TL;DR
Deciding on the right private medical insurance in the UK can feel complex, but at WeCovr, an FCA-authorised broker that has helped arrange over 900,000 policies, we make it simple. This guide will help you understand whether a family policy or individual plans are more cost-effective for your needs. Comparison of multi-person discounts for couples, families, and childrens policies When it comes to protecting your family's health, Private Medical Insurance (PMI) offers a valuable alternative to relying solely on the NHS, providing faster access to specialists and treatments.
Key takeaways
- Pre-existing conditions: Any medical condition you had signs or symptoms of, or sought advice or treatment for, before your policy started.
- Chronic conditions: Conditions that are long-term and cannot be cured, only managed. This includes things like diabetes, asthma, high blood pressure, and arthritis. While the initial diagnosis of a chronic condition might be covered, the ongoing, long-term management will not be.
- Single individuals.
- People whose employers do not offer a company health scheme.
- Family members who have specific, high-level cover requirements that differ from the rest of the family.
Deciding on the right private medical insurance in the UK can feel complex, but at WeCovr, an FCA-authorised broker that has helped arrange over 900,000 policies, we make it simple. This guide will help you understand whether a family policy or individual plans are more cost-effective for your needs.
Comparison of multi-person discounts for couples, families, and childrens policies
When it comes to protecting your family's health, Private Medical Insurance (PMI) offers a valuable alternative to relying solely on the NHS, providing faster access to specialists and treatments. A crucial question for many households is whether to purchase individual policies for each family member or to combine everyone under a single family plan.
The answer, in most cases, is that a family policy is significantly cheaper. Insurers actively encourage joint and family applications by offering attractive multi-person discounts. These discounts can make a substantial difference to your monthly premiums, alongside the major benefit of simplifying your admin with a single policy to manage.
However, the "cheapest" option isn't always the "best" one. The right choice depends on your family's unique circumstances, ages, and healthcare needs. In this article, we'll break down the pros and cons of each approach, look at real-world cost comparisons, and explore the factors that determine your final premium.
What is Private Medical Insurance (PMI)?
Before we dive into the cost comparison, let's clarify what PMI is and what it does. Private Medical Insurance is a type of insurance policy designed to cover the costs of private healthcare for 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. Examples include joint replacements, cataract surgery, hernia repairs, or treatment for infections.
The Golden Rule of PMI: What's Not Covered
It is absolutely vital to understand that standard UK private medical insurance does not cover:
- Pre-existing conditions: Any medical condition you had signs or symptoms of, or sought advice or treatment for, before your policy started.
- Chronic conditions: Conditions that are long-term and cannot be cured, only managed. This includes things like diabetes, asthma, high blood pressure, and arthritis. While the initial diagnosis of a chronic condition might be covered, the ongoing, long-term management will not be.
PMI is there to get you diagnosed and treated quickly for new, eligible conditions that arise after you take out your policy, helping you bypass potential NHS waiting lists.
Understanding Individual PMI Policies
An individual PMI policy is straightforward: it's a contract between you and an insurer that covers the healthcare costs for one person.
Who is it for?
- Single individuals.
- People whose employers do not offer a company health scheme.
- Family members who have specific, high-level cover requirements that differ from the rest of the family.
The cost of an individual policy is calculated based on a range of personal factors.
Key Factors Influencing Individual Premiums:
- Age: This is the single biggest factor. The older you are, the higher the statistical likelihood of you needing medical treatment, so premiums increase with age.
- Location: Where you live matters. Treatment costs are higher in major cities, particularly London and the South East, so policies for residents in these areas are more expensive.
- Smoker Status: Smokers pay more than non-smokers due to the increased health risks.
- Level of Cover: A basic policy covering only inpatient treatment will be much cheaper than a comprehensive plan that includes outpatient consultations, therapies, and mental health support.
Exploring Family & Couples PMI Policies
A family or couples policy, often called a joint policy, combines two or more people under a single plan. This typically includes a main policyholder and their dependants.
Who can be on a family policy?
- You and your partner: This includes married couples, civil partners, and cohabiting partners.
- Your children: Typically up to the age of 21, or sometimes 24 if they are still in full-time education. Children are added as dependants to the main policyholder's plan.
The primary advantage is cost savings through multi-person discounts and special offers for children. It also simplifies life with one set of documents, one renewal date, and one payment.
The Big Question: Is Family PMI Cheaper Than Individual Policies?
For the vast majority of couples and families, the answer is a resounding yes. Insurers incentivise people to join together. Let's look at why.
1. The 'Partner' or 'Multi-Person' Discount
Most leading UK PMI providers offer a discount when you add a second adult to a policy. This is often around 5%, but it can vary. While it may not sound like a huge number, it adds up over the year. Instead of paying for two full-price individual policies, you pay a slightly reduced rate for the second person.
2. The 'Free Children' Incentive
This is where the most significant savings are made for families. Many insurers have pricing structures designed to be highly attractive to parents. Common offers include:
- Pay for the first child, get the others free: You pay a premium for your eldest child, and any subsequent children are added to the policy at no extra cost.
- Free cover for newborns: Some insurers allow you to add a newborn baby to your policy for free for the first year.
These incentives mean that a family of four (two adults, two children) will almost always pay substantially less on a family plan than they would for four separate individual policies.
Cost Comparison: A Hypothetical Example
To illustrate the savings, let's look at a typical scenario for a family living outside London. These are illustrative costs and your actual quote from a PMI broker like WeCovr will depend on your specific details.
Our Family:
- Adult 1: 40-year-old non-smoker
- Adult 2: 38-year-old non-smoker
- Child 1: 8-year-old
- Child 2: 5-year-old
- Cover: Mid-range comprehensive plan with a £250 excess.
| Policy Type | Description | Estimated Monthly Cost | Total Annual Cost |
|---|---|---|---|
| Individual Policies | Adult 1 (£75/mo) + Adult 2 (£70/mo) + Child 1 (£30/mo) + Child 2 (£30/mo) | £205 | £2,460 |
| Family Policy | Both adults on a joint plan with a 5% discount, and a "pay for one child" offer. | £168 | £2,016 |
| Potential Saving | - | £37 per month | £444 per year |
As you can see, the family policy offers a significant saving of over £400 a year in this example. The discount on the second adult and the 'free' second child create a much more affordable overall premium.
Factors Influencing the Cost of Your PMI Premium
Whether you choose an individual or family plan, several key levers will determine your final price. Understanding these can help you tailor a policy to your budget.
| Factor | Impact on Premium | Explanation |
|---|---|---|
| Age & Health | High | Premiums increase with age. Your general health and lifestyle (e.g., smoking) are also major factors. |
| Location | Medium | Postcodes in and around London have the highest premiums due to more expensive private hospitals. |
| Level of Cover | High | Basic: Covers inpatient/day-patient care only. Comprehensive: Adds outpatient cover (scans, tests, consultations), therapies, and often mental health support. More cover = higher cost. |
| Excess | High | This is the amount you agree to pay towards a claim. A higher excess (e.g., £500 or £1,000) will significantly lower your premium. A £0 excess is the most expensive option. |
| Hospital List | Medium | Insurers offer different tiers of hospital lists. A plan with a limited local list is cheaper than one giving you access to premium central London hospitals. |
| Underwriting | N/A to cost, but vital | Moratorium: Easiest to set up. Excludes conditions you've had in the last 5 years. Full Medical Underwriting (FMU): You declare your full medical history. More admin upfront, but provides certainty on what's covered from day one. |
| No-Claims Discount | Medium | Similar to car insurance. For every year you don't claim, you get a discount on your renewal premium, up to a maximum level (often 60-75%). |
Working with an expert like WeCovr allows you to navigate these options effortlessly. We can model different scenarios for you, showing how adjusting the excess or hospital list can bring a policy within your budget without compromising on the core protection you need.
When Might Individual Policies Be a Better Option?
While family policies are usually the default choice for cost-saving, there are a few scenarios where separate individual policies might make more sense.
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Vastly Different Cover Needs: Imagine one partner wants a top-tier, all-inclusive policy with full mental health and dental cover, while the other is happy with a basic, inpatient-only plan. Most family policies apply the same level of cover to everyone. In this case, two separate policies tailored to individual needs could be more practical, even if slightly more expensive.
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Significant Age Gap: If there's a large age difference between partners (e.g., 20+ years), it's worth getting quotes for both a joint policy and two individual ones. The lower premium for the much younger partner on a solo plan might offset the loss of the multi-person discount, though this is rare.
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Complex Medical Histories: If one partner has a complicated medical history, keeping policies separate can sometimes be administratively simpler. However, remember the rule: pre-existing conditions won't be covered on a new policy anyway, regardless of whether it's individual or joint.
Special Considerations for Children's Policies
Protecting your children's health is a primary motivator for many seeking private medical insurance in the UK. The speed of access that PMI provides can be particularly reassuring for parents.
- Quick Specialist Access: Avoid long waits for paediatric specialists like ENT (Ear, Nose, and Throat) or dermatologists.
- Comfort and Privacy: A private room in a hospital can make a stressful experience much more comfortable for both child and parent.
- Parental Accommodation: Most private hospitals have facilities for a parent to stay overnight with their child.
Can I Get a Child-Only Policy?
Yes, most insurers offer 'child-only' policies. These can be a great option for:
- Grandparents wanting to buy cover for a grandchild.
- Separated parents who wish to insure a child independently.
However, for a nuclear family unit, it is almost always more cost-effective to add children to a parent's policy to take advantage of the family-friendly pricing structures.
How an Expert PMI Broker Like WeCovr Can Help
The UK's private health cover market is competitive, with excellent providers like Bupa, Aviva, AXA Health, and Vitality all offering different benefits and pricing. Trying to compare them all yourself can be overwhelming.
This is where an independent, FCA-authorised broker like WeCovr becomes your most valuable asset.
- Whole-of-Market Comparison: We are not tied to any single insurer. We compare policies and prices from across the market to find the best fit for your family's specific needs and budget.
- Expert, Tailored Advice: We take the time to understand what's important to you. Do you need extensive mental health support? Is a specific hospital near you essential? We translate your needs into the right policy features.
- No Cost to You: Our service is free. We are paid a commission by the insurer you choose, which does not affect the price you pay. You get expert advice and market access without any extra fees.
- Added Value: When you arrange your PMI with WeCovr, you also get complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero, to support your family's wellness goals. Plus, you may be eligible for discounts on other insurance products, like life or income protection cover.
Beyond Cost: The Other Benefits of a Family Policy
While the financial savings are compelling, there are other practical advantages to having a single family policy.
- Simplicity: One policy number, one set of documents, one renewal date, and one direct debit. It dramatically reduces household life-admin.
- Shared Wellness Benefits: Many modern PMI policies come with excellent wellness programmes. These can include discounts on gym memberships, fitness trackers, and healthy food. On a family plan, everyone can often benefit from these perks.
- A Family Approach to Health: Having a family policy can encourage a more proactive and unified approach to health and wellbeing.
Wellness Tips for the Whole Family
A healthy lifestyle is the best insurance of all. It reduces your risk of developing many conditions and helps keep your long-term PMI premiums lower.
- Eat the Rainbow: Encourage your family to eat a wide variety of fruits and vegetables. Make it a fun game for children to see how many different colours they can eat in a day.
- Move Together: According to NHS guidelines, adults should aim for 150 minutes of moderate activity per week, and children aged 5 to 18 need at least 60 minutes per day. Make it a family affair with weekend bike rides, walks in the park, or even a kitchen disco.
- Prioritise Sleep: Lack of sleep impacts everything from immune function to mental health. Establish consistent bedtimes and create a calm, screen-free wind-down routine for everyone in the family.
- Stay Hydrated: Water is essential for energy and concentration. Ensure everyone has a reusable water bottle and sips throughout the day.
Final Verdict: Family PMI for the Win
For the vast majority of UK couples and families, a joint private medical insurance policy is the clear winner. The combination of multi-person discounts and "kids go free" (or heavily discounted) offers results in significant annual savings compared to buying separate individual policies.
Beyond the cost savings, the simplicity of managing a single policy for the entire family is a major practical benefit.
The key is to ensure the policy you choose provides the right level of cover for everyone. By using a specialist PMI broker like WeCovr, you can be confident you’re not just getting the cheapest price, but the best value and protection for the people who matter most.
Does family PMI cover pregnancy and childbirth?
What happens to our family health insurance policy if we get divorced?
Can I add my elderly parents to my family PMI policy?
Do I need to declare pre-existing conditions for my children on a family policy?
Ready to find out exactly how much you could save with a family policy? Contact WeCovr today for a free, no-obligation quote. Our friendly experts will compare the UK's leading insurers to find the perfect cover for your family at the best possible price.
Sources
- Department for Transport (DfT): Road safety and transport statistics.
- DVLA / DVSA: UK vehicle and driving regulatory guidance.
- Association of British Insurers (ABI): Motor insurance market and claims publications.
- Financial Conduct Authority (FCA): Insurance conduct and consumer information guidance.
