TL;DR
As an FCA-authorised expert broker that has helped arrange over 900,000 policies, WeCovr understands the UK private medical insurance market inside and out. This article offers our expert comparison of two specialist mutual insurers, National Friendly and Freedom Health Insurance, to help you make an informed choice for 2025. Our expert breakdown of two specialist PMI mutual insurers in 2025 When you think of private medical insurance (PMI) in the UK, big names like Bupa, Aviva, and AXA probably spring to mind.
Key takeaways
- No Shareholders to Please: Traditional insurers are often PLCs, accountable to shareholders who expect a financial return on their investment. Mutuals have no such external pressure.
- Profits are Reinvested: Any surplus profits are not paid out as dividends to shareholders. Instead, they are reinvested back into the business. This can lead to lower premiums, enhanced benefits, or improved customer service.
- Focus on Member Value: The primary goal is to provide the best possible value and service to members. This often fosters a culture of loyalty and a long-term perspective, rather than a focus on short-term profits.
- A Sense of Community: Many members feel a stronger connection to a mutual, knowing they are part of an organisation that exists solely for their benefit.
- Full In-patient and Day-patient Treatment: This covers costs for surgery, treatment, and hospital stays where you need a bed, either overnight (in-patient) or for the day (day-patient).
As an FCA-authorised expert broker that has helped arrange over 900,000 policies, WeCovr understands the UK private medical insurance market inside and out. This article offers our expert comparison of two specialist mutual insurers, National Friendly and Freedom Health Insurance, to help you make an informed choice for 2025.
Our expert breakdown of two specialist PMI mutual insurers in 2025
When you think of private medical insurance (PMI) in the UK, big names like Bupa, Aviva, and AXA probably spring to mind. While these giants dominate the landscape, a closer look reveals a vibrant market of specialist insurers offering a different, often more personal, approach.
Among these are National Friendly and Freedom Health Insurance. Both are "mutual" organisations, a structure that fundamentally changes their relationship with you, the policyholder. Instead of serving external shareholders, they are owned by and run for their members.
But what does this mean for your health cover? In this comprehensive guide, we'll break down everything you need to know about these two specialist providers, comparing their ethos, policies, benefits, and suitability for different needs. By the end, you'll have a crystal-clear understanding of which might be the right fit for you and your family.
What is a Mutual Insurer and Why Does it Matter?
Before we dive into the specifics of each provider, it's crucial to understand the "mutual" model. It's a core part of their identity and a key reason you might choose them over a standard public limited company (PLC).
A mutual insurer, or a friendly society like National Friendly, is an organisation owned entirely by its policyholders, who are known as 'members'.
Here’s why that’s important for you:
- No Shareholders to Please: Traditional insurers are often PLCs, accountable to shareholders who expect a financial return on their investment. Mutuals have no such external pressure.
- Profits are Reinvested: Any surplus profits are not paid out as dividends to shareholders. Instead, they are reinvested back into the business. This can lead to lower premiums, enhanced benefits, or improved customer service.
- Focus on Member Value: The primary goal is to provide the best possible value and service to members. This often fosters a culture of loyalty and a long-term perspective, rather than a focus on short-term profits.
- A Sense of Community: Many members feel a stronger connection to a mutual, knowing they are part of an organisation that exists solely for their benefit.
Choosing a mutual can mean opting for an insurer whose values are more aligned with your own: stability, member-centric service, and fair value.
A Closer Look at National Friendly: A 150+ Year Legacy
With a history stretching back to 1868, National Friendly is one of the UK's most established friendly societies. This legacy is built on a foundation of trust, community, and providing reliable financial and health support to its members through generations.
Who is National Friendly?
National Friendly began as a mutual to help working people save for sickness, old age, and life's unexpected events. Today, it continues this ethos, offering a range of products including savings, investments, and of course, private medical insurance. Their approach is rooted in tradition and stability, appealing to those who value a provider with a long and proven track record of putting its members first.
National Friendly's Core PMI Offering: "MyPMI"
National Friendly's main private health insurance product is called MyPMI. It is designed to be straightforward and comprehensive, providing a solid foundation of cover that you can then build upon.
The policy is structured with essential core cover and optional add-ons to enhance your protection.
MyPMI Core Cover includes:
- Full In-patient and Day-patient Treatment: This covers costs for surgery, treatment, and hospital stays where you need a bed, either overnight (in-patient) or for the day (day-patient).
- Comprehensive Cancer Cover: Cancer care is included as standard. This covers diagnosis and treatment, including surgery, chemotherapy, and radiotherapy. It's a vital component of any robust PMI policy.
- NHS Cash Benefit: If you choose to have eligible in-patient treatment on the NHS instead of privately, the policy pays you a cash amount for each night you spend in an NHS hospital.
Optional Extras for MyPMI
To tailor the policy to your needs, you can choose from several optional benefits:
- Out-patient Cover: This is one of the most popular additions. It covers specialist consultations, diagnostic tests (like MRI and CT scans), and procedures that don't require a hospital bed. National Friendly offers different levels of financial limits for this.
- Therapies Cover: This adds cover for treatment from physiotherapists, osteopaths, and chiropractors.
- Mental Health Cover: Provides access to psychiatric treatment, adding an essential layer of support for your mental wellbeing.
The Critical Rule: Pre-existing and Chronic Conditions
It is absolutely vital to understand a fundamental rule of all standard UK private medical insurance, including policies from National Friendly and Freedom.
PMI is designed to cover acute conditions that arise after your policy begins.
An acute condition is a disease, illness, or injury that is likely to respond quickly to treatment and return you to your previous state of health. Examples include joint replacements, hernia repairs, or removing cataracts.
PMI does not cover:
- Pre-existing Conditions: Any medical condition for which you have experienced symptoms, received medication, advice, or treatment in the years before your policy started (typically the last 5 years).
- Chronic Conditions: Long-term illnesses that cannot be cured, only managed. This includes conditions like diabetes, asthma, high blood pressure, and arthritis.
PMI is your partner for new, eligible health problems, providing fast access to diagnosis and treatment. It is not a replacement for the NHS, which continues to provide care for emergencies, chronic conditions, and pre-existing issues.
A Closer Look at Freedom Health Insurance: Modern and Flexible
Founded in 2003, Freedom Health Insurance is a much younger organisation than National Friendly, but it has quickly carved out a niche for itself as a modern, flexible, and customer-focused mutual insurer.
Who is Freedom Health Insurance?
Freedom was created to offer a real alternative in the UK private medical insurance market. Its ethos is centred on choice and transparency, empowering customers to build a policy that precisely matches their needs and budget. As a mutual, its profits are also reinvested for the benefit of its members, but its approach is distinctly contemporary and modular.
Freedom's Core PMI Offering: "Freedom Elite"
Freedom's flagship policy, Freedom Elite, is the epitome of customisable health insurance. It starts with a basic, affordable core and allows you to add a wide range of benefits, giving you complete control over your level of cover and your premium.
Freedom Elite Core Cover includes:
- In-patient and Day-patient Treatment: Just like National Friendly, this is the foundation of the policy, covering hospital fees, specialist fees, and diagnostic tests while you are admitted to hospital.
- NHS Cash Benefit: Also offers a cash payment if you opt for NHS treatment for a condition that would have been covered privately.
- Cancer Cover (Optional but Recommended): Unlike National Friendly's MyPMI, extensive cancer cover is an optional add-on with Freedom Elite. While some basic cancer surgeries might be covered under the core plan, comprehensive cover for chemotherapy, radiotherapy, and ongoing monitoring is a separate module. This is a key difference to be aware of.
Unmatched Flexibility with Optional Extras
This is where Freedom truly shines. You can construct your policy with a wide array of add-ons:
- Out-patient Cover: Choose from multiple levels of cover, from a basic £500 limit for consultations and tests up to full cover.
- Alternative Therapies: Add cover for physiotherapy, osteopathy, chiropractic treatment, and more.
- Mental Health Cover: An optional benefit to cover specialist consultations and treatment for mental health conditions.
- Dental and Optical Cover: A less common PMI benefit, this allows you to claim back costs for routine dental check-ups, treatment, and optical expenses.
- Private GP, Dental & Optical: A premium add-on that offers even more comprehensive everyday health support.
This 'à la carte' menu means you only pay for the cover you actually want. If you are young, healthy, and primarily concerned with cover for major surgery, you can stick to a lean policy. If you want all-encompassing protection, you can build a fully comprehensive plan.
Head-to-Head Comparison: National Friendly vs. Freedom Health Insurance
To help you see the differences at a glance, here is a direct comparison of the key features of each insurer's main PMI policy.
| Feature | National Friendly (MyPMI) | Freedom Health Insurance (Freedom Elite) | Our Expert Insight |
|---|---|---|---|
| Company Type | Friendly Society (Mutual) | Mutual Insurer | Both are owned by and run for their members, prioritising member value over shareholder profit. |
| Core Philosophy | Traditional, stable, comprehensive core. | Modern, flexible, modular. | National Friendly offers security in simplicity. Freedom offers empowerment through choice. |
| Core Cover | In-patient, Day-patient, Comprehensive Cancer Cover. | In-patient, Day-patient. | Crucial difference: National Friendly includes full cancer cover as standard. With Freedom, it's a highly recommended but optional extra. |
| Policy Customisation | Moderate. Add on out-patient, therapies, and mental health. | Very High. A wide menu of options including dental & optical. | Freedom is ideal for those who want to fine-tune every aspect of their policy and budget. |
| Mental Health Cover | Available as an optional add-on. | Available as an optional add-on. | Both insurers recognise the importance of mental health, offering it as a key optional benefit. |
| Hospital Access | Uses a defined list of UK hospitals. | Offers a choice of hospital lists, including options for full UK coverage. | Freedom may offer slightly more flexibility in where you can be treated, depending on the option you choose. |
| Underwriting | Moratorium or Full Medical Underwriting. | Moratorium or Full Medical Underwriting. | Both offer standard industry options. An expert broker at WeCovr can explain which is best for your circumstances. |
| Digital Tools | More traditional approach; focus is on personal service. | More modern feel, with an online portal for managing your policy. | If a slick app is a priority, neither are market leaders, but Freedom has a slight edge in digital-first services. |
| Best For... | Those wanting a simple, reliable policy from a long-established provider. | Those wanting maximum control to build a bespoke policy tailored to their exact needs and budget. | Your choice depends on whether you prefer "all-in-one" simplicity or "build-your-own" flexibility. |
Understanding Key PMI Terms: Underwriting and Excess
When you buy private medical insurance, you'll encounter terms like 'underwriting' and 'excess'. They can seem complex, but they are simple concepts that have a big impact on your policy.
What is Underwriting?
Underwriting is simply the process an insurer uses to assess your health and medical history to decide on the terms of your policy. For individual PMI, there are two main types:
-
Moratorium (Mori) Underwriting: This is the most common and straightforward option. You don't have to declare your full medical history upfront. Instead, the insurer automatically excludes treatment for any medical conditions you've had symptoms, advice, or treatment for in the 5 years before the policy started. These exclusions are then reviewed after you've held the policy for 2 continuous years. If you remain symptom, advice, and treatment-free for that condition during those 2 years, it may become eligible for cover. It's a "wait and see" approach.
-
Full Medical Underwriting (FMU): With FMU, you complete a detailed health questionnaire when you apply. The insurer reviews your medical history and lists any specific conditions that will be permanently excluded from your policy from day one. This takes more effort at the start, but it provides complete clarity about what is and isn't covered.
How Does Policy Excess Work?
The 'excess' is the amount you agree to pay towards the cost of a claim each year. For example, if you have a policy with a £250 excess and you make a claim for a procedure costing £3,000, you would pay the first £250, and your insurer would pay the remaining £2,750.
The key thing to remember is the relationship between excess and premium:
A higher excess will result in a lower monthly or annual premium.
Choosing a higher excess (e.g., £500 or £1,000) is an effective way to make your private health cover more affordable, provided you are comfortable paying that amount in the event of a claim.
Who is National Friendly Best For?
You might favour National Friendly if:
- You value tradition and stability. Their 150+ year history provides a sense of security that is hard to match.
- You want a straightforward, robust policy. With comprehensive cancer cover included as standard, MyPMI provides a strong foundation without overwhelming you with choices.
- You prefer a simple, all-in-one solution. If you're not looking to tweak every detail and want to know you have solid protection for the big things, National Friendly is an excellent choice.
Who is Freedom Health Insurance Best For?
Freedom Health Insurance could be the perfect fit if:
- You want ultimate control and flexibility. Their modular approach allows you to design a policy that fits your life and budget perfectly.
- You are budget-conscious and want to manage costs. By only selecting the benefits you need, you can avoid paying for cover you're unlikely to use. For example, you might add comprehensive out-patient cover but forgo dental and optical.
- You want options that go beyond standard PMI. The ability to add benefits like dental and optical cover is a major plus for those seeking more holistic health protection.
The Importance of Using a Specialist PMI Broker like WeCovr
As you can see, even when comparing just two specialist insurers, the differences can be significant. Trying to navigate the entire market—with its dozens of providers and hundreds of policy combinations—can be confusing and time-consuming.
This is where an independent broker like WeCovr provides invaluable help.
- Expert, Impartial Advice: We are not tied to any single insurer. Our job is to understand your needs and find the best policy for you from across the market. Our team has deep knowledge of providers like National Friendly and Freedom.
- No Cost to You: Our service is free for you to use. We are paid a commission by the insurer you choose, which does not affect the price you pay.
- Market Access: We have access to a wide range of policies, including some that may not be available directly to the public.
- Save Time and Hassle: We do the research, compare the quotes, and explain the small print, so you don't have to. We present you with clear, easy-to-understand options.
- Added Value: When you arrange a policy through WeCovr, you also get complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero, to support your health goals. Furthermore, customers who purchase PMI or life insurance often qualify for discounts on other types of cover, like home or travel insurance.
Our high customer satisfaction ratings are a testament to our commitment to finding the right cover for our clients at the right price.
Beyond Insurance: A Holistic Approach to Your Health in 2025
Private medical insurance is a powerful tool for taking control of your health, especially given the ongoing pressures on the NHS. As of mid-2024, the NHS waiting list in England remains stubbornly high, with millions waiting for consultant-led elective treatment (Source: NHS England). PMI provides a way to bypass these queues for eligible conditions.
However, true wellbeing goes beyond just having insurance. It's about building healthy habits into your daily life.
Simple Steps for a Healthier You
- Nourish Your Body: A balanced diet is fundamental. The NHS Eatwell Guide is a great resource. Focus on whole foods, fruits, vegetables, and lean proteins. Using an app like CalorieHero, which WeCovr provides to clients, can make tracking your nutrition simple and insightful.
- Stay Active: The UK Chief Medical Officers recommend at least 150 minutes of moderate-intensity activity (like a brisk walk or cycling) or 75 minutes of vigorous activity (like running) per week. Find an activity you enjoy to make it a sustainable habit.
- Prioritise Sleep: Aim for 7-9 hours of quality sleep per night. It's essential for physical repair, mental clarity, and emotional regulation. Create a relaxing bedtime routine and a dark, quiet, and cool sleeping environment.
- Manage Stress: Chronic stress impacts both mental and physical health. Incorporate mindfulness, meditation, or simple breathing exercises into your day. Make time for hobbies and connect with friends and family.
Taking these proactive steps can improve your quality of life and reduce your long-term risk of developing many health conditions.
Is private medical insurance worth it in the UK?
Can I get health insurance if I have a pre-existing condition?
How much does private health insurance from National Friendly or Freedom cost?
Why should I use a broker like WeCovr instead of going direct to an insurer?
Take the Next Step Towards Peace of Mind
Choosing between a traditional, stable provider like National Friendly and a modern, flexible insurer like Freedom Health Insurance is a significant decision. Both offer the unique benefits of the mutual model, but cater to different preferences.
The best way to find out which is right for you—and how they stack up against the rest of the market—is to speak with an expert.
Ready to find the right private health cover for you? Our expert team at WeCovr is here to help. Get your free, no-obligation quote today and compare policies from leading UK insurers, including specialists like National Friendly and Freedom.
Sources
- NHS England: Waiting times and referral-to-treatment statistics.
- Office for National Statistics (ONS): Health, mortality, and workforce data.
- NICE: Clinical guidance and technology appraisals.
- Care Quality Commission (CQC): Provider quality and inspection reports.
- UK Health Security Agency (UKHSA): Public health surveillance reports.
- Association of British Insurers (ABI): Health and protection market publications.
