How much does private health insurance cost in the UK?

If you live in the UK, you can get free healthcare from the NHS. However, for faster treatment, many people also buy private health insurance . This helps pay for treatment from private doctors and hospitals and gives you faster access to healthcare.

But how much does over 50s health insurance cost? And what factors affect the price? We explain the cost of private healthcare in the UK in our detailed guide.

How is the cost of health insurance calculated?

Several factors affect how much private health insurance costs. Firstly, the underwriting method chosen will impact your premiums. If you switch from another insurer, the Continued Personal Medical Exclusions (CPME) method will be applied, which is more expensive as it carries over your medical history. In contrast, opting for Full Medical History Underwriting (FMU) or a Moratorium  will be cheaper.

Other factors affecting the cost of health insurance fall into two categories. Some are to do with you and your personal circumstances, while others are related to the type of health insurance cover you choose.

Personal circumstances

Personal circumstances which can affect your health insurance costs include:

• Where you live: Healthcare prices vary across the UK, so your costs will depend on the care costs in your area.
• Lifestyle: Your habits, like smoking, drinking or exercising, can change your insurance prices. Some insurers, including Saga, won’t ask you any questions about lifestyle.
• Medical history: Insurers check your medical history, including any existing conditions or long-term illnesses. Serious health issues might increase your costs.
• BMI: Some insurers charge more if your Body Mass Index (BMI) is above a certain level.

Type of health insurance cover

The type of health insurance you choose affects the cost. Higher cover usually includes more benefits, which means a more expensive policy.

Does age impact the cost of health insurance?

Age can affect how much you pay for health insurance. As you get older, you might need more medical care, which can make your insurance more expensive. For example, health insurance for over 60s  might cost more than for those over 50.

However, age isn't the only factor that affects the cost of health insurance, and getting older doesn't always mean your insurance will be more expensive.

What causes the cost of health insurance to increase?

There are a few reasons why the cost of private health insurance might go up in the UK. If you've made claims on your health insurance before, your premium could be higher when you renew your policy compared to if you hadn't made any claims.

Also, health insurance costs can rise as medical technology advances. The money spent on developing new treatments and drugs can lead to higher insurance prices.

What is health insurance excess?

Health insurance excess is the amount you agree to pay for medical treatment before your insurance covers the rest. For example, if you choose a £200 excess, you'll pay that amount upfront when you need medical care. You decide this amount when getting a quote for your insurance.

The excess amount can affect your insurance cost. A higher excess might make your policy cheaper, but ensure it's an amount you can afford. Don't choose an unrealistic amount just to lower your insurance cost.