Business Health Insurance Optional Extras Which Are Worth the Money
TL;DR
As a UK business leader, you understand that a healthy, motivated team is your greatest asset. Offering private medical insurance (PMI) is a powerful statement of intent, but the options don't stop there. At WeCovr, an FCA-authorised broker that has helped arrange over 900,000 policies, we frequently guide companies through the crucial next step: choosing optional extras.
Key takeaways
- Chronic Condition: An illness that cannot be cured but can be managed, such as diabetes, asthma, or high blood pressure.
- Pre-existing Condition: Any ailment for which you have had symptoms, medication, or advice in a set period (usually 5 years) before the policy start date.
- Insurance-led: Covers a percentage of the cost of treatment, up to an annual limit.
- Cashback-led: Provides a fixed amount back for specific treatments (e.g., £60 for a check-up, £150 for a filling).
- Routine care: Check-ups, scale and polish, X-rays.
As a UK business leader, you understand that a healthy, motivated team is your greatest asset. Offering private medical insurance (PMI) is a powerful statement of intent, but the options don't stop there. At WeCovr, an FCA-authorised broker that has helped arrange over 900,000 policies, we frequently guide companies through the crucial next step: choosing optional extras.
Are dental, optical, and travel add-ons a savvy investment in your team's wellbeing and your company's bottom line, or are they an unnecessary expense? This definitive guide provides the cost-benefit analysis you need to make the right call.
A cost-benefit analysis of adding dental, optical, and travel cover to your company PMI policy. When does the ROI make sense?
Deciding whether to enhance your company's private health cover is more than a simple cost calculation. It's a strategic decision that impacts employee recruitment, retention, productivity, and overall morale.
A core PMI policy provides a fantastic safety net for serious, acute health issues. However, day-to-day health concerns—a painful tooth, worsening eyesight, or a medical issue abroad—are often what cause the most immediate disruption. Optional extras are designed to plug these gaps. The return on investment (ROI) makes sense when the cost of the add-on is outweighed by the tangible benefits of a healthier, happier, and more present workforce.
This analysis will break down the three most common extras—dental, optical, and travel—to determine when they are truly worth the money.
The Core of Business Health Insurance: What’s Included as Standard?
Before we analyse the extras, it's vital to understand what a standard business health insurance policy in the UK covers. This forms the foundation upon which you build your benefits package.
At its heart, UK private medical insurance is designed to cover the diagnosis and treatment of acute conditions. An acute condition is a disease, illness, or injury that is likely to respond quickly to treatment and lead to a full recovery.
Crucial Exclusion: It's essential to understand that standard PMI does not cover chronic or pre-existing conditions.
- Chronic Condition: An illness that cannot be cured but can be managed, such as diabetes, asthma, or high blood pressure.
- Pre-existing Condition: Any ailment for which you have had symptoms, medication, or advice in a set period (usually 5 years) before the policy start date.
A typical core company PMI policy will include:
| Coverage Type | What It Means | Example |
|---|---|---|
| In-patient | Treatment requiring an overnight stay in a hospital bed. This is the cornerstone of all PMI policies. | Surgery requiring an overnight hospital stay. |
| Day-patient | Treatment requiring a hospital bed for the day, but not overnight. | A colonoscopy or cataract surgery. |
| Out-patient | Consultations, diagnostic tests, and scans that don't require a hospital bed. Levels of cover vary widely. | Seeing a specialist consultant; having an MRI scan. |
| Cancer Cover | Comprehensive cover for the diagnosis and treatment of cancer is a key feature of modern PMI. | Chemotherapy, radiotherapy, and surgical procedures. |
| Mental Health | Most policies now offer some level of mental health support, though the extent can vary significantly. | Access to counselling or psychiatric consultations. |
| Digital GP | 24/7 access to a GP via phone or video call is now a common and highly valued feature. | Getting a prescription or referral from your sofa. |
These core benefits provide fast access to specialist care, bypassing NHS waiting lists for eligible conditions and giving your employees invaluable peace of mind.
Deep Dive: Is Dental Cover a Worthwhile Addition?
With NHS dental appointments becoming increasingly scarce and private treatment costs soaring, adding dental cover to your PMI is a benefit your employees will notice and appreciate.
The Problem It Solves
Dental pain is distracting and debilitating. A 2023 YouGov poll revealed that 1 in 5 people who tried to get an NHS dental appointment in the last year were unsuccessful. This leads to employees either suffering in silence (presenteeism), taking time off to find care (absenteeism), or facing unexpected bills of hundreds or even thousands of pounds.
What's Covered?
Dental add-ons typically fall into two categories:
- Insurance-led: Covers a percentage of the cost of treatment, up to an annual limit.
- Cashback-led: Provides a fixed amount back for specific treatments (e.g., £60 for a check-up, £150 for a filling).
Cover is usually tiered, but often includes:
- Routine care: Check-ups, scale and polish, X-rays.
- Restorative treatment: Fillings, crowns, root canals.
- Dental emergencies: Immediate treatment for pain or injury.
- Sometimes extras: Orthodontics and dental implants (usually on higher-tier plans with specific limits).
Cost-Benefit Analysis
- Cost: Expect to add between £15 to £30 per employee, per month.
- Benefit (ROI):
- Reduced Absence: Prevents minor dental issues from escalating into emergencies that require time off work. The Office for National Statistics (ONS) consistently lists "minor illnesses" (which include dental problems) as a leading cause of sickness absence.
- Enhanced Recruitment: In a competitive job market, a benefits package that includes dental is a significant differentiator.
- Improved Wellbeing: Removes the financial barrier to preventative care, leading to better long-term health and reduced anxiety about dental costs.
- High Engagement: Unlike some benefits, dental cover is something a high proportion of staff will actively use and value each year.
When Does It Make Sense?
Dental cover offers a strong ROI for businesses that:
- Employ a younger demographic: Younger staff highly value practical, preventative benefits they can use regularly.
- Operate in areas with poor NHS dental provision: It becomes a near-essential service for your team.
- Want to build a reputation as a top-tier employer: It's a clear signal that you care about your employees' holistic wellbeing.
Insider Adviser Tip: While integrated dental cover is convenient, sometimes a standalone group dental plan can offer more comprehensive limits or better value. An expert broker like WeCovr can analyse both options to find the most cost-effective solution for your business.
Examining the Case for Optical Cover
In an age dominated by screens, looking after your team's eyesight is not just a perk; it's a productivity imperative.
The Problem It Solves
Prolonged screen use leads to Computer Vision Syndrome, with symptoms like eye strain, headaches, and blurred vision, all of which directly impact concentration and work quality. Furthermore, employers have a legal duty of care under the Health and Safety (Display Screen Equipment) Regulations 1992 to provide and pay for eye tests for DSE users if they request one.
What's Covered?
Optical cover is almost always a cashback benefit. It provides a fixed contribution towards:
- Eye tests: Typically covering the full cost of a standard test (e.g., up to £60).
- Glasses or contact lenses: A set amount towards the cost of new eyewear, usually on an annual or biennial basis (e.g., £150 - £250).
Cost-Benefit Analysis
- Cost: This is one of the most affordable extras, typically adding £5 to £15 per employee, per month.
- Benefit (ROI):
- Legal Compliance: Helps you meet your DSE obligations in a structured and beneficial way.
- Productivity Boost: Reduces headaches and eye strain, leading to a more focused and efficient workforce.
- Universal Appeal: A large percentage of the working population requires vision correction, making this a highly utilised and visible benefit.
- Low-Cost, High-Impact: For a relatively small outlay, you provide a tangible benefit that saves every eligible employee money each year.
When Does It Make Sense?
Optical cover is a near no-brainer for companies where:
- The majority of employees are office-based or work extensively with screens.
- You are looking for a cost-effective way to enhance your benefits package.
- You want to promote a culture of proactive health and wellness.
Adviser's Take: Employees love optical cover. While the allowance may not cover a pair of high-end designer frames in full, it makes them significantly more affordable. It's a simple, easy-to-understand perk that delivers immediate value.
Unpacking Business Travel Insurance as a PMI Add-On
For any business with employees who travel, ensuring they are protected abroad is a fundamental duty of care. Integrating travel insurance with your PMI policy can be an efficient and comprehensive solution.
The Problem It Solves
Arranging travel insurance on a per-trip basis is an administrative headache and can lead to gaps in cover. A medical emergency abroad can be astronomically expensive and incredibly stressful for both the employee and the company. A group policy ensures consistent, reliable protection.
What's Covered?
This is far more than a standard holiday policy. Cover typically includes:
- Emergency medical and dental treatment abroad.
- Medical evacuation and repatriation back to the UK.
- 24/7 multilingual emergency assistance helplines.
- Standard travel protections: Cover for cancellation, curtailment, lost baggage, and personal money.
A key variable is whether the policy covers business travel only or extends to cover employees' leisure travel as well, sometimes even including their families. The latter is a premium-level benefit.
Cost-Benefit Analysis
- Cost: Highly variable. It depends on travel frequency, destinations (e.g., worldwide vs. Europe, inclusion of USA/Canada), and whether leisure travel is included.
- Benefit (ROI):
- Duty of Care: The primary ROI is fulfilling your legal and moral obligation to keep your travelling employees safe.
- Administrative Efficiency: Dramatically simplifies processes compared to managing individual policies. One policy, one renewal date.
- Cost Savings: A group policy is almost always more cost-effective than a series of individual policies for frequent travellers.
- Peace of Mind: For senior management, knowing your team is comprehensively covered by a trusted medical provider is invaluable.
When Does It Make Sense?
Business travel insurance is essential, not optional, for any company with employees who travel overseas for work. It makes sense to add it to your PMI if:
- You have sales teams, executives, or technical staff who travel internationally.
- You want to streamline your insurance administration under a single provider.
- You want to offer a top-tier benefit by extending cover to personal holidays, making your company a highly attractive place to work.
WeCovr Insight: We can help you model the costs. For some SMEs with infrequent travel, a standalone annual group travel policy might be cheaper. For companies with regular travellers, integrating it with PMI often provides better value and seamless medical support. We'll run the comparison for you.
Other Notable PMI Extras to Consider
Beyond the main three, other add-ons can significantly enhance your package:
- Enhanced Mental Health Cover: While basic cover is often standard, enhanced options provide faster access to psychiatrists and a broader range of therapies. In today's climate, this is one of the most sought-after benefits.
- Therapies Cover: This includes physiotherapy, osteopathy, and chiropractic treatment. With musculoskeletal issues being a top reason for sickness absence, this extra can directly reduce time off and improve employee comfort and productivity.
- Employee Assistance Programme (EAP): Often included, but always check. An EAP provides a 24/7 confidential helpline for staff to discuss any issue, from financial worries to mental health struggles. It's a low-cost, high-impact tool for supporting your team's overall wellbeing.
The Financials: How Do These Extras Affect Premiums and Tax?
Understanding the precise financial impact is key to making an informed decision.
Estimated Premium Impact
This table provides a rough guide to the monthly cost increase per employee. Final costs will depend on your specific group demographics, industry, and chosen level of cover.
| Optional Extra | Estimated Monthly Cost Per Employee | Value Proposition |
|---|---|---|
| Dental Cover | £15 - £30 | High-value, high-engagement, reduces absence. |
| Optical Cover | £5 - £15 | Low-cost, high-impact, aids productivity and DSE compliance. |
| Travel Insurance | Highly Variable (£10 - £50+) | Essential for travelling staff, fulfils duty of care. |
| Enhanced Mental Health | £4 - £10 | Addresses a critical area of employee wellbeing. |
| Therapies Cover | £5 - £15 | Directly tackles a leading cause of sickness absence. |
Tax Implications
This is a critical area that is often misunderstood.
- For the Business: The premiums your company pays for business health insurance (including the extras) are generally considered an allowable business expense. This means they can be offset against your corporation tax bill, reducing the net cost.
- For the Employee: Private medical insurance is a 'benefit in kind'. This means it is treated as part of the employee's income, and they will have to pay income tax on the value of the premium. The company is responsible for reporting this to HMRC on a P11D form for each employee who receives the benefit. It's crucial to communicate this clearly to your staff so there are no surprises.
How to Make the Right Decision for Your Business
Follow this strategic, four-step process to choose the right extras for your team.
- Analyse Your Team: Don't guess what they want. Use anonymous surveys to ask what benefits they would value most. Analyse your workforce demographics—age, role types (desk-based vs. manual), family status, and travel frequency.
- Benchmark Your Industry: What are your direct competitors offering? To attract and retain the best talent, your benefits package needs to be competitive.
- Calculate the True ROI: Look beyond the monthly premium. Consider the cost of a single day of lost productivity, the cost of recruiting a new team member, and the value of a positive company culture. Often, the cost of the benefit is far less than the cost of the problem it solves.
- Speak to an Expert Broker: This is the most important step. A specialist private medical insurance broker like WeCovr does the hard work for you. We use our market knowledge and technology to:
- Compare policies and extras from all leading UK insurers.
- Model different cost scenarios for your specific business.
- Provide independent advice on which extras offer the best value for your unique needs.
- Manage the entire setup process, all at no extra cost to you.
The WeCovr Advantage: More Than Just a Policy
Choosing WeCovr as your PMI partner gives you more than just a great insurance deal. We believe in providing holistic value that supports your business and your employees' health.
When you arrange your company PMI with us, you get:
- Expert, Unbiased Advice: As an FCA-authorised broker, our loyalty is to you, not the insurer. We find the best fit for your budget and goals.
- Exclusive Wellness Perks: Your employees gain complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app, helping them build healthy habits.
- Multi-Policy Discounts: When you take out PMI or Life Insurance with us, we can offer attractive discounts on other forms of business or personal cover.
Our high customer satisfaction ratings are a testament to our commitment to providing clear, effective, and valuable solutions for UK businesses.
Ready to design the perfect, cost-effective health benefits package for your team? Let's find out which optional extras are truly worth the money for you.
Are optional extras subject to the same underwriting as the core PMI policy?
Is it cheaper to buy standalone dental or travel insurance instead of adding it to PMI?
Can I offer different extras to different groups of employees?
Do PMI extras cover pre-existing conditions?
Related guides
Why private medical insurance and how does it work?
What is Private Medical Insurance?
Private medical insurance (PMI) is a type of health insurance that provides access to private healthcare services in the UK. It covers the cost of private medical treatment, allowing you to bypass NHS waiting lists and receive faster, more convenient care.How does it work?
Private medical insurance works by paying for your private healthcare costs. When you need treatment, you can choose to go private and your insurance will cover the costs, subject to your policy terms and conditions. This can include:• Private consultations with specialists
• Private hospital treatment and surgery
• Diagnostic tests and scans
• Physiotherapy and rehabilitation
• Mental health treatment
Your premium depends on factors like your age, health, occupation, and the level of cover you choose. Most policies offer different levels of cover, from basic to comprehensive, allowing you to tailor the policy to your needs and budget.
Questions to ask yourself regarding private medical insurance
Just ask yourself:👉 Are you concerned about NHS waiting times for treatment?
👉 Would you prefer to choose your own consultant and hospital?
👉 Do you want faster access to diagnostic tests and scans?
👉 Would you like private hospital accommodation and better food?
👉 Do you want to avoid the stress of NHS waiting lists?
Many people don't realise that private medical insurance is more affordable than they think, especially when you consider the value of faster treatment and better facilities. A great insurance policy can provide peace of mind and ensure you receive the care you need when you need it.
Benefits offered by private medical insurance
Private medical insurance provides numerous benefits that can significantly improve your healthcare experience and outcomes:Faster Access to Treatment
One of the biggest advantages is avoiding NHS waiting lists. While the NHS provides excellent care, waiting times can be lengthy. With private medical insurance, you can often receive treatment within days or weeks rather than months.
Choice of Consultant and Hospital
You can choose your preferred consultant and hospital, giving you more control over your healthcare journey. This is particularly important for complex treatments where you want a specific specialist.
Better Facilities and Accommodation
Private hospitals typically offer superior facilities, including private rooms, better food, and more comfortable surroundings. This can make your recovery more pleasant and potentially faster.
Advanced Treatments
Private medical insurance often covers treatments and medications not available on the NHS, giving you access to the latest medical advances and technologies.
Mental Health Support
Many policies include comprehensive mental health coverage, providing faster access to therapy and psychiatric care when needed.
Tax Benefits for Business Owners
If you're self-employed or a business owner, private medical insurance premiums can be tax-deductible, making it a cost-effective way to protect your health and your business.
Peace of Mind
Knowing you have access to private healthcare when you need it provides invaluable peace of mind, especially for those with ongoing health conditions or concerns about NHS capacity.
Private medical insurance is particularly valuable for those who want to take control of their healthcare journey and ensure they receive the best possible treatment when they need it most.
Important Fact!
We can look at a more suitable option mid-term!
Why is it important to get private medical insurance early?
👉 Many people are very thankful that they had their private medical insurance cover in place before running into some serious health issues. Private medical insurance is as important as life insurance for protecting your family's finances.👉 We insure our cars, houses, and even our phones! Yet our health is the most precious thing we have.
Easily one of the most important insurance purchases an individual or family can make in their lifetime, the decision to buy private medical insurance can be made much simpler with the help of FCA-authorised advisers. They are the specialists who do the searching and analysis helping people choose between various types of private medical insurance policies available in the market, including different levels of cover and policy types most suitable to the client's individual circumstances.
It certainly won't do any harm if you speak with one of our experienced insurance experts who are passionate about advising people on financial matters related to private medical insurance and are keen to provide you with a free consultation.
You can discuss with them in detail what affordable private medical insurance plan for the necessary peace of mind they would recommend! WeCovr works with some of the best advisers in the market.
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