TL;DR
As an FCA-authorised broker that has helped arrange over 900,000 policies, WeCovr understands the unique needs of UK contractors seeking private medical insurance. This guide explains how PMI works for freelancers, what it costs, and how to get the right cover for your circumstances. PMI pricing explained for freelancers and contract staff Working as a contractor or freelancer in the UK offers incredible freedom and flexibility.
Key takeaways
- Minimise Downtime: Get diagnosed and treated faster, allowing you to return to your contract work sooner.
- Protect Your Income: By reducing the time you're unable to work, you safeguard your earnings.
- Choice and Control: You can often choose your specialist and the hospital where you receive treatment.
- Comfort and Privacy: Enjoy the benefits of a private room, more flexible visiting hours, and other home comforts.
- Access to Specialist Drugs & Treatments: Some policies provide cover for treatments or drugs that may not be available on the NHS due to cost.
As an FCA-authorised broker that has helped arrange over 900,000 policies, WeCovr understands the unique needs of UK contractors seeking private medical insurance. This guide explains how PMI works for freelancers, what it costs, and how to get the right cover for your circumstances.
PMI pricing explained for freelancers and contract staff
Working as a contractor or freelancer in the UK offers incredible freedom and flexibility. You are your own boss, you set your own hours, and you control your financial destiny. However, this autonomy comes with a significant trade-off: you lose the safety net of employee benefits, most notably sick pay and corporate health insurance.
If illness or injury strikes, you can't work. If you can't work, you don't get paid. This is the stark reality for millions of self-employed professionals across the country. While the NHS provides exceptional care, long waiting lists for diagnostics and non-urgent treatment can mean months of uncertainty and lost income.
This is where private medical insurance (PMI) becomes a vital tool, not a luxury. It offers a fast-track back to health, allowing you to bypass NHS queues and receive prompt treatment, protecting both your health and your livelihood. But how much does it cost, and is it worth it for a contractor?
Let's break down the costs and considerations.
Why Should Contractors Consider Private Health Insurance?
For a contractor, time is quite literally money. Any period of illness that prevents you from working directly impacts your earnings. The primary benefit of private health cover is speed of access.
The Challenge of NHS Waiting Times
The NHS is a national treasure, but it is under immense pressure. According to the latest data from NHS England, the total waiting list for consultant-led elective care stood at over 7.5 million in early 2024. The target is for 92% of patients to wait no more than 18 weeks from referral to treatment. However, hundreds of thousands of patients are waiting significantly longer.
For a contractor, an 18-week wait—or longer—for a hip replacement, hernia repair, or even diagnostic scans can be financially devastating.
Benefits of PMI for Contractors:
- Minimise Downtime: Get diagnosed and treated faster, allowing you to return to your contract work sooner.
- Protect Your Income: By reducing the time you're unable to work, you safeguard your earnings.
- Choice and Control: You can often choose your specialist and the hospital where you receive treatment.
- Comfort and Privacy: Enjoy the benefits of a private room, more flexible visiting hours, and other home comforts.
- Access to Specialist Drugs & Treatments: Some policies provide cover for treatments or drugs that may not be available on the NHS due to cost.
What Factors Determine the Cost of Your PMI Policy?
The price of a private medical insurance policy isn't a one-size-fits-all figure. It’s a highly personalised quote based on a combination of risk factors and the level of cover you choose. Think of it like car insurance: a 20-year-old with a sports car pays more than a 50-year-old with a family saloon.
Here are the core factors that insurers use to calculate your premium:
| Factor | How It Affects Your Premium | Explanation |
|---|---|---|
| Age | High Impact | The older you are, the higher the statistical likelihood of needing medical treatment. Premiums increase significantly with age. |
| Location | Medium Impact | The cost of private medical care varies across the UK. Hospitals in Central London and major cities are more expensive, so living there increases your premium. |
| Level of Cover | High Impact | A basic policy covering only in-patient treatment will be much cheaper than a comprehensive policy that includes out-patient scans, therapies, and mental health support. |
| Underwriting Type | High Impact | The way an insurer assesses your medical history (underwriting) has a huge bearing on price and what's covered. We'll explore this in detail below. |
| Policy Excess | Medium Impact | This is the amount you agree to pay towards a claim. A higher excess (£500 or £1,000) will lower your monthly premium. |
| Hospital List | Medium Impact | Insurers have tiered hospital lists. Choosing a list that excludes expensive central London hospitals can reduce your premium by 15-20%. |
| Smoking Status & Lifestyle | Low to Medium Impact | Smokers and those with a high BMI may pay more. Conversely, some providers like Vitality reward healthy living with lower premiums. |
Understanding Underwriting: The Most Important Choice
When you apply for PMI, the insurer needs to know about your medical history to decide what they can and cannot cover. This is called underwriting.
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Full Medical Underwriting (FMU): You provide a full declaration of your medical history. The insurer may write to your GP for more information. They will then explicitly state what conditions are excluded from your policy from day one. It provides certainty but can be a slower process.
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Moratorium Underwriting (MORI): This is the most common type. You don't declare your medical history upfront. Instead, the policy automatically excludes any condition you've had symptoms of, or received treatment for, in the past five years. If you then go two continuous years without any symptoms, advice, or treatment for that condition after your policy starts, it may become eligible for cover. It's faster, but there can be uncertainty at the point of a claim.
Working with an expert broker like WeCovr can help you decide which underwriting option is best for your personal circumstances, ensuring there are no nasty surprises when you need to make a claim.
How Much Does Private Health Insurance Cost for a Contractor?
So, what's the bottom-line figure? The cost can range from as little as £30 per month for a young, healthy contractor with a basic policy, to over £200 per month for an older individual seeking comprehensive cover.
Let's look at some real-world examples. The prices below are illustrative monthly estimates for a non-smoker on a mid-tier policy with a £250 excess.
Example Monthly PMI Costs for UK Contractors (2025 Estimates)
| Age | Based in Manchester (Lower Cost Area) | Based in Central London (Higher Cost Area) |
|---|---|---|
| 30-year-old | £45 - £60 | £60 - £80 |
| 40-year-old | £65 - £85 | £85 - £110 |
| 50-year-old | £90 - £120 | £120 - £160 |
| 60-year-old | £140 - £190 | £180 - £250 |
These figures demonstrate the significant impact of age and location. A comprehensive policy with zero excess and full out-patient cover could be 50-70% higher than these estimates.
Understanding Your Cover: What’s Included and What’s Not?
This is the most critical part of choosing any private medical insurance policy. Misunderstanding the scope of cover is the number one source of frustration for policyholders.
The Golden Rule: Acute vs. Chronic Conditions
UK private health insurance is designed to cover 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 of acute conditions covered by PMI:
- Joint replacements (hip, knee)
- Hernia repair
- Cataract surgery
- Gallbladder removal
- Diagnostic procedures (MRI, CT scans)
- Cancer treatment (often covered extensively)
PMI does not cover chronic conditions. A chronic condition is one that persists over a long period, cannot be cured, and needs ongoing management.
Examples of chronic conditions not covered by PMI:
- Diabetes
- Asthma
- High blood pressure
- Crohn's disease
- Arthritis
Management of these conditions remains the responsibility of your NHS GP and specialists. PMI is there to step in for the curable, short-term issues.
What About Pre-existing Conditions?
Alongside chronic conditions, standard PMI policies will not cover pre-existing conditions.
A pre-existing condition is any illness or injury you have had symptoms of, or received advice or treatment for, before the start of your policy.
- If you choose Full Medical Underwriting, these will be listed as specific exclusions on your policy documents.
- If you choose Moratorium Underwriting, anything from the last five years is automatically excluded.
This rule is fundamental to how private health insurance in the UK works. It's designed to cover new, unforeseen problems that arise after you take out the policy.
Common Standard Exclusions
Besides chronic and pre-existing conditions, most policies will also exclude:
- Routine pregnancy and childbirth
- Cosmetic surgery (unless reconstructive after an accident)
- Emergency services (A&E visits are handled by the NHS)
- Drug and alcohol abuse treatment
- Organ transplants
- Self-inflicted injuries
Customising Your Policy to Manage Costs
As a contractor, managing your outgoings is paramount. The good news is that PMI is highly customisable. You can adjust several levers to bring your premium down to a comfortable level.
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Increase Your Excess: Agreeing to pay the first £250, £500, or even £1,000 of a claim can significantly reduce your monthly premium. If you don't claim, you save money.
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The '6-Week Wait' Option: This is a popular cost-saving feature. It means that if the NHS can treat you within six weeks for a specific procedure, you will use the NHS. If the waiting list is longer than six weeks, your private cover kicks in. This can reduce your premium by up to 25% as it removes cover for treatments where the NHS is already efficient.
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Limit Your Out-patient Cover: Out-patient cover pays for consultations and diagnostics before you are admitted to hospital. You can choose to:
- Have no out-patient cover (lowest cost).
- Illustrative estimate: Cap it at a certain amount (e.g., £500 or £1,000 per year).
- Have full out-patient cover (highest cost). A capped limit is a good compromise for many.
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Choose Your Hospital List: As mentioned, opting for a hospital list that excludes the most expensive private facilities in central London can offer substantial savings, especially if you live outside the M25.
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Add a Cancer Cover Downgrade: All good PMI policies offer comprehensive cancer cover as standard. However, some allow you to downgrade this element (e.g., agreeing to use the NHS for radiotherapy/chemotherapy) in return for a lower premium. This is a significant decision that should be discussed with an adviser.
A specialist PMI broker can model these different options for you, showing you exactly how each change affects your monthly cost.
Is PMI a Tax-Deductible Expense for Contractors?
This is a common and important question. The answer depends on your business structure.
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For Sole Traders: If you are a sole trader, private medical insurance is generally considered a personal expense, not a business one. This means you cannot claim it as a tax-deductible expense against your income. You pay for it out of your post-tax earnings.
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For Limited Companies: If you operate through your own limited company, the company can pay for your health insurance premium. This is a legitimate business expense and can be offset against your corporation tax bill. However, it is treated as a 'benefit in kind' (P11D benefit) for you as the director. This means you will have to pay personal income tax on the value of the premium, and the company will have to pay Class 1A National Insurance contributions.
While it's not "free money", running it through a limited company is often more tax-efficient than paying for it personally. We always recommend speaking to your accountant to confirm the best approach for your specific financial situation.
Choosing the Best PMI Provider for UK Contractors
The UK PMI market is dominated by a few key players, each with their own strengths and policy features.
- Bupa: One of the most recognised names in UK health, known for its extensive network and comprehensive cancer cover.
- Aviva: A huge insurance brand offering flexible and well-regarded PMI policies, often praised for their customer service and clear documentation.
- AXA Health: A global insurer with a strong UK presence, offering a modular approach that lets you build a policy that suits your needs.
- Vitality: Unique in the market for its focus on wellness. It incentivises healthy living by offering rewards like cinema tickets, coffee, and lower premiums for members who stay active.
- The Exeter: A friendly society known for its excellent customer service and flexible underwriting, particularly for those with some prior medical history.
Comparing these providers like-for-like can be incredibly complex. Their definitions, hospital lists, and benefit limits all differ. This is where an independent broker adds immense value.
At WeCovr, we compare policies from across the market to find the one that offers the best value and the right level of protection for your needs as a contractor, at no extra cost to you.
Beyond Insurance: Wellness Programmes and Added Perks
Modern private health insurance is about more than just paying for hospital bills. Many insurers now include a suite of benefits designed to keep you healthy and provide value even when you're not claiming.
Examples of Added-Value Benefits:
- Virtual GP Services: 24/7 access to a GP via phone or video call, allowing you to get prescriptions and referrals without leaving your home office. This is invaluable for busy contractors.
- Mental Health Support: Many policies now include access to a set number of therapy or counselling sessions, recognising the importance of mental wellbeing for self-employed professionals.
- Gym Discounts and Fitness Rewards: Vitality is the leader here, but other providers also offer discounts on gym memberships and fitness trackers.
- Wellness Apps and Tools: Insurers provide apps to help you track your health, manage your policy, and access support services.
As a WeCovr client, you also get complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero, to support your health and fitness goals. Furthermore, customers who purchase PMI or life insurance through us are often eligible for discounts on other types of cover, like income protection or critical illness insurance.
How a Specialist PMI Broker Can Save You Time and Money
You could spend days researching different insurers, reading policy documents, and getting individual quotes. Or, you can make one phone call to a specialist broker.
A broker's job is to:
- Understand You: They take the time to learn about your job, your health, your family, and your budget.
- Scan the Market: They use their expertise and technology to compare dozens of policies from leading UK insurers.
- Explain the Jargon: They translate the complex policy wording into plain English so you know exactly what you are buying.
- Find the Best Value: They identify the policy that provides the right level of cover for your needs at the most competitive price.
- Help with Applications: They guide you through the application process, ensuring everything is completed correctly.
- Provide Ongoing Support: They are there to help you at renewal or if you need to make a claim.
Crucially, using a broker like WeCovr does not cost you anything extra. We are paid a commission by the insurer you choose, which is already built into the premium. You get expert, impartial advice and market comparison for the same price as going direct, and often cheaper due to the deals we can access.
Frequently Asked Questions
Can I add my family to my contractor health insurance policy?
Do I need to have a medical examination to get PMI?
What happens to my policy if I stop contracting and take a permanent job?
Does private medical insurance UK cover dental and optical costs?
Protecting your health is one of the smartest business decisions you can make as a contractor. It's an investment in your most important asset: your ability to earn.
Ready to see how affordable peace of mind can be? Get a free, no-obligation quote from WeCovr today and let our experts find the perfect private health cover for you.
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.
