to private healthcare services such as diagnosis and treatment. There are many small business health insurance providers to choose from, all offering a unique range of additional medical protection and benefits, such as 24/7 access to health advice, digital resources and rewards simply for being a member with them.

The benefits of small business health insurance

A small business health insurance policy needs to match the conditions of the company and workforce or team it is covering. For example, if you direct a labour intensive workforce, additional treatments such as physiotherapy and osteopathy may be an important inclusion in your small business health insurance policy. Tailoring your policy around such details is a great benefit, as these will ensure that everyone in your team gets the most out of their private cover. We can support businesses in understanding the different options and how to best cover their workforce, but below are some of the common benefits small businesses may realise from a small business health insurance policy:

Reduce employee absence

Increase staff productivity, attract & retain members of staff, new employees can be added to the policy at any time, fast access to diagnosis & treatment, provider rewards & benefits, encourages healthy lifestyles among staff, employee peace of mind, access to useful resources & health help, why choose equity health for your small business health insurance.

Understanding all the plans, policies and protection available from the different small business health insurance providers, such as their benefits and exclusions, may be time-consuming as well as it being difficult to access all of the information you need. As independent brokers we can advise and answer critical questions on all of the providers we work with, without being biased. You’ll be allocated a Personal Account Manager who will work with you directly to discuss available small business health insurance options, your full requirements and budget.

You don't pay any fees

Independent advice, full market comparison, bespoke to you, ongoing service, specialist advice.

Small Business Health Insurance: Mental Health in the Workplace UK

of adults in September 2020 reported levels of mental distress needing treatment,

8.7% Higher

Increased from 20.8% in 2019 to 29.5% in April 2020 and then fell back down to 20.8% by September 2020

79% of UK workers

experienced work-related stress, and in April 2020, mental distress was

8.1% Higher

than it was between 2017 and 2019.

49% of employees

felt comfortable talking to their line manager about mental health.

£42bn-£45bn

the cost of poor mental health from employees for UK employers each year (as of 2020).

As the above statistics show, the issue of mental health in the workplace in the UK is still prevalent in 2020 - and has only been exacerbated by the COVID-19 pandemic, with many suffering from stress, anxiety and a host of negative issues while at work. When it comes to dealing with mental health in the workplace, what can you as a small business do to help out?

How can health insurance support positive mental health in the workplace?

1. accessibility to care.

Many employees won’t feel comfortable or know where to refer themselves to if they require mental health help. Medical professionals and health workers will be available 24/7 via the providers’ application, making them easily accessible when an employee needs support.

2. Counselling & health resources

Health insurance providers may include access to private counselling, helplines and digital health resources as part of your cover. Medical professionals and the readily available resources may be qualified to advise and help to diagnose mental health issues before further treatment is needed.

3. Promotes a healthy lifestyle

Having access to private health treatment may encourage your employees to utilise the benefits available to them, which may help towards improving their lifestyle. Some insurers may offer incentives for employees taking health actions such as exercising, which in turn may help to create a healthy culture amongst your workforce.

4. Greater flexibility

Private health insurance access may lead to reduced waiting times in comparison to public treatments and offers more flexibility in appointment times and locations. This flexibility allows employees to seek mental health treatment around their schedule, without causing conflict with other arrangements they may have.

Understanding the cost of small business health insurance

Small business health insurance is no different to a personal policy in the sense that the price will reflect the conditions of those being covered, the level of protection opted for and how many staff members are within your business. We can discuss the options available for reducing your premiums, but here are the factors and conditions that will influence the price of your small business health insurance policy:

• Age of policyholders
• Level of cover
• Hospital lists
• Number of named employees
• Underwriting
• Claims history
• Outpatient cover
• Additional cover options

What happens if an employee leaves the company?

Your employee may have the option to continue their cover under a personal health insurance policy with the same benefits and underwriting in the time after leaving. In this event, we can offer to help any of your employees leaving employment with you find a new health insurance policy that works for them.

Other Business Health Insurance Services

If small business health insurance isn’t wasn’t the kind of cover you were looking for, you can browse some of the other business insurance pages we have below for more information.

Corporate Health Insurance

Corporate Health Insurance is a type of business health insurance for large companies and their workforce. Learn more about our corporate health insurance with the link below.

Group Travel Insurance

We work with Voyager Travel Insurance; an award-winning provider offering great value group travel insurance as a type of business insurance. Learn more about our group travel insurance here.

Health Insurance Renewals

Need to start considering whether you're going to renew your policy with your current provider, or considering a new provider? You can learn more about our health insurance renewals here.

Small Business Health Insurance Blogs

Below you'll find our latest blogs covering the topic of small business health insurance. To see more articles like this, you can view our Health Insurance News & Blogs page here.

This guide explores the fundamentals of company health insurance in the UK, such as its definition, cover options, policy details, and how it compares to personal health insurance plans.

If you want private health coverage but are concerned about the cost, there are many ways to make policies more affordable for you and your family. Learn more in our blog.

There are various ways for consumers to get health insurance quotes. We aim to explain the options available so that you can make better decisions for your own private health needs.

All Blog Posts:

Affordable Business Health Insurance.  Our dedicated business team will find the most tax efficient solution.

Small Business Health Insurance FAQs

I already have small business health insurance, can i switch providers, who qualifies for small business health insurance, why should a small business have health insurance, is a small business required to provide health insurance, how much should a small business spend on health insurance, what is the best health insurance for a small business, what is the average cost of health insurance for small businesses.

Find out what you really need to know, plus easily compare prices from hundreds of deals, no matter what insurance you need.

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Average Cost of Small Business Health Insurance (2023)

A small business owner typically pays in the range of £20 to £100 per employee for health insurance. To see how health insurance costs vary based on factors like the age and number of employees, as well as the level of cover, we've run some numbers with Bupa, the largest private health care provider in the UK. Here's what we found.

• Cost of small business health insurance
• Cost per employee

How much does health insurance cost for a small business?

Health insurance for a small business costs around £200 a month for a small business with 5 employees. But what about larger businesses? The chart below shows how costs change as your business grows assuming your employees are in their early 40s. As you can see, prices rise linearly with the number of employees.

Average small business health insurance cost per employee

The typical cost of small business health insurance on a per employee basis is around £45 a month, but can range from around £23 to £100 a month or more depending on employee ages and the tier of cover. Employees in their 50s cost around 2X as much to insure as employees in their 20s. Other factors like the excess would also affect the rate.

For these examples, the low tier plans include lower out-patient limits, less complementary medicine coverage and a smaller network of eligible hospitals, but all include full cancer treatment and the same number of days of mental health cover.

Small business health insurance cost calculator

To calculate how much health insurance might cost for your small business, use the table below to look up estimates based on the number of employees and their ages. These figures are estimates for a sample business quoting for a mid-tier policy. Rates could differ by 10% - 30% for a lower or higher tier of cover.

Should I buy health insurance for my small business?

Health insurance is a perk that many small businesses are offering to employees now as they compete to offer attractive packages to applicants. While not required, it is a feature that can tip the scales for a potential employee deciding between multiple job offers.

In a similar sense, certain types of small business insurance can attract employees. Any small business hiring a senior manager, director or officer would want to consider buying a directors & officers insurance policy, for example, as this protects these key people from being sued for doing a poor job.

What factors affect the cost of business health insurance?

The most obvious factor is the number of employees, as costs rise with each additional employee. In addition, the age of your employees will affect your health insurance costs as well. Employees in their 60s can cost around 2.5X as much to insure as employees in their 20s. This is not a surprise as older people tend to have more health issues. The level of cover is also a big factor, with premium plans costing up to 35% more than basic plans. This difference in prices across tiers is more pronounced for older employees, whereas there's not a huge price increase for premium plans when insuring young employees.

Next we'll look at health insurance costs per employee and overall for different business sizes. Note: the figures in this study all reflect an excess of £100 per person per year. The excess is the amount an employee pays towards treatment.

How can you save money on small business health insurance?

Here are some ways to save money on health insurance for your small business employees.

• Excess. Raising the excess (the amount an employee pays towards cover) should lower the insurance rate.
• Reduced outpatient cover. Policies with lower limits of insurance will be cheaper. Plans with unlimited cover will cost the most.
• Hospital access. You may find higher-tier policies offer access to a wider network of hospitals. Going for a smaller network might result in a cheaper rate.
• Discounts. UK health insurers offer discounts from time to time. For example, Bupa was offering 20% off to new customers at the beginning of 2021.

Methodology

To learn about the cost of small business health insurance in the UK, we received quotes from Bupa for sample businesses of different sizes, with different employee age profiles. We broke down the data on a per employee basis as well as for a business as a whole. Rates for your small business might vary significantly.

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Small business health insurance

Invest in the health and wellbeing of your team with small business health insurance.

What is small business health insurance?

Business health insurance gives employees access to private healthcare services in the UK. Depending on the level of cover you opt for, you're team will be able to receive treatment for everything from inpatient and day-patient surgeries to outpatient consultations and mental health support.

Benefits of small business health insurance

When small businesses provide private health insurance to their employees, it doesn't just benefit them; it benefits the business too.

Benefits for employees

Benefits for employers, how does business health insurance work.

Here's how a typical business health insurance policy works:

Make a claim

The precise time your employees can go private for their consultations and treatments will depend on the level of cover you opt for, so please speak to us, and we'll help you configure your policy.

What our customers say

What does business health insurance cover.

As with all insurance policies, what you get depends on your provider and how much you pay.The most significant difference between basic and more comprehensive policies is whether they include outpatient diagnosis and treatment.

Basic policies

Most small business health insurance plans will offer your team the following:

Comprehensive policies

Depending on the provider you use, you can get other services to enhance your policy and make it more comprehensive:

Additional cover options

Health insurers also allow you to add extras to your plan to give your employees even more comprehensive healthcare, including:

• Mental health cover - As well as access to a helpline, you can add mental health treatment from a psychiatrist, psychologist, therapist or counsellor.
• Alternative therapy - Treatment outside the traditional doctor or hospital setting. For example, a chiropractor or acupuncturist.
• Routine dental and optical - Your health insurance policy can also contribute to the cost of regular check-ups with an optician or dentist.
• Travel cover - Your policy can include cover for short trips abroad.
• Cover for family members - You have the option to extend healthcare coverage to your employees' immediate family.

What's excluded?

While policies can be very comprehensive, there will be some common exclusions the providers will outline in their documentation. Typical exclusions include:

We keep things simple with straightforward, honest advice.

Insurance can be complicated at times, so our priority is to keep things simple and give you the facts you need to make a decision. We don’t rush or push clients in a given direction - it’s vital you come away feeling confident in your choice.

How health insurance can support mental health in the workplace

Employees' mental health is a top priority for small businesses. Too many working days are lost to team members struggling mentally .While no small business owner wants to create an unhealthy environment for their team, the high workloads and tight deadlines associated with working in a small business can affect people's mental health. As a result, many business owners spend time devising strategies to improve mental wellbeing in their workplaces. Small business health insurance can be central to these strategies, especially as mental health care can be hard to access via the NHS.

Mental health add on options

Depending on the cover you choose, you may be able to add a broad range of mental health options, including:

A workplace centred around wellbeing is a happy and productive workplace. Invest in your staff's mental health and watch your business thrive.

Leading providers of business health insurance

The UK's four major insurance providers offer small business health insurance to business owners and sole traders. Let's look at each of them in turn:

Aviva is an award-winning provider offering private healthcare cover options for businesses with between 1 and 249 employees. It aims to be as flexible as possible, giving staff members access to the treatment they need on their terms. ‍ When you take out small business health insurance with Aviva, you and your team receive the following:

Standard cover includes acute cover, cancer cover, treatment for musculoskeletal pain and a mental health helpline. You can also add additional benefits, including dental and optical care, diagnostic tests and GP-referred services.

Bupa offers small business health insurance for businesses with 50 employees or fewer. Choose from four different cover options, with higher premiums giving you a higher level of cover. If you take out the base level of health insurance with Bupa, your team members will get the following:

Bupa's base cover level also offers outpatient coverage for consultations, X-rays and diagnostic tests up to £1,000 per year. There's also mental health inpatient and day patient treatment, access to a digital GP, and cover for eligible muscle, bone and joint conditions.

AXA Health recognises that having a happy, healthy team is essential to a thriving business. AXA Health has a range of excellent health insurance solutions for small businesses with an employee headcount between 1 and 249. Here's what your team can access with AXA Health, depending on the policy you choose:

You can also get up to 40% off for your people at Nuffield Health, fitness and wellbeing centres. Let AXA Health help you build a tailored plan to match your business needs and budget.

Vitality's small to medium-business health insurance is there to help you make a real difference to your employees. With the Full Cover Promise, your staff can get the following:

As with many Vitality insurance products, you and your people can earn rewards when you look after your health better. Rewards include money off an Apple Watch and a weekly barista coffee.

What affects the cost of a small business health insurance policy?

The premiums you pay your provider for small business health insurance will depend on several factors, including:

• Number of employees - How many people you choose to cover on the policy.
• Age of employees - If your team are older, it will cost more to insure them.
• Level of cover - The higher the cover and the more add-ons, the higher your premiums.
• Claims history - If you make many claims on your health insurance, it will cost more to renew in the future.
• Location - If your business is located in an area where private healthcare is more expensive (such as London), your health premiums may be higher
• Outpatient care - Adding outpatient care is excellent for your people, but it does mean higher premiums.
• Choice of hospital list - The more hospitals and medical facilities available to your people under your policy, the more expensive it will be.

Underwriting methods

The underwriting method is the final factor that affects how your premiums are calculated. Here are the four options for underwriting:

Fully Medically Underwritten

Two-year moratorium, continued medical exclusions, medical history disregarded, small business health insurance faqs, is small business health insurance worth it for employers, do employees benefit from health insurance, how do you claim on health insurance in a small business, what's included in small business health insurance, how does it affect my employees' tax status, how can i save money on my private health insurance, what does fully underwritten mean, can my team claim for pregnancy, can i get dental and optical cover included, does small business health insurance cover mental health treatment, what is a directory of hospitals.

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How we can help your business

When one person is off, the pressure's on. We'll work quickly to get them back to better health. Because a full team is a more productive one.

With small business health insurance , we're here from diagnosis to treatment. If you're a sole trader, we can do the same for you with a personal policy.

We're not just here to fix problems, we want to prevent them too. Choose from a range of wellbeing services or dental cover , with or without health insurance.

How much does business health insurance cost?

A year of Key level 2 health cover from £35.04 per person, per month

Yearly guide price for five employees: £2,102.52

Example criteria

• Single cover for 5 employees aged 21, 28, 46, 46 and 51
• Based in Shrewsbury
• Social care business
• £0 excess, per person per policy year
• Full medical underwriting - no pre-existing conditions
• Paid for monthly - you may save up to 2.5% if you pay yearly

Key Features

• Unlimited GP appointments using Bupa Blua Health or another digital GP service
• Mental health, cancer care and muscle, bone and joint cover
• Access to 600+ hospitals and clinics
• Treatment such as consultations, physio and more
• Hospital care including day appointments and overnight stays
• Health helplines for your team and their family

When I joined the organisation, I was very impressed with how collective and committed the team were as a whole at Nexteq.

It was actually very heartwarming to see a group of individuals that actually got on really well together and were super driven and motivated.

And I do strongly believe the reason for that is because they are very well looked after from an organisational perspective, which includes measures such as looking out for their wellbeing and healthcare.

If you are able to put those measures in place, you can attract the right sort of talent.

It's also the starting point, the story that you have to give them about what you offer as an organisation.

And what Nexteq actually offer is a very supportive, dynamic and collaborative organisation that takes care of its employees and actually listens to its employees.

And that, for me, was an absolutely brilliant and lovely thing to witness and see when I first joined.

Hi, I’m Mandy Halsey Group HR Director at Nexteq plc.

We are an IPC technology company that specialises in hardware and software solutions for a number of industries.

I think for me, health and wellbeing is absolutely critical.

I really do not understand any organisation that doesn't spend a level of time thinking about its employees and their health and their wellbeing, because for me, ultimately that is the bedrock of ensuring that employees are productive and feel happy in their roles.

And I won't compromise by working for an organisation that doesn't care for employee wellbeing and engagement.

We have given all of our employees access to a private medical cover as well as the other offerings.

And it's there for a number of reasons, but one of the most important reasons is it’s there to look out for employees’ health.

Because if we have healthy minds and healthy bodies, we have healthy employees that are able to produce and to deliver and to work to the best of their abilities.

So it's a no brainer for us, really.

As an HR Director in the technology arena, I think is really important to understand what else is going on around us in terms of what other organisations are doing and what they're offering.

I think the really important part here is to create our own niche and really focus on what we have to offer as an organisation and to ensure that we communicate that with our employees.

And we let them know at the start of the hiring process all of the initiatives that we are invested in so that they can understand how seriously we take the employee piece.

And it's not just lip service when we're actually here to look out for our staff and we take that very seriously.

I think for me, the two key concepts around attracting and retaining talent.

Number one is to provide a warm, supportive, friendly and collaborative environment for employees to feel safe, to come into work, for them to be their authentic selves.

But also, the other really fundamental part of that is to provide support in terms of their wellbeing, whether that's through healthcare initiatives or those such items.

But for me, those two are absolutely important because ultimately those are the key drivers to employee performance.

It's very important for us to ensure that we've got a diverse health and wellbeing plan that helps to reflect the varying and wide ranging demographic of our staff.

And we've got staff from a number of different demographic backgrounds, age, sex, plus other diversity.

So it's really important for us to make sure that we've got a plan in place that caters for almost as many people as we can.

To that effect, we've actually recently just switched over to a private medical cover that covers pre-existing medical conditions.

And that is because we firmly believe that we would like to cater to as many of our staff as we possibly can that've got a range of diverse backgrounds.

Here at Nexteq the idea of a work-life balance is quite interesting because we almost go beyond other organisations in that we provide a balance at work to look after our employees to make sure they've got the right forum, that they feel like it's a dynamic and collaborative environment.

So we are not just colleagues who support each other.

It extends beyond that.

And I think part of that is actually very important because having a good health and wellbeing programmes in place, these are the sort of concepts that help to boost those relationships, to go beyond just a working relationship, which I think in turn helps to increase and boost productivity and to improve performance ultimately in the workplace.

That's why it's so important to have aspects like a good health and wellbeing programme in place, because you're providing employees with that care.

They feel like they're part of a collaborative team effort.

The more they feel supported and loved and cared for, that to me is the bedrock of boosting productivity.

NOW PLAYING

BupaWhen I joined the organisation, I was very impressed with how collective and committed the team were as a whole at Nexteq.

Follow Nexteq on their Bupa journey

Join us as we speak to Mandy Halsey, Group HR Director from Nexteq plc. Mandy highlights the importance of creating a workplace environment focused on wellbeing, where employees are both productive and happy in their roles.

For Mandy, prioritising health and wellbeing is essential for a successful business. If we have healthy minds and healthy bodies, then we have a healthier workforce and that’s good for business.

Bupa and JAAQ. Better for business

We've partnered with JAAQ to give you access to JAAQ at Work, an exclusive employee engagement platform.

We’re bringing together Bupa’s clinical expertise and JAAQ’s specialist employee engagement platform to create an exciting, innovative way to access health and wellbeing content.

Your employees can feel safe and supported, and you can use real-time data to create informed wellness strategies.

It all starts with a question.

More about JAAQ at Work

How can I get a quote for my business?

Fill in your details for a guide price.

We'll show you guide prices for Key, Enhanced and Complete - that's levels 2 to 4 so you can compare cover and cost.

Get an online guide price

Call us for a more accurate quote

We calculate your price based on lots of factors. Talk to us about options and we can provide tailored quotes for all cover levels.

Call 0345 266 8974 ^

Support for health problems affecting small teams

Lower stress levels

Juggling multiple roles when there's only a few of you can impact mental health . With counsellors on hand, the team can get advice on better ways of coping.

Save time on GP waits

When one person's off, business slows down. With day and night digital GP appointments , the team can be seen quickly around busy schedules.

Tackle aches and pains

Whether you're at a desk or working a shop floor, sore muscles, bones and joints can hold your team back. That's why we fast track to experts when pain appears.

Looking to switch to Bupa from another health provider?

Want dental cover here's how it can help your business.

Separate to our health insurance, you can cover your people's teeth and gums with reliable dental insurance.

Swift dental action

Help employees skip long waits to see a dentist. By fixing problems sooner, we help could lower absences.

Convenient locations

With over 350 Bupa-owned practices nationwide, there's likely to be one close to home or work.

Minimal disruption

Our Dental Care Support Line and digital services can be easily used around a busy work schedule.

Boost health

Healthy mouths contribute to healthy bodies. Keep them at their best with access to check-ups and treatment.

Choose from a range of wellbeing services

You can pick one or more services to match your team's needs. Or you can combine them with health insurance for even more support.

Explore desirable health benefits

• Health assessments
• Private GP and nurse time
• Employee assistance programme (EAP)
• Flu vaccines
• Menopause Plans
• Period Plans

Got a different question? Give our team a call on 0345 266 8974 . Lines are open 8.30am to 6pm Monday to Friday, excluding bank holidays.

If you’re a limited business

If you have family members who work with you, you can choose business health insurance over personal policies. This means you'd be eligible for tax relief. This is a benefit in kind for team members, so they'd pay tax on it but the business would save money.

If you have an unincorporated business

You're eligible for tax relief. The cost of covering your team gets deducted as a valid expense when calculating taxable profits.

For full advice, we recommend speaking to HM Revenue & Customs (HMRC), a tax adviser or an accountant.

Yes. You know your people best, so if they're worried about waiting for a dentist or usually get sick over winter, we've got services that can help. When combined with health insurance, you're covering your team from teeth to toe.

You can also choose services without health insurance. It all depends on your health priorities and budget.

Explore wellbeing services

No. These are separate products, but you can choose to offer them both to your team for full body cover. If you're just looking for fast access to dentists, that's okay. You can just go ahead with dental insurance.

^ Lines are open 8.30am to 6pm Monday to Friday, excluding bank holidays.

Bupa Blua Health is provided by Bupa Insurance Services Limited, registered in England and Wales with number 3829851. Digital GP services are powered by eMed Healthcare UK Limited, registered in England and Wales with number 15086104, Registered Office: 184-192 Drummond Street, London, England, NW1 3HP

Bupa health insurance, dental insurance and cash plans are provided by Bupa Insurance Limited. Registered in England and Wales No.3956433. Bupa Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Arranged and administered by Bupa Insurance Services Limited, which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales No. 3829851.

Bupa health assessments, EAP programmes and flu services are provided by Bupa Occupational Health Limited. Registered in England and Wales No.631336. Registered office: 1 Angel Court, London EC2R7HJ.

If you own a small business in the UK, have you thought about health insurance for your team?

A small business health insurance policy can be a cost effective way to make sure you and your staff can access medical treatment when you need it. Even if there are only two people to consider, you do have options available.

With the arrival of COVID-19 many people are struggling to access primary care via the NHS. Private medical insurance providers have developed and extended their plans so that members can speak to a qualified GP via telephone or mobile app . This means that your staff do not have to wait for an appointment with their NHS GP.

Reducing absenteeism and presenteeism is essential for you to keep your business on track in these unprecedented times.

What small business health insurance policies are available?

Health insurance covers quite a wide range of policies in the UK market. Within each sector there are a number of different providers and policy types available. Whether you are looking for a low cost policy such as an employee assistance programme or a more comprehensive plan such as private medical insurance .

Small business health insurance policies available in the UK include:

• Employee Assistance Programmes
• Excess and shortfall insurance
• Travel insurance
• Dental Insurance
• Hospital Treatment Insurance
• Private medical insurance
• Occupational Health solutions

You could look at any of the policies on an individual basis or you could combine one or more plans. The exception to the rule would be the excess and shortfall insurance. This is designed to run alongside a private medical insurance plan.

Let’s consider the different small business insurance policies available in more detail:

Employee Assistance Programme (EAP).

The cost of an EAP is very low. They are an employee benefit that offers the employee support in the form of telephone or face to face counselling. Offering a 24/7 helpline for employees to discuss issues whether work related or personal that could affect their ability to work. Some services may also be available to immediate family members also.

Higher level EAP’s also provide a strong element of employer support for managing absenteeism, supporting staff and managing their return to work.

If you employ staff but are restricted by a tight budget, and EAP would really offer maximum support for minimum cost.

EAP’s can be bought as a standalone policy, as part of a cash plan or private medical insurance policy.

Excess and Shortfall Insurance .

This is a great policy designed to work with a private medical insurance policy. This is only available for plans with 5 or more employees.

If you add an excess when you buy a private medical insurance policy this reduces the annual premium. The excess and shortfall insurance would then pay the excess or shortfall should an eligible claim be made. The cost of the excess and shortfall policy is very low and makes it a fantastic money saving solution.

What is an excess?

This is the amount you agree to pay when you make a claim. In most cases the excess is per policy year but could be per claim.

What is a shortfall?

If your consultant or hospital charges over your insurers fee guidelines there may be a shortfall in payment. The employee would be liable to pay any shortfall in treatment costs to the provider.

Cash Plans .

Cash Plans offer cash back for everyday healthcare costs such as dental, optical, physiotherapy, osteopathy, dental accident, health screening, alternative therapies, vaccinations & inoculations. There are many providers of cash plans and they all offer similar core benefits. Additional benefits then vary between each insurer.

One UK provider actually includes full refund cover for high cost scans such as MRI, CT and PET scans as part of their core benefits.

Your cash plan provider will be able to offer you an EAP and may offer PMI excess cover too. The PMI excess cover would only be necessary if you have a private medical insurance policy in place and have an excess on that policy.

Cash plans are also a very low cost option and are available to businesses with 3 or more staff.

There is no difference in premium regardless of your age.

Travel insurance .

Group travel insurance is a cost effective way to cover travel insurance requirements for employees. In 2020 with the coronavirus pandemic still disrupting global travel you may not be looking for cover of this type, Please remember though, when everything is back to normal, buying a group travel insurance policy for your small business is an option.

Often sold on a “fit to travel” basis, starting a small business travel insurance policy is easy as your staff will not need to declare their medical history.

You may also find that your private medical insurance provider will offer travel as an add-on benefit to your policy. This is also a simple option, minimal (if any) additional paperwork and a small additional premium for cover.

Dental Insurance .

Small business dental insurance is widely available in the UK. With a whole host of providers offering excellent benefit levels, you have many policies to choose from.

Group dental insurance is not age rated. If you have a 20 year old, 40 year old and 60 year old on the same policy, their premiums will be the same. You can find low cost options that are designed to pay 100% NHS dental fees. You can also buy a fully comprehensive policy with benefit levels that will cover the higher charging private dental costs.

The really fantastic thing about small business dental insurance is that your staff do not have to have a pre-joining dental examination. This makes the set up and membership additions easy for everyone. One provider will even offer small business dental insurance with just one member on cover.

Your private medical insurance policy may offer you a dental (or dental and optical) add-on. These do not tend to be as extensive in cover or value as a standalone dental insurance policy.

Hospital Treatment insurance .

We would not be surprised if you have not even heard about this option!

Hospital treatment insurance is a policy that sits somewhere between a cash plan and private medical insurance. This policy actually works brilliantly alongside a cash plan too.

This is available for businesses with 5 or more employees and the cover it provides is for non-urgent surgery such as:

• Gall bladder surgery
• Hip replacements
• Hysterectomy
• Knee replacement
• Slipped discs
• Varicose veins

In fact, cover is available for over 60 non-urgent surgical procedures.

Hospital treatment insurance does not cover people for any treatment relating to heart, cancer or psychiatric medical conditions. Chronic conditions are also not covered.

There is no difference in premium regardless of your age as these are community rated policies.

Underwriting available on moratorium (MORI) terms for groups of 5 to 499, Continued personal medical exclusions (CPME) or Medical history disregarded (MHD) terms for groups of 500 plus members.

Employees will have a specified monetary claim limit for the lifetime of their policy and will be limited to 3 surgical procedures within a consecutive 12 month period.

Even with the limits in place as shown, Hospital Treatment Insurance still offers small businesses excellent value for money.

Private medical insurance .

Small business private medical insurance is available for 1 or more members. Not all providers will offer a 1 or 2 member policy but they are available. Rates for small businesses with 3 or more employees would be more cost effective.

Private medical insurance is an excellent way to ensure that your staff have rapid access to medical treatment. There are some excellent options from all insurers in the UK. As these policies tend to be modular, you can ensure you are only paying for the cover you need.

UK private medical insurance is designed to cover acute medical conditions and will generally not provide cover for the routine monitoring or medication of a *chronic condition.

*You may have access to a limited element of cover for chronic conditions depending on your policy provider.

When you buy private medical insurance as a small business there are different underwriting options available. Full medical underwriting, Moratorium underwriting and CPME/ CMORI (continued personal medical exclusions/ continued moratorium) are common options.

For businesses with 15 or more employees you could also look at Medical history disregarded underwriting (MHD). This option is more expensive however, it means that your staff would be covered for pre-existing medical conditions.

Small business private medical insurance policies offer cover for a number of element including:

• In-patient and Day-patient treatment
• Out-patient diagnostics and consultations
• Mental Health
• Therapies such as physiotherapy
• Cancer treatment
• Oral surgery
• Complications of pregnancy
• Home Nursing
• Private Ambulance
• 24/7 helplines
• Access to private GP appointments via mobile apps or telephone

The above list is not exhaustive. Many insurers offer additional rewards and benefit add-ons too.

Benefit add-ons could include dental and optical cash back, travel insurance or employee assistance programmes (EAP).

Essentially the more elements that you add to your policy, the higher the premium will become. If you know you could afford to self-fund out-patient treatments and therapies then you could remove them from cover completely or reduce them to a specific monetary limit. This is one way to control the cost of your premium.

Private medical insurance policies offer you the option to add an excess to your policy. The higher the excess you add, the lower your premium will become.

If you are looking for a small business health insurance plan of any type then the team at SMP Healthcare can help you.  We have many years’ experience in the UK health insurance sector and can guide you in making the right decision.

We work alongside the majority of health insurance providers and can help you find a great policy first time. The market review that we provide our clients confirms details of cover available and will recommend a policy and provider based on the needs of your business.

If you would like to work with a truly independent health insurance broker then please get in touch.

Telephone:  0800 047 0127/ 01245 929129

Email:  [email protected]

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• Small business
• Guidance for employers

What is private medical insurance?

28 June 2024

Private health cover

We provide business healthcare cover for 1 to 249 employees. Our plans are built around the needs of you and your business.

In most instances, private medical insurance (sometimes referred to as private health insurance or private healthcare cover) covers the cost of private medical treatment for acute conditions that develop after your policy has started (depending on the details of your plan). Treatment for chronic conditions usually isn’t covered by private medical insurance.

What does private medical insurance usually cover?

As mentioned above, private medical insurance typically covers the cost of private medical treatment of acute conditions that develop after your policy has begun. An acute condition is defined as a disease, injury or illness that is likely to respond quickly to treatment which aims to return you to the state of health you were in immediately before suffering the disease, injury or illness, or which leads to your full recovery.

Private medical insurance doesn’t typically cover the cost of treatment for chronic conditions for you and your employees. A chronic condition is a disease, illness or injury that has one of more of the following characteristics:

• It needs ongoing or long-term monitoring through consultations, examinations, check-ups and/or tests
• It needs ongoing or long-term control or relief of symptoms
• It requires your rehabilitation or for you to be specially trained to cope with it
• It continues indefinitely
• It has no known cure
• It comes back or is likely to come back

The acute conditions that are covered by your plan will depend on a number of factors including your medical history, the underwriting option you select and the cover options that you choose. At AXA Health, we offer a range of small business health insurance cover options for you to choose from so you can build a plan that works for you, your team and your budget.

How does private medical insurance differ from other health plans?

Private medical insurance is designed to cover the cost of private treatment for eligible health conditions. This differs from a number of other health plans that are available, including:

• Critical illness cover : Critical illness cover differs from private medical insurance in that rather than covering the cost of private treatment, it pays out a lump sum if you’re diagnosed with a specified critical illness. 
• Health cash plans : Health cash plans can be used to spread the cost of everyday, routine healthcare bills including dental check-ups and eye tests. 
• Accident, sickness and unemployment cover/income protection : This provides a set monthly payment if you’re out of work due to accident, sickness or unemployment to help you cover the cost of bills and mortgage payments etc.

What are the benefits of private medical insurance for my business?

Private medical insurance can have a number of benefits for you and your employees, including:

• Flexible appointments : Medical appointments can often be difficult for your employees to get to, particularly when they're at inconvenient times and locations. With private medical insurance, you and your staff can have much more control over your appointments, including where and when you're treated
• Quick access to diagnosis and treatment : One of the main benefits of private medical insurance is that you and your employees can get quick access to diagnosis and treatment (depending on the cover options you choose)
• Treatment in a private hospital : It also comes with the added benefit that employees will receive eligible treatment in a private hospital, usually with their own private room
• Peace of mind : When one of your team has a health worry, it can be difficult for them to concentrate on anything else. Private medical insurance can provide peace of mind that, should your employees have a health worry, they can access help and support promptly via services such as online GP and health information telephone helpline

Small business guide to health insurance

If you’ve considered offering small business health insurance to your team, it’s likely that you have questions around how it works. You’ll want to make sure that you’re getting the cover that will best suit your business and your budget, so you can support the health and wellbeing of your team. That’s why we’ve created our small business guide to health insurance.

Our small business guide to health insurance covers a number of frequently asked questions, including:

• How does private health insurance impact tax?
• How might employees benefit from small business health insurance?
• What underwriting options are available and what can’t I claim for?
• How does the claims process work?

Read our small business guide to health insurance

If you've considered offering small business health insurance to your team, it's likely that you have a lot of questions around how it works. That's why we've created our small business guide to health insurance. 

Already know what you're looking for?

Start taking care of yourself and your team today and get a quote for our small business health insurance.

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Business health insurance from WPA

We can offer a range of options to support employee health and wellbeing - regardless of your number of employees, we have solutions for all company sizes. please contact us to discuss the funding and benefit options available to you., putting our members at the centre of all that we do, a tailored and flexible healthcare package.

Providing health insurance for your employees helps shape a positive company culture by sending out a clear message that you value their health and wellbeing.

Your employees are important to your business and a health insurance scheme is an effective way to help look after them. Your employees can access prompt private hospital and specialist treatment, thereby improving employee productivity and reducing staff absenteeism due to ill-health.

Valuable support services, such as an Employee Assistance Programme (EAP), Remote GP benefits or self-referred treatment pathways can be incorporated within your healthcare scheme to benefit your employees and their family members.

A comprehensive package of benefits enables you to create a healthcare scheme that's tailored to your company's budget and your business requirements.

To discuss the funding and benefit options available to you, please contact us .

Why choose WPA?

• Healthcare schemes that can be tailored to your company's budget and business requirements.
• Specialist in-house clinical teams provide dedicated and personal claims management to support those members with complex clinical needs.
• Our market leading management information tool, Precision Analytics, provides daily data which is never more than 24 hours out of date.
• Customer service excellence built up over 120 years.

What are the benefits of business health insurance?

Precision Analytics provides up-to-date market leading management information.

Improve productivity with employees getting quicker access to private medical treatments.

Health insurance, cash plan, dental plan or a combination, the choice is yours with our flexible healthcare schemes.

Improve staff wellbeing for a healthier workforce.

Flexibility to suit your business needs with the ability to mix and match benefits.

Options available to help reduce your premiums, whilst ensuring that your employees aren’t compromised on benefits.

Please give our UK Team a call to discover how we work collaboratively with you to optimise your health & wellbeing strategy.

Health insurance for businesses of all sizes

Whatever the size of your business, we have a comprehensive range of products and advanced services to support employee health and wellbeing.

2 - 150 employees

Our solutions for small and medium enterprises.

From private medical insurance, through to cash and dental plans, our policies can be tailored to protect the health and wellbeing of your staff.

Alternatively, give our UK team a call on 01823 625247 .

150+ employees

Our solutions for large companies.

Private medical schemes purpose built to fulfil your specific needs, where you define the scheme benefits and administration protocols.

Alternatively, give our UK team a call on 01823 625051 .

WPA Health app

Enhanced features in the palm of your hand..

Available on iOS and Android, and designed for the convenience of our members, WPA Health provides easy access to your secure account. Simply sign-in using your WPA username and password.

Members can easily manage their cover with our app.

• Make a claim 24/7
• Access 24/7 Remote GP Services
• Track claims and benefit limits
• Send and receive secure messages
• View membership literature

Health & Wellbeing support

Supporting health and wellbeing with a range of useful informative videos offering practical advice for employees and their family members.

Further support information can be found on our Health & Wellbeing hub , including information articles, videos and leaflets that can be downloaded and distributed to your employees.

View more Health & Wellbeing support information

Business health insurance from a specialist health insurer

For companies large and small, we have a comprehensive range of products and advanced services to support employee health and wellbeing.

• Health insurance is an effective way to help look after your valuable employees.
• Improve employee productivity and reduce staff absenteeism due to ill-health.
• Employees have the freedom to choose where, when and who provides their treatment.
• Comprehensive range of benefits and options enabling you to tailor a package to your business needs.
• Commitment to customer service excellence built up over our 120 year history.

Small & medium businesses

(2 or more employees).

Please give our UK team a call on 01823 625247

Large companies

(250 or more employees).

Please give our UK team a call on 01823 625051

• Compare Quotes
• Health Insurance Guides /
• Small Business Health Insurance Cost
• Insurance Guides /

How much does small business health insurance cost?

The cost of small business health insurance in the UK is affected by numerous factors, so producing a meaningful average is difficult. That said, we've got quotes from the leading health insurers to indicate what you can expect to pay for a group health scheme.

What is small business health insurance?

Small business health insurance is a policy taken out by an employer to provide employees access to private healthcare services in the UK. While there are differing levels of cover to choose from, broadly speaking, these policies allow employees to be diagnosed and treated faster than they might be via the NHS.

Is private healthcare worth it?

It's well documented that the NHS is suffering from a  record-breaking backlog , and even critical services like cancer care are struggling. It's not just hospitals that are feeling the strain; getting GP appointments and access to services such as physiotherapy, talking therapies and more has become difficult.

Private health insurance enables those with policies to access private healthcare treatment options in the UK. In most cases, they've seen and treated faster. Here are some of the core benefits of small business health insurance from both an employee's and employer's perspective

Benefits of health insurance for employees

• Avoid NHS waiting lists and be treated sooner
• Access to drugs and treatments not routinely available on the NHS
• Choice over when and where treatment takes place
• 24/7 virtual private GP services (most insurers)
• Physiotherapy and other complementary therapies (comprehensive policies)
• Mental health support and talking therapies (comprehensive policies)
• Cover for family members (if the employer wishes to)
• A private room while they're in hospital
• Discounts on things such as gym membership

Benefits of health insurance for employers

• Ensure employees stay fit and well and return to work as quickly as they can after illness
• Stand out in the employment market and attract employees
• Retain your employees by demonstrating your commitment to their wellness
• Greater flexibility with medical appointments with doctors available 24/7

What does health insurance cover?

All health insurance policies, both for businesses and individuals, are designed to cover the costs of treatment relating to acute medical conditions, meaning those that can generally be cured. Chronic conditions, i.e. those that can't be cured and perhaps need monitoring and management, aren't typically covered.

It's difficult always to know what is and isn't covered as, for example, a mental health issue or cancer may not be curable but would still be covered, assuming you have opted to have them covered. Therefore, it's always wise to review your policy terms in detail and speak to a health insurance broker to ensure that you fully understand what to expect.

Cover levels

Later in this article, we look at the current average cost of small business health insurance and those costs are based on three differing covering levels. We won't dwell on this too much, but here is how we've defined each group for which we've provided example pricing.

Key cover includes inpatient treatment at a network of private hospitals across the UK. It also includes some outpatient cover, meaning costs relating to pre-treatment diagnostic tests will be covered only up to a maximum level (typically £1,000). Key cover doesn't include things like physiotherapy or mental health cover.

Enhanced cover

Enhanced cover includes everything Key cover does, but the outpatient cover limit is £1,500. In addition, it also includes therapies cover, so physiotherapy and other alternate therapies are included.

Comprehensive cover

Finally, Comprehensive cover includes unlimited outpatient cover, therapies, and mental health support.

Other options

None of the cover types we've provided pricing for include routine dental and optical cover, nor do they include travel cover, all of which are available as optional add-ons.

What's excluded?

All health insurance policies will typically exclude the following:

• Pre-existing conditions
• Emergency treatment
• Cosmetic surgery
• Childbirth and infertility
• Treatment for chronic conditions
• Self-harm, alcohol and drug abuse
• Treatment is required due to taking part in high-risk activities

Tax implications of a group health insurance policy

Health insurance is seen as a  P11D benefit in kind , meaning that by providing it to employees, they will need to pay PAYE and National Insurance contributions to the value of the benefit. While this is a relatively small amount in most cases, older employees or those with family members who also have cover will see a more significant increase in their tax bills.

From a company's perspective, health insurance is a tax-deductible business expense; therefore, the policy's cost will be deducted from your profit at your year-end.

Small business health insurance cost

In this section, we explain what affects the cost of a small business health insurance policy along with providing you with some example quotes. Please remember that the quotes we've provided are based on many factors, and the price you pay will be different.

What affects the cost of small business health insurance?

While not an exhaustive list, you can generally expect all of the following to affect the cost of your policy:

• Number of employees
• Age of employees
• Level of cover selected
• Whether you cover employees' family members
• Where your company is based
• Cost of private healthcare treatments at the time
• Industry your business works in
• Your employees' medical histories (in some cases)
• The type of underwriting chosen

Small business health insurance costs in 2022

The pricing below is based on quotations from several leading insurers; we obtained those quotes in June 2022.

How your postcode affects the cost of your small business health insurance

While the most significant factors in the cost of your small business health insurance plan will be the number of employees you have, their ages and the level of cover you opt for, your location also has a large impact. In this part of our article, we look at the average cost of health insurance based on where your business is located.

The average cost of business health insurance based on location

This chart shows the cost small businesses can expect to pay for health insurance in towns and cities across the UK.

Health insurance for small business owners

You can typically need three or more employees to set up a group health insurance policy. Therefore if you are a small business owner with less than that number, you'd need to take out a personal policy instead. Thankfully, providers such as WPA offer discounts for self-employed individuals and professionals , so you may end up paying less by doing it personally anyway.

How to compare quotes and get the best price and policy

Comparing small business health insurance isn't straightforward, and there isn't an online tool that'll allow you to do it. The only way to compare prices easily is by speaking to an independent health insurance broker. The service they provide is free of charge, and they will do the leg work and provide you with a summary of what each of the leading providers' charges and offers. Not only that, but they will be able to answer any questions you might have and ensure that you understand what it is you are buying.

Disclaimer: This information is general and what is best for you will depend on your personal circumstances. Please speak with a financial adviser or do your own research before making a decision.

Chris is our resident private health insurance and healthcare expert. He has over a decade of experience writing about private medical insurance and treatment. He's Chartered Insurance Institute qualified and is regularly quoted by the national press.

Frequently Asked Questions

As a company owner, is it better to buy health insurance through my company or personally.

You can only get health insurance through your business if you have three or more employees on the policy. If you are a small business owner that would like to cover for yourself and your family, it may be best to take out a policy personally.

Why should I offer health insurance to my employees?

There are numerous benefits of providing medical insurance to your employees , but perhaps most importantly, it ensures that should they become unwell, they get the treatment they need promptly and are back to work as soon as they can.

Can I take our business health insurance with two employees?

Not usually, most group health insurance schemes start at three employees.

Save up to 37%* on your insurance by comparing policies

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*Based on 461 quotes between 01/22-01/23

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Small Business Health Insurance (SME) in the UK

Private small business health insurance is designed to provide a comprehensive health plan for both you and your employees, encompassing rapid tests, diagnoses and treatment. We’re here to support all kinds of businesses, whether they’re family-owned service providers or startups. Our goal is to help your company offer an attractive benefit : a private health plan for your employees. With the number of options available, we can customise the perfect policy for you, allowing you to focus on your business with peace of mind.

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Why Choose Us

We offer completely free and no obligation advice on corporate private healthcare in the UK. Our experienced advisors will take the stress away from you and do all the hard work in finding you the best Provider by comparing quotes with the top leading providers in the market. We have worked directly with AXA, Aviva, Bupa, and Vitality for over 40 years, and we have tailor-made the best policies for our customers

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How does small business health insurance work?

Health insurance for small companies gives employees access to high-quality private medical care, bypassing NHS waiting lists. It offers core coverage and optional extras, allowing you to tailor the plan to your needs. The policy includes rapid tests, diagnoses and treatments.

Group coverage ensures all staff are covered as long as premiums are paid. Suitable for companies with 1 to 249 employees, this insurance improves employee satisfaction and reduces absenteeism. To find the best plan, request small business health insurance quotes from various providers.

Is company health insurance worth it?

A survey by the Association of British Insurers found that more than half of people (57%) think about health insurance, and almost half (49%) consider income protection when choosing a job. Also, seven out of ten (69%) people would think about getting medical insurance if it was offered by their employer.

Wondering if company health insurance is worth the investment for your business? Here’s why it’s a smart move:

Attract and Retain Talent

Offering comprehensive health coverage demonstrates your commitment to employee well-being, making your company more attractive to top talent. It’s a powerful tool for recruiting and retaining skilled professionals who value their health and security.

Reduce Absenteeism

With private insurance, you and your employees can skip the long waiting lists of public healthcare systems. Access to timely medical treatments means faster recovery times, reduced absenteeism, and a healthier workforce overall.

Boost Productivity

When employees feel supported and cared for, they’re more likely to be engaged, motivated, and productive at work. Providing health insurance sends a clear message that their health and wellness matter, leading to higher morale and job satisfaction.

“The greatest asset of a company is its people.” – Jorge Paulo Lemann 

Our article helps you understand a small company’s health insurance benefits. Learn how it can support you and your employees by providing quick medical care and improving job satisfaction. We offer guidance on understanding costs and choosing the right coverage. Let’s explore how business cover can make a difference, keeping your employees healthy and boosting your business’s success.

Small Business Private Health Insurance Cover

Small Business Health Insurance offers a private health plan for you and your employees, granting access to private diagnostics, treatments, and follow-up care. The extent of coverage typically caters to acute conditions, with curable pre-existing conditions often subject to exclusion for a specific period, while chronic conditions—those less likely to improve—are typically permanently excluded.

This type of coverage strikes a balance between proactive and reactive healthcare, providing both preventative measures and responsive treatments. Employees appreciate the benefits of swift access to treatments and the convenience of consulting with online GPs.

Core cover offers the basic benefits that are typically provided to all policyholders regardless of additional options or add-ons. Core cover usually includes essential healthcare services such as:

• In-patient treatment
• Day-Patient
• Cancer Cover
• Virtual GP ( with most insurance providers)
• Basic Hospital List

The core cover forms the foundation of the policy, with additional features or benefits available as optional add-ons depending on the specific needs and preferences of the company.

Extras are add-on benefits or features that you can add to your health insurance plan to upgrade your core cover. However, it’s important to note that by doing so, your premium might increase. Examples of extras include:

• Mental Health 
• Dental, Optical, and Audiology cover
• Physiotherapy
• Worldwide Travel Cover
• Hospital List Upgrade

Additional Benefits

Plus, many Business Health plans come with added choices and special benefits to make your plan even better at no cost. For instance:

• Employee Wellbeing Centre membership
• Fast track appointments 
• Employee Assistance Programmes
• Second medical opinion 
• Health Screening

Expanding the company’s policy to cover an employee’s family is a great way to make your employees feel valued and committed. It recognises the crucial support families offer to employees’ work. The company can cover the extra cost or employees can choose to pay for it from their salary, which is also a good option. Usually, adding family members through salary deduction costs much less, so many employees go for it.

What isn’t covered?

Every health insurance plan has exclusions, which can be general or specific to an employee’s medical history.

Pre-Existing Conditions  

Any condition an employee sought treatment for in the five years before joining the policy isn’t covered initially.

Chronic Conditions

Long-term illnesses without a cure are generally not covered, such as: 

• High Blood Pressure (Hypertension)
• Chronic Obstructive Pulmonary Disease
• Chronic Kidney Disease 
• Heart Disease
• Mental Health Disorders:

Standard Exclusions

Most plans exclude: 

• emergency treatments
• straightforward pregnancy and birth
• fertility treatments
• addiction treatment
• cosmetic surgeries.

Provider-Specific Exclusions

Each insurer may have unique exclusions such as specific types of cancer treatments or certain mental health therapies.

Understanding these exclusions is crucial when selecting small business health insurance to ensure your employees have adequate health plans. Always review policy details carefully and compare quotes to find the best fit for your business needs.

How much is private health insurance for small business owners?

The cost of health insurance can vary based on factors such as the company’s location, how many employees you have, their ages, and the level of coverage needed. To provide insight into these costs for small businesses, our team of insurance experts conducted market research. We analyzed data from the top four UK health insurance providers: Aviva, AXA, Bupa, and Vitality. This research aimed to offer comprehensive information on how these factors influence the pricing of insurance plans tailored to small businesses.

Comparison by providers

Let’s compare what each provider offers: Bupa, AXA Health, Aviva, and Vitality:

These monthly prices are calculated based on an average employee age of 40 years old, across basic, mid-range, and comprehensive cover levels, with a £100 excess, and for a location in HA9. They are accurate as of February 2024 and may vary depending on location, age and the preferences of the company.

Price by number of employees

After researching pricing, we’ve gathered some insights for businesses with employees aged 30 to 40:

For instance, if you have 1 to 19 employees, you might expect to pay around £36 per employee.

With 20 to 49 employees, the cost could decrease to approximately £32 per employee.

And for 50 to 99 employees, the price might drop to about £28 per employee.

It’s important to note that these prices are subject to change, as the cost per person can change based on factors such as your location, the ages of your employees, your group’s risk level for insurance and the health plan you choose.

How to reduce the cost?

Opt for a higher excess, which reduces premiums by lowering the overall cost of medical care. You can opt for £0, £100, £150, £200, £500, £1000, £2000

Reduce Outpatient Cover

Reducing outpatient cover can lower the monthly premium. For example, opting for limited outpatient cover, such as £750 or 3 consultations, instead of an unlimited outpatient option achieves this.

6-Week Wait

If an employee needs inpatient treatment, the insurer checks the NHS waiting list. If the wait is longer than 6 weeks, the insurer covers private treatment. Otherwise, the procedure is done through the NHS.

Hospital List

Choose a standard hospital list over a London hospital’s list to reduce costs.

Additional Cover Options

Exclude extras like private GP if virtual GP services are already included as standard. Some insurance providers offer mental health support and therapies as complementary.

Underwriting

Opt for tiered underwriting instead of the medical history disregarded option, which may be more expensive. For instance, new joiners can have a moratorium, while management can have a medical history disregarded option.

Consider switching to another provider

By doing so, you can save up to 38% on your renewal premium. Shop around or consult with your broker to find more affordable health insurance coverage elsewhere. Health insurance brokers for small businesses can help you shop around and provide expert advice on finding the best deal.

Freedom Health Insurance

Freedom Health Insurance , a family-run company in the UK, provides cover for groups of any size, offering various underwriting options. They offer a basic plan with essential employee benefits similar to a cash plan, or you can customise a comprehensive package with optional features for small businesses:

• Out-patient treatments cover specialist fees, diagnostic tests, and physiotherapy.
• NHS Cash benefit provides compensation of up to £100 per day or £200 per night.
• A wide selection of hospitals and consultants for your convenience.
• Comprehensive cancer coverage.
• Accommodation in private hospital rooms for added comfort during treatment.

Choosing the right insurer ultimately depends on personal preferences and business needs. However, a wise approach would be to consult with a broker to gather extensive information. Leaving the negotiation process to our experts at Premier PMI allows you to focus on your business without added stress.

Why Choose Premier PMI for Your Small Business Health Insurance?

Choosing the right insurer ultimately depends on personal preferences and business needs. However, a wise approach would be to consult with a broker to gather extensive information. 

We specialise in health insurance for small companies, understanding the unique needs and challenges they face.

Expert Guidance and Quotes

Our health insurance brokers provide personalized small business health insurance quotes, ensuring you get the best coverage at competitive rates.

Comprehensive Coverage Options

Explore the best small business health insurance plans from leading providers, tailored to meet your company’s specific requirements.

Trusted Small Business Health Insurance Providers

We work with reputable insurers known for their reliability and customer satisfaction, giving you peace of mind.

Dedicated Support from Start to Finish

Receive attentive service from our team, guiding you through every step of the process with clarity and expertise.

Simplifying Your Health Insurance Needs

Let Premier PMI handle your health insurance needs so you can focus on running your small business effectively.

What customers say about us

Is business health insurance tax deductible.

Private health insurance premiums are considered a legitimate business expense. Therefore, if your limited company covers the cost of your medical insurance, you’re eligible to claim corporation tax relief on the premium amount. However, when employees get insurance as part of their benefits, it’s seen as a perk they have to pay tax on. So, employers have to report this benefit to HMRC using a form called P11D, and employees might see a bit of their salary go towards taxes because of it.

How does a company’s health insurance work?

Small business insurance typically works by offering coverage to your employees and providing access to medical services and treatments. You can choose to pay for this insurance yourself as a benefit to your employees, or you can deduct a portion of the insurance cost from your employees’ salaries. In either case, employees gain access to private healthcare benefits such as doctor visits, hospital stays, prescription medications, and other medical services, depending on the specifics of the insurance plan provided by the company.

Can I pay for health insurance through my limited company?

If you have a limited company, you can pay for the cost of your private medical insurance, whether you’re getting coverage just for yourself or for your staff as well. However, it’s important to think about how this choice might affect your taxes personally. You’ll want to weigh whether it’s better to pay for your medical insurance directly or have your company cover it.

What is the alternative to medical insurance?

If traditional medical insurance is too expensive, consider these alternatives:

• Health Cash Plan covers everyday health needs 
• Employee Assistance Programme offers mental health support 
• Group Income Protection provides sick pay and support for a faster return to work
• Critical Illness Cover aids employees dealing with critical illnesses 
• Dental care/optical coverage can be standalone or combined with other plans
• Life Insurance

Have any questions?

Send us a message and one of our dedicated advisors will contact you shortly.

Popular Health Insurance Guides

Guide to Private Health Insurance Costs in the UK

What is a GP referral and how to get it?

How is Comprehensive Health Insurance Different from Basic Health Insurance?

Why Should You Get Health Insurance at A Young Age?

How much does international health insurance cost?

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The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. This comes from two main sources.

First , we provide paid placements to advertisers to present their offers. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market.

Second , we also include links to advertisers’ offers in some of our articles. These “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor.

While we work hard to provide accurate and up to date information at the time of publication that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. You should always check with the product provider to ensure that information provided is the most up to date.

Best Private Health Insurance In The UK (2024) – Our Pick

Published: Jul 16, 2024, 1:46pm

Reviewed By

Important Disclosure: The content provided does not consider your particular circumstances and does not constitute personal advice. Some of the products promoted are from our affiliate partners from whom we receive compensation. Read More

If you require any personal advice, please seek such advice from an independently qualified financial advisor. While we aim to feature some of the best products available, this does not include all available products from across the market. Although the information provided is believed to be accurate at the date of publication, you should always check with the product provider to ensure that information provided is the most up to date. Read Less

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 also appeals to those who want a private room when they go into hospital, or the option to choose the specialist or consultant for their treatment.

There were 898,000 admissions to private hospitals in 2023, according to the latest data from the Private Health Information Network (PHIN). That’s 7% higher than in the previous year, with more people seeking to sidestep long NHS waiting lists.

Of these admissions 619,000 (69%) 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.

• Featured Partner

Our top private health insurers in the UK

Bupa: bupa by you, aviva: healthier solutions, the exeter: health+, aviva: health solutions, what is private health insurance, how does private health insurance work, what types of private medical insurance are there, how are private medical insurance premiums calculated, what does private health insurance cover, what isn’t covered under private health insurance, how much does private health insurance cost, do i need private medical insurance, can i get private health insurance if i have a pre-existing condition, what are the alternatives to private health insurance, methodology, frequently asked questions (faqs).

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Compare Private Health Insurance Quotes

Get fee-free quotes and advice from leading UK insurers.

We’ve compiled our pick of the best private health insurance companies based on research by our life and health insurance partner LifeSearch ( July 2024 ).

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 PHI cover.

Monthly premium

Cancer cover, dental cover.

75% of treatment costs up to £700 per year

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.

• 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

Up to £250 per year (£50 excess)

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.

• 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

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.

• More comprehensive mental health cover than some plans
• No dental cover

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.

BEST FOR LOW PREMIUM

£66.32 (family cover)

Cancer Cover

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.

• No cover for cancer
• Limited out-patient cover

BEST FOR COVERAGE

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.

• Parental accommodation included
• Cancer cover included
• NHS cash benefit for hospital stays
• No out-patient cover

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.

• In-patient and out-patient claims covered in full
• Includes cancer treatment

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.

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.

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 PHI 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:

• A fully medically underwritten policy , 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 underwriting means 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.

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.

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.

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 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 of term life insurance where 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.

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.

The top 10 procedures for private hospital admissions

Source: Private Health Information Network: Private Market Update 2024

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.

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.

“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

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 PHI cover).

Can I switch my private medical insurance provider?

You can switch to a different private medical insurer or policy at renewal. Many people choose to do this to try to reduce premium costs, as a different insurer may offer a better deal.

Bear in mind premiums will rise over time, as you age, and also due to inflation and increasing medical care costs. Any conditions you’ve developed while insured with another company also won’t be covered if you switch to a new policy as they’ll be considered pre-existing conditions.

In some cases if you stay with the same insurer for a number of years you can also build up a no claims record, which may help to keep your premiums down.

Can smokers get private medical insurance?

You can buy private medical insurance if you’re a smoker or vaper, but you’ll likely have to pay more for cover compared to non-smoking counterparts. That’s because smoking is seen as an increased risk for claiming on a health insurance policy.

Insurers will consider you to be a non-smoker at the point you’ve not used any nicotine products for at least one year.

How can I cut the cost of private health insurance?

Private health insurance can be expensive and costs increase over time. You can look for ways to keep premiums as low as possible by doing the following:

• shop around. Comparing insurers and different policies is a good way to find cover at a reasonable cost
• give up smoking. If you can, giving up smoking (and all nicotine products) will usually lead to a drop in premium costs, as smoking is viewed as higher risk by insurers. You’ll usually need to be completely nicotine-free for at least 12 months to be considered a non-smoker
• strip out any extras: lots of private health insurance plans allow you to remove parts of the cover that you feel you don’t need (this might be out-patient care and treatment, or complementary therapies, for example) to bring down your monthly premium. By tailoring a policy in this way you may be able to build a policy with cover for acute illnesses at a lower cost.

I am passionate about personal finance issues and helping consumers navigate the world of insurance, credit, savings and pensions. I have been a money journalist for almost two decades, including ten years on the award-winning personal finance desk at the Mail on Sunday.