PMI for the Self-Employed Affordable Options for Freelancers
As an FCA-authorised expert with over 800,000 policies of various kinds arranged, WeCovr specialises in helping UK individuals find the right private medical insurance. For the self-employed, where your health directly impacts your income, understanding your options is not just a luxury—it's a business essential.
Cover solutions designed for contractors, professionals, and business owners working solo
When you're self-employed, you are the business. There's no sick pay, no one to cover for you, and no safety net if illness or injury strikes. This makes staying healthy your number one priority. With NHS waiting lists remaining a significant challenge, taking control of your health with private medical insurance (PMI) is one of the most powerful decisions a freelancer, contractor, or sole trader can make.
This guide is designed to demystify private health cover, show you how to make it affordable, and empower you to protect your most valuable asset: you.
Why is Health Insurance a Game-Changer for the Self-Employed?
For the UK's 4.3 million self-employed individuals, time is quite literally money. An unexpected illness or injury doesn't just mean a few days off; it can mean weeks or months of lost income, missed deadlines, and damage to your professional reputation.
The reality of the current healthcare landscape adds to this pressure. While the NHS provides exceptional care, it is under immense strain.
- NHS Waiting Times: As of mid-2024, the number of treatments on NHS waiting lists in England stubbornly remains above 7.5 million. The average waiting time for non-urgent, consultant-led treatment can be many months. Can your business survive if you're waiting half a year for a hip replacement or knee surgery?
- The Financial Impact: Statutory Sick Pay (SSP) is not available to the self-employed. If you can't work, your income stops. A PMI policy ensures you can bypass long waits for diagnosis and treatment, getting you back on your feet and back to earning a living as quickly as possible.
- Peace of Mind: The stress of running a business is significant. Worrying about what would happen if you fell ill only adds to that burden. Having a PMI plan in place provides invaluable peace of mind, allowing you to focus on what you do best—running your business.
What is Private Medical Insurance (PMI) and What Does It Really Cover?
In simple terms, private medical insurance is a policy you pay for that covers the costs of private healthcare for specific conditions. Its primary purpose is to help you get diagnosed and treated faster for acute conditions that arise after you take out your policy.
It's crucial to understand the distinction between acute and chronic conditions, as this is the foundation of how all standard UK PMI works.
- Acute Condition: An illness, disease, or injury that is short-term and likely to respond quickly to treatment, leading to a full recovery. Examples include joint pain requiring surgery, hernias, cataracts, or infections requiring hospitalisation.
- Chronic Condition: A long-term condition that currently has no cure and needs ongoing management. Standard PMI does not cover the routine management of chronic conditions. Examples include diabetes, asthma, high blood pressure, and Crohn's disease.
- Pre-existing Conditions: This refers to any medical condition for which you have had symptoms, medication, or advice in the years before your policy starts (typically the last five years). Standard PMI policies exclude pre-existing conditions, at least initially.
Key Takeaway: Private health cover is designed for new, treatable conditions. It is not a replacement for the NHS, which continues to provide emergency care and manage long-term illnesses. Think of it as a way to complement NHS services, giving you choice, speed, and comfort when you need it most.
8 Proven Ways to Make PMI Affordable on a Freelancer's Budget
The biggest myth about private health cover is that it's prohibitively expensive. While comprehensive plans can be costly, there are many ways to tailor a policy to fit a tight budget without sacrificing the core benefits.
Here are the most effective strategies for self-employed professionals:
1. Choose a Higher Policy Excess
An excess is the amount you agree to pay towards a claim. For example, if you have a £250 excess and the cost of your treatment is £3,000, you pay the first £250, and the insurer pays the remaining £2,750.
Opting for a higher excess is one of the quickest ways to lower your monthly premium. Insurers offer a range of options, typically from £0 to £1,000.
| Excess Amount | Estimated Monthly Premium Reduction |
|---|---|
| £100 | 5-10% |
| £250 | 15-20% |
| £500 | 25-30% |
| £1,000 | 35-45% |
Note: Reductions are estimates and vary by insurer and individual circumstances.
2. Select the "Six-Week Option"
This is perhaps the most popular cost-saving feature for PMI in the UK. With a six-week option, if the NHS waiting list for the inpatient treatment you need is six weeks or less, you will use the NHS. If the wait is longer than six weeks, your private medical insurance policy kicks in, and you can have the treatment privately.
Since many minor procedures have shorter NHS waits, this option can reduce your premium by 20-30% while still protecting you from the very long waits associated with more significant treatments.
3. Tailor Your Outpatient Cover
PMI policies distinguish between two types of care:
- Inpatient/Day-patient: Treatment that requires a hospital bed, either overnight (inpatient) or for the day (day-patient). This includes surgeries.
- Outpatient: Consultations, diagnostic tests (like MRI/CT scans), and therapies that don't require a hospital bed.
Full outpatient cover can be expensive. To save money, you can:
- Limit the financial cover: Cap your outpatient benefit to a set amount per year (e.g., £500, £1,000, or £1,500). This covers the initial diagnostic phase but protects you from a hefty bill.
- Remove it entirely: The most basic policies cover only inpatient treatment. You would pay for your own initial consultations and diagnostics but be fully covered if you need surgery.
4. Use a Guided Hospital or Consultant List
Insurers negotiate preferential rates with specific hospital groups and consultants. By agreeing to use a more limited "guided" network, you can significantly lower your premium. While this reduces your choice, the networks are still extensive and include high-quality private facilities across the UK.
5. Consider a "Diagnostics Only" Policy
If a full treatment policy is out of reach, a diagnostic policy is a fantastic, low-cost alternative. This type of plan covers the costs of consultations and tests needed to find out what's wrong.
For a freelancer, getting a fast diagnosis is half the battle. Knowing quickly whether an issue is serious or not allows you to plan, manage client expectations, and make informed decisions, even if you then have the treatment on the NHS.
6. Pay Your Premium Annually
Most insurers offer a discount of around 5% if you pay for your policy in a single annual payment rather than in monthly instalments. If you can afford the upfront cost, it's an easy way to save money over the year.
7. Maintain a Healthy Lifestyle
Some insurers, most notably Vitality, actively reward you for staying healthy. By tracking your activity, getting health checks, and eating well, you can earn points that lead to lower premiums, cashback, and other rewards. This approach turns your insurance from a passive safety net into an active partner in your wellbeing.
As a WeCovr client, you also get complimentary access to our AI-powered nutrition app, CalorieHero, to help you stay on track with your health goals.
8. Use an Independent PMI Broker
Trying to compare the market yourself is time-consuming and confusing. An independent broker, like WeCovr, does the hard work for you.
- They are experts: They understand the complex details of each policy.
- They are impartial: They work for you, not the insurer, to find the best fit for your needs and budget.
- They save you money: They have access to the whole market and can find deals you wouldn't find on your own.
- Their service is free: Brokers are paid a commission by the insurer you choose, so there is no cost to you for their advice.
Understanding Underwriting: Moratorium vs. Full Medical
When you apply for PMI, the insurer needs to know about your medical history to decide what they will cover. This process is called underwriting. There are two main types.
1. Moratorium Underwriting
This is the most common and simplest method.
- You don't have to complete a detailed medical questionnaire.
- The policy automatically excludes any conditions for which you have had symptoms, medication, or advice in the 5 years before your policy start date.
- The 2-Year Rule: If, after your policy starts, you go for 2 continuous years without any symptoms, treatment, or advice for a pre-existing condition, the exclusion may be lifted, and that condition could become eligible for cover.
It's simple and fast, but there can be a lack of clarity in the first couple of years about exactly what's covered until you make a claim.
2. Full Medical Underwriting (FMU)
With FMU, you provide your complete medical history on the application form.
- The insurer assesses your health history in detail.
- They then issue a policy that clearly states any specific, permanent exclusions from the start.
- For example, they might say, "We will not cover any treatment related to the knee pain you experienced in 2023."
FMU involves more paperwork, but it gives you complete certainty from day one about what is and isn't covered. It can sometimes be a better option for those who have had minor health issues in the past.
A Look at the UK's Leading PMI Providers
The UK private medical insurance market is competitive, with several excellent providers offering plans suitable for the self-employed. A broker like WeCovr can help you compare them in detail.
| Provider | Key Strengths for Freelancers | Best For... |
|---|---|---|
| Aviva | Strong value, straightforward policies, and excellent core cancer cover. Their "Speedy Diagnostics" promise is a big plus. | Those seeking solid, no-fuss comprehensive cover from a trusted brand. |
| AXA Health | Excellent mental health support, strong digital tools (including a 24/7 GP service), and flexible policy options. | Freelancers who prioritise mental wellbeing and easy digital access. |
| Bupa | The UK's most recognised health insurance brand with a vast hospital network and direct access to cancer and mental health services. | Individuals who value brand reputation and an extensive choice of facilities. |
| Vitality | Unique wellness programme that rewards healthy living with premium discounts, cinema tickets, and coffee. | Active, health-conscious freelancers who want their insurance to do more. |
| The Exeter | A specialist, friendly society known for considering applicants with some prior medical history and offering flexible underwriting. | Those who may have been declined or had exclusions placed elsewhere. |
Tax and Private Health Insurance: What Sole Traders and Limited Companies Need to Know
How you handle PMI for tax purposes depends entirely on your business structure. Getting this wrong can be a costly mistake.
For Sole Traders & Partnerships
The rule here is simple: PMI is not an allowable business expense.
HMRC considers private medical insurance a personal benefit, not a cost incurred "wholly and exclusively" for the business. You must pay for your policy out of your post-tax income. You cannot deduct the cost of your premiums from your profits when you complete your Self Assessment tax return.
For Limited Company Directors
If you run your own limited company, the situation is different.
- The company can pay the premium: The policy cost is an allowable business expense for the company, meaning it can be deducted from the company's profit before calculating Corporation Tax.
- It is a 'Benefit in Kind': Because the director is receiving a personal benefit, the premium's value is treated as a "Benefit in Kind" (P11D benefit).
- Tax implications for the Director: The director must pay income tax on the value of the annual premium at their marginal rate (20%, 40%, or 45%).
- Tax implications for the Company: The company must pay Class 1A National Insurance contributions (currently 13.8%) on the value of the premium.
Example:
- A director's PMI premium is £1,200 for the year (£100/month).
- The company pays this and can offset the £1,200 against its Corporation Tax bill.
- The company must also pay £165.60 in Class 1A National Insurance (£1,200 x 13.8%).
- The director, a higher-rate taxpayer (40%), will have their tax code adjusted to pay an extra £480 in income tax (£1,200 x 40%).
Even with the extra tax, paying through a limited company is often more tax-efficient than paying personally as a sole trader.
Beyond Insurance: A Freelancer's Guide to Staying Well
While PMI is your safety net, prevention is always better than cure. As a self-employed professional, proactive health management is a core business strategy.
- Fuel Your Body: Your brain and body need quality fuel. Prioritise balanced meals, stay hydrated with water, and avoid relying on caffeine and sugar to get through deadlines. Using an app like CalorieHero, which WeCovr provides to clients for free, can make tracking your nutrition simple.
- Protect Your Sleep: Aim for 7-9 hours of quality sleep per night. A consistent sleep schedule, even on weekends, regulates your body clock, improves focus, and boosts your immune system. Avoid screens for at least an hour before bed.
- Move Your Body: Being chained to a desk is a modern occupational hazard.
- The 20-20-20 Rule: Every 20 minutes, look at something 20 feet away for 20 seconds to reduce eye strain.
- Desk Stretches: Simple neck, shoulder, and wrist stretches can prevent repetitive strain injury.
- Walk and Talk: Take business calls while walking instead of sitting at your desk.
- Guard Your Mental Health: Freelancing can be isolating.
- Set Boundaries: Define your work hours and stick to them. It's vital to switch off.
- Build a Community: Connect with other freelancers online or in person. Sharing challenges and successes with peers is incredibly powerful.
- Take Real Breaks: Schedule short breaks throughout the day and take proper holidays to avoid burnout. Many PMI policies now include excellent mental health support, from therapy sessions to mindfulness apps.
The WeCovr Advantage: Your Partner in Health
Navigating the world of private medical insurance can feel overwhelming, but you don't have to do it alone. At WeCovr, we are dedicated to helping freelancers and self-employed professionals find the perfect cover.
We are proud of our high customer satisfaction ratings, which reflect our commitment to clear, honest, and expert advice. Our service is built around you:
- Independent & Impartial: We compare policies from across the market to find the right one for your specific needs.
- Expert Guidance: We translate the jargon and explain your options in plain English.
- Budget-Focused: We are experts at using the cost-saving tools—like excesses and six-week options—to design a policy that fits your budget.
- No Cost to You: Our advice and support are completely free.
- Added Value: We go beyond insurance by offering clients complimentary access to our CalorieHero nutrition app and providing discounts on other essential cover like income protection or life insurance when you buy a policy through us.
Is private health insurance worth it for a self-employed person in the UK?
How much does private health insurance for a freelancer typically cost?
Can I get cover for a pre-existing medical condition?
Is private health insurance tax-deductible if I'm a sole trader?
What is the difference between private medical insurance and a health cash plan?
Protecting your health is the best investment you can make in your business. Take the first step today.
Get a free, no-obligation quote from WeCovr and let our experts find the right private health cover for you.
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:
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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!