Personal Insurance

Private medical insurance is often known as PMI, or more simply 'health insurance'. It pays for private essential treatments, including surgery, consultations, nursing and hospital care if you fall ill. They won't cover drug addiction, cosmetic surgery, 'regular' pregnancy or incurable conditions.

Private medical insurance can give peace of mind to individuals that they won't have to wait for the procedures or care they might need as the cost of private treatment will be covered. You'll either be treated privately in an NHS hospital or be booked into a private hospital.

There are two types of plan, known as fully underwritten and moratorium. Fully underwritten policies require you to disclose your full medical history to establish what will and won’t be covered. Moratoriums simply impose blanket exclusions on pre-existing conditions going back a set number of years.

Moratoriums are usually cheaper, but watch out – any disorder that subsequently surfaces won’t be covered if an examination shows it arose during the moratorium period.

Most private medical policies charge an excess - the portion of any insurance policy you must pay yourself. For those looking for more comprehensive cover, but who still want to keep costs down, one option is to choose a private medical insurance policy which offers a wider range of benefits but which enables you to select a higher excess.