Our NHS is a proud British institution and in hard times – especially during the pandemic – it truly reminds us of the values we stand for as a nation.
However, the sad reality is that the NHS has become oversubscribed, leaving many patients dissatisfied with the treatment they receive and how long they have to wait for it. While millions access life-saving care through the NHS every day, it’s understandably frustrating for those who feel they can’t get what they need from the service, especially in life-threatening situations.
It’s for this reason that the Guardian reports 1 in 8 Brits now has PMI. When spouses, partners, and children are included in the equation, a total of 8 million people have access to it, representing 11.8% of the population. This is the highest level since 2008, before the financial crisis prompted many private firms to downgrade their employee benefits.
As an IFA, you may have already noticed your clients asking more questions about PMI. Queries you might have heard include:
- Is PMI financially worth it?
- How long will it last?
- Should I just pay for private medical care out of pocket?
- Can my family benefit too?
Here’s what you need to know about the rise in PMI and what it means for your clients.
Private medical insurance could be a significant expense for your clients
If you have very wealthy clients, they may be able to easily afford PMI. But clients with regular incomes and “normal” lives might find it an expense they need to consider carefully.
At its cheapest, typically for young people, PMI costs around £50 a month (sometimes slightly less). Of course, as with all protection, the older your clients are and the more health issues they have, this will go up. It could even set your clients back more than £100 a month if they choose to cover their family and have pre-existing conditions such as diabetes.
While some clients may find PMI worth having for their peace of mind, it’s important to discuss the long-term implications of this expense on their financial plan.
Private medical insurance doesn’t cover everything, can lapse, and some claims might be rejected
If they’re exploring their PMI options, it’s important to make your clients fully aware of the risks and drawbacks.
For instance, PMI doesn’t always cover:
- Ongoing or pre-existing conditions including HIV/AIDs, diabetes, or epilepsy
- Organ transplantation procedures
- Cosmetic surgery
- Pregnancy-related care
- Injuries resulting from extreme sports.
This will obviously vary between providers, but it’s worth keeping in mind for clients who are likely to need healthcare for any of the above.
What’s more, much like critical illness, life insurance, and income protection, most policies won’t cover a person for life. They may still need to foot the bill for later-life health problems and care, if they don’t want to use the NHS or can’t access care for free.
Finally, there is of course the chance that their claim could be rejected.
Exploring all of these drawbacks with clients means they can make an informed decision based on the risks involved as well as the potential benefits of PMI.
Your clients deserve peace of mind – and private medical insurance might be just the ticket
While there are drawbacks and exclusions to consider, PMI may indeed be the right choice for your clients to gain peace of mind going forward.
Many policies would allow your clients to access:
- Same-day GP appointments that last longer than the standard 10 minutes
- Referrals to specialists within a short time frame
- More comfortable hospital visits in private facilities
- Supplementary treatments such as physiotherapy.
So, if your client was diagnosed with cancer and needed urgent treatment, had a medical emergency that required ongoing care, or simply wanted to talk to a GP on the day they’re ill, this might all be made possible by PMI.
Of course, there is the option that your clients pay for private medical care out of pocket instead. If they have substantial savings and investments, and know their premiums would be high if they took out cover, it could be worth weighing up the risks versus the reward of only paying when they need to.
Private care is not always “better” than NHS care
It’s worth reminding your clients that scaremongering news stories about “NHS disasters” might not be good for their mental health.
While PMI can offer real peace of mind, and many clients might benefit from it, you may wish to reassure them that it’s not an absolute essential. A personalised look at their wealth circumstances and health needs, rather than listening to media noise, could be more constructive for them.
What’s more, some NHS hospitals may offer faster and better care than private hospitals. While some prefer to have the option to go private, it would be a generalisation to assume that this is always where the “better doctors” are.
Get in touch
Here at Corbel Partners, we stay up to date with all the latest developments in our sector. If you’re looking for a network that doesn’t stifle your independence and helps you serve clients in a way they deserve, speak to us. We’re currently accepting applications for new members.
We’re also open to acquiring new businesses both internally and externally, so if you’re getting close to retirement and want your clients to remain in safe hands, get in touch.
Email hello@corbelpartners.co.uk or call 01925 637891.
Please note
This article is for general information only and does not constitute advice.
Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.