PMI Costs Changes for Young Families
At WeCovr, an FCA-authorised broker that has arranged over 900,000 policies, we know young families are budget-conscious. This guide examines how private medical insurance (PMI) costs in the UK are changing, with a look ahead to the key trends affecting parents and their children in 2026.
Trends affecting pricing for parents in 2026
Navigating the world of private medical insurance (PMI) can feel complex, especially when you're managing a family budget. As we look towards 2026, several key trends are reshaping the cost and structure of health cover for parents and their children in the UK. Understanding these shifts is the first step to securing the right protection for your family without overstretching your finances.
The primary drivers behind premium adjustments are a blend of economic pressures, shifts in healthcare demand, and innovations within the insurance industry itself.
1. Medical Inflation: The Silent Premium Driver
One of the most significant factors pushing up PMI costs is 'medical inflation'. This isn't the same as the standard inflation (CPI) you hear about on the news. Medical inflation refers to the rising cost of providing private healthcare and typically runs much higher. In 2025, it's estimated to be between 8% and 10%, compared to a general inflation rate closer to 3%.
Why is medical inflation so high?
- Advanced Treatments & Drugs: New, more effective (and often more expensive) drugs for conditions like cancer are constantly being approved for use.
- Sophisticated Technology: The cost of cutting-edge diagnostic equipment, like MRI and CT scanners, rises each year.
- Higher Staffing Costs: Private hospitals compete for the best consultants, nurses, and specialists, leading to higher salary demands.
- Increased Energy Bills: The cost of running state-of-the-art medical facilities has risen sharply, a cost that is passed on through treatment prices.
For a young family, this means the base cost of the healthcare your policy covers is increasing each year, which inevitably translates to higher renewal premiums.
2. Continued NHS Pressure and Growing Demand
It's no secret that the NHS, while a cherished institution, is under immense strain. According to the latest NHS England data from late 2025, the elective care waiting list remains historically high, with over 7.5 million treatment pathways pending. For many parents, the prospect of long waits for consultations, scans, or surgery for themselves or their children is a major concern.
This situation directly fuels demand for private medical insurance UK. As more people turn to the private sector for prompt diagnosis and treatment, a few things happen:
- Increased Claims: More policyholders using their insurance leads to higher claim volumes for insurers.
- Price Adjustments: To balance their books, insurers adjust premiums upwards across their customer base to cover the increased costs.
- Shift in Demographics: Historically, PMI was more common among older demographics. Now, a growing number of young professionals and families are entering the market, changing the overall risk profile of the insured population.
3. The Expanding Role of Mental Health Cover
The conversation around mental health has thankfully opened up, and families are increasingly seeking support for conditions like anxiety, depression, and stress. Insurers have responded by significantly enhancing their mental health cover, but this comes at a cost.
What to expect in 2026:
- More Comprehensive Cover: Policies are moving beyond just a few counselling sessions. Many now include access to psychiatrists, a wider range of therapies, and support for adolescent mental health.
- Digital Mental Health Tools: Insurers are partnering with apps like Headspace or providing their own digital platforms for mindfulness, therapy, and mood tracking.
- Impact on Premiums: While this enhanced cover is a huge benefit, it is also a factor in premium increases as usage grows. For parents concerned about their own mental wellbeing or that of their children, this added protection is often seen as a price worth paying.
4. Integration of Wellness and Technology
Insurers are no longer just passive payers of claims. They are actively encouraging policyholders to live healthier lives. This is a win-win: you stay healthier, and their long-term claims costs are reduced.
- Wearable Technology: Many leading PMI providers offer discounts or rewards for hitting daily step counts, tracking workouts, or engaging in regular physical activity, monitored via smartwatches or fitness trackers.
- Digital GPs: 24/7 access to a GP via video call is now a standard feature on most policies. This provides huge convenience for busy parents who can't easily get a same-day appointment.
- Health and Wellness Apps: Insurers are providing tools for everything from nutrition planning to guided meditation. For example, at WeCovr, all our PMI and life insurance clients receive complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app, to help them and their families maintain a healthy diet.
This focus on proactive health can lead to direct premium savings through no-claims discounts and wellness rewards, helping to offset the general trend of rising costs.
How Insurers Calculate Premiums for Young Families
When an insurer provides a quote for your family, they aren't picking a number out of thin air. They use a sophisticated process to assess the level of risk, which determines your final premium. Understanding these factors empowers you to make informed choices.
Here are the core components that go into your family's PMI price tag.
| Factor | How It Affects Your Premium | Example for a Young Family |
|---|---|---|
| Age | The older you are, the higher the statistical likelihood of needing medical treatment. Premiums rise with age. | A couple aged 32 and 30 will pay significantly less than a couple aged 42 and 40. Children are very cheap to add. |
| Location (Postcode) | Private medical costs are higher in certain areas, particularly London and other major cities, due to higher hospital and consultant fees. | A family living in central London could pay 20-40% more than an identical family living in rural Scotland for the same cover. |
| Level of Cover | This is the biggest variable. A basic policy covering only in-patient care will be much cheaper than a comprehensive one with extensive out-patient and therapy benefits. | A 'cancer care and hospital charges only' policy might cost £40/month, whereas a comprehensive policy could be £120/month. |
| Excess Amount | This is the amount you agree to pay towards the cost of a claim. A higher excess leads to a lower monthly premium. | Choosing a £500 excess instead of a £100 excess could reduce your premium by 15-25%. |
| Underwriting Type | This determines how the insurer treats your past medical history. We'll explore this in more detail below. | 'Moratorium' underwriting is simpler and quicker, while 'Full Medical Underwriting' is more detailed but can offer more certainty. |
Adding Children to a Policy
One of the best features of the UK private health cover market for families is how children are priced.
- First Child Often Free or Discounted: Many top PMI providers, in a bid to attract families, will offer to add your first child to a policy for free or at a steep discount.
- Subsequent Children: The second, third, or fourth child is then added for a small additional premium, which is often capped. For example, you might pay the same price for two children as you do for four.
- When to Add a Newborn: You typically have a window (e.g., 3 months) to add a newborn baby to your policy without any medical underwriting, ensuring they are covered from an early age.
This pricing structure makes family PMI surprisingly affordable compared to insuring two adults alone.
Understanding What Your Family's PMI Policy Will and Won't Cover
This is arguably the most important section for any family considering private medical insurance. A policy is only as good as what it covers, and understanding the exclusions is vital to avoid disappointment when you need to make a claim.
The Golden Rule of UK PMI: It's for Acute Conditions Only.
Private medical insurance 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 lead to a full recovery. Think of things like joint pain requiring surgery, hernias, cataracts, or diagnosed cancers.
- Conversely, PMI does not cover chronic conditions. A chronic condition is an illness that cannot be cured, only managed. This includes diabetes, high blood pressure, asthma, and most autoimmune disorders. The NHS remains the primary provider for managing these long-term conditions.
What is Usually Covered by Family PMI?
While policies vary, a typical mid-range to comprehensive family policy will include cover for:
| Coverage Area | Description & Examples |
|---|---|
| In-patient & Day-patient Treatment | Covers costs when you are admitted to hospital for a bed overnight (in-patient) or just for the day (day-patient). This includes surgery, hospital fees, consultant fees, and anaesthetist charges. |
| Out-patient Consultations & Diagnostics | This is for treatment where you aren't admitted to hospital. It includes specialist consultations and diagnostic tests like MRI, CT, and PET scans, blood tests, and X-rays. This is often the most valuable part of a policy for getting a quick diagnosis. |
| Cancer Cover | All PMI policies cover cancer, but the level varies. Comprehensive cover includes access to the latest chemotherapy, radiotherapy, and biological therapies, even those not yet available on the NHS. |
| Mental Health Support | As discussed, this is a growing area. It can range from a set number of therapy sessions to full psychiatric cover. Essential for parental burnout or adolescent mental health struggles. |
| Therapies | Physiotherapy, osteopathy, and chiropractic treatment for muscle and joint problems. This is a huge benefit for active parents or children with sports injuries. |
| Digital GP & Health Services | 24/7 access to a GP via phone or video, prescription services, and other digital health tools. |
Critical Exclusions: What PMI Will Not Cover
It is vital to be aware of the standard exclusions that apply to almost all UK PMI policies.
-
Pre-existing Conditions: This is the big one. A PMI policy will not cover any medical condition for which you (or your children) have experienced symptoms, received medication, or sought advice for before the policy started. How this is applied depends on your underwriting type:
- Moratorium Underwriting: You don't declare your medical history upfront. The insurer automatically excludes any condition you've had in the last 5 years. If you then go 2 full years on the policy without any symptoms, advice, or treatment for that condition, it may become eligible for cover. It's simple but can create uncertainty.
- Full Medical Underwriting (FMU): You complete a detailed health questionnaire. The insurer reviews your history and tells you exactly what is and isn't covered from day one. It's more work initially but provides complete clarity.
-
Chronic Conditions: As mentioned, long-term conditions like diabetes, asthma, epilepsy, and high blood pressure are not covered. PMI is for curative treatment, not long-term management.
-
Normal Pregnancy and Childbirth: Routine maternity care is not covered. However, some comprehensive policies may offer cover for complications of pregnancy.
-
Emergency Services: If you have a medical emergency (e.g., a heart attack, stroke, or serious accident), you should go to your local NHS A&E. PMI does not cover emergency admissions.
-
Other Common Exclusions: These often include cosmetic surgery (unless medically necessary), fertility treatments, routine dental and optical care (unless added as an extra), and treatment for drug or alcohol abuse.
Strategies to Manage and Reduce Your Family's PMI Costs in 2026
While premiums are generally on an upward trend, you are not powerless. By making smart choices about your policy structure, you can secure fantastic cover that fits your family's budget.
Here are the most effective strategies for 2026:
1. Choose the Right Excess Level
Your policy excess is the amount you contribute towards a claim. The higher your excess, the lower your monthly premium.
- How it works: If you have a £250 excess and need a procedure costing £3,000, you pay the first £250, and the insurer pays the remaining £2,750.
- The trade-off: A £0 or £100 excess gives you peace of mind but a high premium. A £500 or £1,000 excess can dramatically reduce your premium, but you need to be sure you could comfortably afford that amount if you needed to claim.
Example Premium Impact of Excess: (Based on a family of four, non-smokers, living outside London)
| Excess Level | Estimated Monthly Premium | Annual Saving vs. £100 Excess |
|---|---|---|
| £100 | £130 | £0 |
| £250 | £115 | £180 |
| £500 | £98 | £384 |
| £1,000 | £80 | £600 |
2. Select a Guided Hospital List
Insurers have different lists of hospitals where you can receive treatment.
- National List: Allows you to use almost any private hospital in the UK. This offers maximum choice but comes with the highest price tag.
- Guided List / Network List: The insurer provides a curated list of high-quality, cost-effective hospitals. By agreeing to use this list, you can get a significant discount (often 15-20%). For most families, the hospitals on these lists are more than sufficient.
3. Consider the '6-Week Wait' Option
This is one of the most powerful cost-saving tools. If you add this option, your PMI will only kick in for in-patient treatment if the NHS waiting list for that procedure is longer than six weeks.
- How it works: If you need a knee operation and the NHS can perform it within five weeks, you would use the NHS. If the NHS wait is ten weeks, your private cover is activated immediately.
- Why it saves money: It effectively means you are using PMI to bypass long NHS waits, not all waits. Since many non-urgent procedures have waits far exceeding six weeks, it still provides immense value while cutting your premium by up to 25-30%.
4. Engage with Wellness Programmes
Don't just pay for your policy; make it work for you! Providers like Vitality, Aviva, and Bupa have extensive wellness programmes.
- Earn Rewards: Link a fitness tracker and earn points for steps, gym visits, or health checks. These points can be converted into coffee vouchers, cinema tickets, or even reductions on your next year's premium.
- Stay Healthy: These programmes genuinely motivate you to be more active and conscious of your health, reducing your long-term risk of illness.
5. Review Your Policy Annually with a Broker
Your family's needs change. The policy that was perfect when you had one toddler might not be right when you have two school-age children. The market also changes, with new products and pricing being released all the time.
Using an independent PMI broker like WeCovr is crucial here. At renewal, we can:
- Re-broke the market: We compare your renewal offer against quotes from all leading UK insurers to ensure you're not overpaying.
- Assess your needs: We'll discuss if your current level of cover is still right or if you could save money by adjusting it.
- Provide this service at no cost: Our fee is paid by the insurer you choose, so you get expert, impartial advice for free.
6. Take Advantage of Multi-Policy Discounts
When you buy your family's private medical insurance through WeCovr, you may also be eligible for discounts on other types of cover, such as life insurance or income protection. Bundling your protection can lead to significant overall savings.
Why Use a PMI Broker Like WeCovr?
In a market with dozens of providers and hundreds of policy combinations, trying to find the best private medical insurance for your family can be overwhelming. This is where an expert, independent broker makes all the difference.
- Whole-of-Market Expertise: We aren't tied to a single insurer. We have deep knowledge of the products, pricing, and claims service of all the major UK providers, including Bupa, AXA Health, Aviva, Vitality, and The Exeter.
- Personalised Advice: We take the time to understand your family's specific situation—your budget, your health concerns, and your priorities. We then tailor a recommendation just for you, explaining the pros and cons of each option in plain English.
- Guaranteed Best Price: Our service is completely free for you to use. Because we work with insurers every day, we have access to the best possible pricing and can ensure you don't overpay.
- Ongoing Support: Our relationship doesn't end when you buy the policy. We are here to help you at renewal, assist with any complex claim queries, and provide advice as your family's needs evolve. With consistently high customer satisfaction ratings, we pride ourselves on being a long-term partner in your family's health.
- Exclusive Benefits: On top of impartial advice, WeCovr clients get complimentary access to the CalorieHero AI nutrition app and can benefit from multi-policy discounts, adding even more value.
Is it cheaper to add my child to my policy or get them a separate one?
Do I need to declare my child's past common illnesses like chickenpox or tonsillitis?
What happens to our family's PMI premium if one of us makes a claim?
Can I use private health cover for my child's routine developmental checks or vaccinations?
Ready to explore your family's private health cover options and find a policy that provides peace of mind without breaking the bank?
Get your free, no-obligation quote from a WeCovr expert today and see how much you could save.
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.
By tapping the button below, you can book a free call with them in less than 30 seconds right now:
Our Group Is Proud To Have Issued 900,000+ Policies!
We've established collaboration agreements with leading insurance groups to create tailored coverage
How It Works
1. Complete a brief form
2. Our experts analyse your information and find you best quotes
3. Enjoy your protection!
Any questions?
Learn more
Who Are WeCovr?
WeCovr is an insurance specialist for people valuing their peace of mind and a great service.👍 WeCovr will help you get your private medical insurance, life insurance, critical illness insurance and others in no time thanks to our wonderful super-friendly experts ready to assist you every step of the way.
Just a quick and simple form and an easy conversation with one of our experts and your valuable insurance policy is in place for that needed peace of mind!