Private Health Insurance - cost

Costs depend on what type of plan you choose and whether other family members are included. The more comprehensive the range of treatments covered, the more expensive it is. Also, if you want to be treated in top private hospitals or the London teaching hospitals, it will cost you more.

Many policies come in three classes, depending largely on your choice of hospital. Remember that premiums for private health insurance tend to rise faster than inflation.

If you want to save money you should consider a Budget policy, which applies only if the treatment you need is not available on the NHS within a set period.

Other ways of keeping costs down include paying a larger portion of the claim than normal, or by agreeing to accept a restricted choice of hospitals.

Some policies offer no-claims bonuses that can help limit the increase in your premium. This gives you an incentive not to make minor claims, which always account for the majority of claims.

You could also try to persuade your employer to offer it as a perk. That way, administration costs are kept to a minimum and the employer may well be able to negotiate bulk discounts or more generous terms.

Around half the people with private medical insurance get it as a perk. Bosses prefer it because it means that performance of key staff is not hit by nagging conditions that could be quickly treated.

Private medical insurance is taxed as a perk if you earn above a certain amount a year.

If your private medical insurance is included as part of your employment contract and you retire you will have to renegotiate your policy, but you are likely to qualify for discounts. Bear in mind that the over 60s no longer get tax relief on private medical insurance.