Mixing PMI with Health Cash Plans UK
As an FCA-authorised broker that has helped arrange over 900,000 policies, we at WeCovr know the UK private medical insurance landscape inside and out. Many people believe comprehensive health cover is a single, all-encompassing product. However, a smarter, more flexible strategy exists: combining two different types of cover.
How combining two types of health cover can work to your advantage
Navigating your health and wellbeing in the UK involves balancing access to the brilliant, but often stretched, NHS with the desire for faster, more flexible private options. For many, the cost of comprehensive private medical insurance (PMI) can feel prohibitive, while relying solely on the NHS might mean long waits for certain treatments.
This is where a powerful and often-overlooked strategy comes into play: mixing Private Medical Insurance with a Health Cash Plan.
Think of it like this:
- Private Medical Insurance (PMI) is your shield against the big, unexpected health crises. It’s for serious, acute conditions like cancer, heart surgery, or joint replacements that require specialist diagnosis and hospital treatment.
- A Health Cash Plan is your wallet for routine, everyday healthcare. It helps you budget for and claim back costs on predictable expenses like dental check-ups, new glasses, physiotherapy sessions, and prescriptions.
By combining them, you create a holistic, two-layered system of protection. You use the PMI as a high-level safety net for major issues while the cash plan smooths out the smaller, more frequent costs, often saving you a significant amount of money in the process.
Understanding Private Medical Insurance (PMI) in the UK
Before we explore the synergy, it's crucial to understand exactly what each component does. PMI is the heavyweight of the private health world, designed to tackle significant medical events.
What is Private Medical Insurance?
Private Medical Insurance, also known as private health cover, is an insurance policy that pays for the cost of private medical treatment 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.
PMI's primary benefit is speed. With NHS waiting lists reaching record levels – the total waiting list in England stood at around 7.54 million in early 2024 according to NHS England data – PMI allows you to bypass these queues and receive eligible treatment when you need it.
The Critical Point on Cover: It is essential to understand that standard private medical insurance in the UK does not cover chronic or pre-existing conditions.
- Pre-existing Conditions: Any illness or injury you had before taking out the policy.
- Chronic Conditions: Conditions that are long-term and cannot be conventionally cured, only managed (e.g., diabetes, asthma, high blood pressure).
PMI is for new, eligible medical problems that arise after your policy begins.
What Does a Typical PMI Policy Cover?
While policies vary, most quality PMI plans offer cover for:
- In-patient and Day-patient Treatment: This includes hospital accommodation, nursing care, surgeon and anaesthetist fees, and specialist consultations while you are admitted to hospital.
- Out-patient Consultations and Diagnostics: Scans (MRI, CT, PET), blood tests, and appointments with specialists to diagnose a condition. This is often subject to an annual limit (e.g., £1,000).
- Comprehensive Cancer Care: This is a cornerstone of most PMI policies, covering diagnosis, surgery, chemotherapy, radiotherapy, and even experimental treatments in some cases.
- Mental Health Support: Most modern policies now include cover for mental health treatment, from therapy sessions to in-patient care.
- Digital GP Services: 24/7 access to a GP via phone or video call, allowing for quick consultations and prescriptions.
What PMI Typically Excludes
Understanding the exclusions is just as important as knowing what's covered.
- Pre-existing and chronic conditions
- Routine dental check-ups and treatment
- Routine optical care (eye tests, glasses)
- Elective cosmetic surgery
- Pregnancy and childbirth (though complications may be covered)
- A&E and other emergency services
The Cost of PMI and How to Manage It
The price of your PMI premium is influenced by several factors: your age, location, smoking status, and the level of cover you choose. One of the most effective ways to manage this cost is by adjusting your excess.
An excess is a fixed amount you agree to pay towards the cost of any claim you make. For example, if you have a £500 excess and your treatment costs £4,000, you pay the first £500 and the insurer pays the remaining £3,500.
The higher your excess, the lower your monthly premium. This is the key that unlocks the powerful strategy of combining PMI with a cash plan.
Unpacking Health Cash Plans: The Everyday Health Hero
If PMI is the shield, the health cash plan is the Swiss Army knife – versatile, affordable, and incredibly useful for everyday situations.
What is a Health Cash Plan?
A Health Cash Plan is a simple, low-cost scheme that helps you reclaim money spent on regular healthcare appointments and treatments. It is not designed to cover major surgery. Instead, it provides a set amount of money each year for different categories of health spending.
For a fixed monthly fee (often between £10 and £40), you get an annual pot of money for things like dental bills, optician fees, and physiotherapy.
What Do Health Cash Plans Cover?
These plans are fantastic for encouraging proactive and preventative health management. By making routine care more affordable, they help you stay on top of your health.
| Healthcare Category | Description of Cover | Typical Annual Limit |
|---|---|---|
| Dental | Check-ups, hygienist visits, fillings, crowns. | £75 - £250 |
| Optical | Eye tests, glasses, contact lenses. | £75 - £250 |
| Therapies | Physiotherapy, osteopathy, chiropractic, acupuncture. | £100 - £500 |
| Specialist Consultations | A contribution towards seeing a specialist privately. | £150 - £600 |
| Prescriptions | Covers the cost of NHS prescription charges. | £20 - £100 |
| Health Screenings | Contributions towards preventative health checks. | £100 - £200 |
| Hospital Stays | A fixed cash benefit for each night spent in an NHS hospital. | £25 - £100 per night |
How Do They Work?
The process is refreshingly straightforward:
- Pay for your treatment: You visit your dentist, optician, or physio as usual and pay them directly.
- Keep the receipt: Ensure you get a detailed, itemised receipt.
- Submit your claim: Most cash plan providers have a simple online portal or app where you can upload a photo of your receipt.
- Get reimbursed: The provider transfers the money directly into your bank account, up to your annual limit for that benefit.
Crucially, Health Cash Plans usually have no medical underwriting. This means they accept you regardless of your medical history, and you can claim for routine care even if it's related to a pre-existing condition.
The Synergy Strategy: How to Mix PMI and Health Cash Plans Effectively
This is where it all comes together. By cleverly structuring your two policies, you can achieve more comprehensive cover for less money.
The "High Excess" PMI Strategy
The core of this strategy is to re-evaluate what you need from your PMI. Instead of seeing it as a policy to cover every minor niggle, you reposition it as your safety net for catastrophic events.
You do this by choosing a PMI policy with a high excess, for instance, £1,000.
This single decision can dramatically reduce your monthly PMI premium, often by 30-50%. The policy is still there to provide fast access to the UK's best specialists and hospitals for cancer treatment, a hip replacement, or heart surgery. You just accept that you'll cover the first £1,000 of the cost yourself.
Using a Health Cash Plan to Fill the Gaps
You then take a portion of the money you've saved on your PMI premium and use it to buy a quality Health Cash Plan.
This achieves two brilliant things:
- It covers your routine care: The cash plan immediately gives you cover for the very things PMI excludes – your dental check-ups, eye tests, and physiotherapy sessions. You are no longer paying for these entirely out of pocket.
- It can help with the PMI excess: Should you need to make a claim on your PMI, the cash plan can soften the blow of the excess. For example, if your treatment involves a hospital stay, the 'per night' benefit from your cash plan can be put towards your £1,000 excess.
A Real-Life Example
Let's look at how this works in practice for "David," a 40-year-old freelance designer from Bristol.
Scenario A: Standard PMI-Only Approach
- David chooses a mid-range PMI policy with a low £250 excess. His premium is £75 per month.
- Over the year, he spends £150 on two dental check-ups/hygienist visits and £200 on new glasses.
- Total Annual Cost: (£75 x 12) + £150 + £200 = £1,250
Scenario B: The Combined Strategy Approach
- David works with a PMI broker like WeCovr to find a PMI policy with a £1,000 excess. His new premium is just £45 per month.
- He uses the £30 monthly saving to buy a Health Cash Plan for £20 per month.
- His total monthly outlay for premiums is £45 + £20 = £65 per month.
- His cash plan provides £150 for dental and £150 for optical. He claims these back.
- Total Annual Cost: (£65 x 12) + (£150 - £150 reclaimed) + (£200 - £150 reclaimed) = £780 + £0 + £50 = £830
The Result: By using the combined strategy, David saves £420 per year. He has cover for his routine health needs and maintains his crucial PMI safety net for serious illness. The £1,000 excess might seem high, but over three years, he will have saved more than enough to cover it should he need to claim.
Comparison Table: PMI vs. Health Cash Plan vs. Combined Approach
| Feature | PMI Only (Low Excess) | Health Cash Plan Only | Combined Approach (High Excess PMI) |
|---|---|---|---|
| Major Surgery | ✅ Fully Covered | ❌ Not Covered | ✅ Fully Covered (after excess) |
| Cancer Care | ✅ Fully Covered | ❌ Not Covered | ✅ Fully Covered (after excess) |
| Routine Dental | ❌ Not Covered | ✅ Partially Covered | ✅ Partially Covered |
| Eye Tests & Glasses | ❌ Not Covered | ✅ Partially Covered | ✅ Partially Covered |
| Physiotherapy | ✅ Often Covered (post-op) | ✅ Partially Covered | ✅ Partially Covered (by both) |
| Monthly Cost | High | Low | Moderate |
| Financial Risk | Low (small excess) | High (no major cover) | Moderate (manageable excess) |
Is This Combined Strategy Right for You?
This innovative approach offers fantastic value, but it's important to consider if it aligns with your personal circumstances and attitude to risk.
Who Benefits Most?
- The Budget-Conscious: Anyone looking for the peace of mind of private health cover without the top-tier price tag.
- Families: Children's dental and optical needs can be significant. A family cash plan can be exceptionally good value.
- The Self-Employed and Freelancers: When your health is your business, this strategy provides robust protection while keeping fixed overheads low.
- Proactive Individuals: If you already invest in regular physio, dental check-ups, and health screenings, a cash plan ensures you get money back for the good habits you already have.
When Might It Not Be Suitable?
- If you have very low-risk tolerance: If the thought of paying a £1,000 excess for treatment causes you anxiety, a traditional low-excess PMI policy might offer more peace of mind, despite the higher cost.
- If you rarely use routine services: If you haven't been to a dentist or optician in years and don't foresee needing therapies, the value of the cash plan diminishes.
- If your employer provides excellent benefits: Check your workplace benefits package first. Many large companies offer either PMI or a cash plan, so you may only need to purchase the missing component.
Navigating the Market with an Expert Broker like WeCovr
The private medical insurance UK market is complex. With dozens of providers, each offering multiple tiers of cover and optional extras, trying to compare policies yourself can be overwhelming. This is where an independent, FCA-authorised broker becomes your most valuable asset.
At WeCovr, we don't work for the insurers; we work for you. Our expert advisors take the time to understand your unique health needs, your family situation, and your budget.
Here’s how we help you build the perfect combined strategy:
- We analyse your needs: We discuss your health priorities and risk appetite.
- We find the right PMI: We scan the market for the best PMI provider for you, modelling different excess levels to show you exactly how much you can save.
- We recommend a cash plan: We then help you choose a cost-effective health cash plan that complements your PMI and covers your specific routine needs.
- We do it all at no cost to you: Our service is free. We receive a commission from the insurer you choose, so you get expert, unbiased advice without paying a penny extra.
With high customer satisfaction ratings, our focus is on finding the right long-term solution for our clients. As a WeCovr client, you also get complimentary access to our AI-powered nutrition app, CalorieHero, and can benefit from discounts when you purchase other policies like life insurance.
Beyond Insurance: A Holistic Approach to Your Wellbeing
While insurance is a vital tool for managing health costs, the ultimate goal is to stay healthy. The best insurance claim is the one you never have to make. Integrating simple, positive habits into your daily life can have a profound impact.
- Nourish Your Body: A balanced diet rich in fruits, vegetables, and whole grains is your first line of defence against many chronic conditions. Small changes, like reducing processed foods and sugar, can make a huge difference.
- Prioritise Sleep: Sleep is not a luxury; it is a biological necessity. Aim for 7-9 hours of quality sleep per night to allow your body and mind to repair and recharge.
- Stay Active: The NHS recommends at least 150 minutes of moderate-intensity activity a week. This could be a brisk walk, a cycle ride, or a dance class. Find something you enjoy to make it a sustainable habit.
- Mind Your Mental Health: Many PMI policies and even some cash plans now offer mental health support lines and access to therapy. Don't hesitate to use them. Practices like mindfulness, spending time in nature, and taking regular breaks from screens can also reduce stress and improve resilience.
By combining a proactive approach to your daily wellbeing with a smart, layered insurance strategy, you put yourself in the strongest possible position to live a long, healthy, and financially secure life.
Do I need to declare my Health Cash Plan to my PMI provider?
Can a Health Cash Plan cover my PMI excess?
What happens if I have a pre-existing condition?
Is it cheaper to buy PMI and a cash plan separately or as a bundle?
Ready to explore a smarter way to protect your health? Contact the friendly experts at [**WeCovr**](/products/private-medical-insurance-quote-now/) today for a free, no-obligation quote and find the perfect blend of cover for your needs and budget.
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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