Private Health Insurance for Freelancers & Self-Employed UK
As an FCA-authorised expert with over 800,000 policies issued, WeCovr understands the UK market. This guide simplifies private medical insurance for freelancers, helping you secure vital health cover and protect your income when you don't have an employer's scheme.
How to get PMI when you're not covered by an employer scheme
When you work for yourself, you are the business. Your health directly impacts your income, making health security a top priority. Unlike employees who often benefit from a company health scheme, freelancers and the self-employed must arrange their own cover.
The process might seem daunting, but it's straightforward when you know the steps. Getting private medical insurance (PMI) involves assessing your needs, understanding what policies cover, choosing the right level of protection, and comparing quotes from leading UK insurers. Using an independent broker can make this process seamless and ensure you find the best value for your specific circumstances.
This guide will walk you through everything you need to know, from the fundamentals of cover to the tax implications for your business.
Why Should Freelancers Consider Private Health Insurance?
For the UK's 4.2 million self-employed professionals, time off due to illness isn't just an inconvenience; it's a direct loss of income. Without the safety net of statutory sick pay or a generous employer package, a long wait for treatment can be financially devastating. This is the primary reason why private health cover is not a luxury, but a crucial business continuity tool for freelancers.
The Reality of NHS Waiting Times
The NHS is a national treasure, providing exceptional care to millions. However, it's currently facing unprecedented pressure.
- Waiting Lists: Recent NHS England data reveals the total waiting list for routine consultant-led treatment stands at over 7.5 million. This means millions are waiting for procedures like hip replacements, cataract surgery, and hernia repairs.
- Diagnostic Delays: A significant number of patients wait more than the six-week target for key diagnostic tests, delaying diagnoses and subsequent treatment plans.
- Cancer Treatment: While urgent cancer referrals are prioritised, targets for starting treatment within 62 days are frequently being missed.
For a self-employed individual, waiting months for treatment can mean months without work. Private medical insurance is the bridge over this uncertainty.
Key Benefits of PMI for the Self-Employed:
- Speed of Access: Bypass long NHS queues for consultations, diagnostics, and treatment. Get diagnosed and treated faster, allowing you to return to work sooner.
- Choice and Control: Choose your specialist, consultant, and hospital from an approved list. Schedule appointments and surgery at times that minimise disruption to your business.
- Comfort and Privacy: Recover in a private room with an en-suite bathroom, visitor flexibility, and often better food choices, creating a less stressful healing environment.
- Access to Specialist Care: Gain access to certain drugs, treatments, and breakthrough therapies that may not be available on the NHS due to cost or NICE (National Institute for Health and Care Excellence) guidelines.
- Peace of Mind: Knowing you have a plan in place to handle health issues provides immense psychological relief, allowing you to focus on growing your business.
Understanding What Private Medical Insurance Actually Covers
This is the most critical part of your decision-making process. A common misconception is that PMI covers every eventuality, but it is specifically designed for a particular type of care.
The Golden Rule: Acute vs. Chronic Conditions
UK 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. Examples include a joint replacement, cataract surgery, removing gallstones, or treating a hernia.
- A Chronic Condition is a disease, illness, or injury that has one or more of the following characteristics: it needs ongoing or long-term monitoring, requires palliative care, has no known 'cure', or is likely to recur. Examples include diabetes, asthma, arthritis, and high blood pressure.
PMI does not cover chronic conditions. You will still rely on the NHS for the long-term management of any chronic illnesses.
The Rule on Pre-existing Conditions
Insurers will also not cover pre-existing conditions—any illness or injury for which you have experienced symptoms, received medication, or sought advice from a medical professional before the start of your policy. We will explore how this is managed in the underwriting section below.
The table below gives a general overview of what is typically included and excluded from a standard PMI policy.
| What's Typically Covered by PMI? | What's Typically NOT Covered by PMI? |
|---|---|
| In-patient and day-patient treatment (hospital stays) | Chronic conditions (e.g., diabetes, asthma) |
| Consultations with specialists | Pre-existing conditions |
| Diagnostic tests (MRI, CT scans) | Emergency services (A&E) |
| Surgery and operating theatre costs | Normal pregnancy and childbirth |
| Cancer treatment (often a core benefit with options) | Cosmetic surgery |
| Mental health support (varies by policy) | Organ transplants |
| Out-patient therapies (e.g., physiotherapy) | Treatment for addiction (alcohol/drugs) |
Always read the policy documents carefully, as the specifics can vary significantly between insurers and policy levels.
How Does Underwriting Work for Individual PMI Policies?
Underwriting is the process an insurer uses to assess your health and medical history to decide the terms of your policy. For individual plans, there are two main types.
1. Moratorium Underwriting
This is the most common and simplest method. You don't need to complete a detailed medical questionnaire upfront.
- How it works: The policy automatically excludes any pre-existing conditions you've had symptoms of, or received treatment for, in the last five years.
- The 'rolling' part: If, after your policy starts, you go for a continuous two-year period without experiencing any symptoms, needing treatment, or seeking advice for that specific condition, the exclusion may be lifted, and it could become eligible for cover.
- Pros: Quick and easy to set up. Less paperwork.
- Cons: There can be uncertainty about what's covered. A claim may be delayed while the insurer investigates your medical history to see if the condition was pre-existing.
Example: You suffered from knee pain three years before taking out your policy. With moratorium underwriting, any knee-related issues would be excluded for the first two years of your cover. If you remain symptom-free for those two years, your knee problems could then be covered.
2. Full Medical Underwriting (FMU)
This method involves providing a complete picture of your medical history from the outset.
- How it works: You complete a detailed health questionnaire, disclosing all previous and current medical conditions. The insurer may also request access to your medical records from your GP.
- The outcome: The insurer reviews your information and provides a definitive list of what is and isn't covered from day one. They may apply specific exclusions to your policy for certain conditions.
- Pros: Complete clarity and certainty from the start. You know exactly where you stand, and claims can be processed more quickly.
- Cons: The application process is longer and more intrusive. Any conditions you declare are likely to be permanently excluded.
Moratorium vs. Full Medical Underwriting: A Comparison
| Feature | Moratorium Underwriting | Full Medical Underwriting (FMU) |
|---|---|---|
| Application Process | Quick and simple, no initial medical questionnaire. | Longer, requires a detailed health declaration. |
| Clarity on Cover | Less certainty initially; determined at the point of a claim. | Full clarity from day one; exclusions are specified. |
| Cover for Pre-existing | Conditions may become eligible for cover after 2 years. | Declared conditions are usually permanently excluded. |
| Claim Speed | Can be slower as insurer investigates medical history. | Generally faster as cover is already defined. |
| Best For | People with a clean bill of health or minor past issues. | People who want absolute certainty about their cover. |
An expert PMI broker, such as WeCovr, can discuss your medical history with you and advise on which underwriting option is most suitable for your needs.
Key Factors That Determine Your PMI Premium
As a freelancer, every penny counts. Understanding what drives the cost of your premium allows you to make informed decisions and build a policy that fits your budget.
- Age: This is one of the biggest factors. The older you are, the higher the statistical likelihood of needing medical treatment, so premiums increase with age.
- Location: Where you live matters. Treatment costs, particularly for private hospitals, are significantly higher in major cities like London. Insurers have different pricing zones to reflect this.
- Smoker Status: Smokers are considered higher risk and will pay more than non-smokers.
- Level of Cover: A comprehensive policy with full outpatient cover, unlimited diagnostics, and mental health support will cost more than a basic plan that only covers in-patient treatment.
- The Excess: This is the amount you agree to pay towards a claim. A higher excess will result in a lower monthly premium.
- The Hospital List: Insurers offer tiered lists of hospitals. A policy that gives you access to every private hospital in the UK, including prime London clinics, will be the most expensive. Opting for a list of local or partner hospitals can significantly reduce the cost.
How to Customise Your Policy and Control Costs
You have considerable control over the price of your private medical insurance UK policy. By adjusting a few key levers, you can tailor cover to be both effective and affordable.
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Choose Your Excess: The excess is the portion of a claim you pay yourself. This can range from £0 to £1,000 or more.
- How it works: If you have a £250 excess and make a claim for £2,000, you pay the first £250 and the insurer pays the remaining £1,750.
- Cost Impact: Opting for a higher excess (e.g., £500 instead of £100) will directly lower your monthly premium. It’s a trade-off between a lower fixed cost and a higher potential one-off cost if you claim.
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Select a Hospital List: You don't always need access to every hospital in the country.
- How it works: Insurers offer different lists, such as a local list, a national list (excluding expensive central London hospitals), or a premium unrestricted list.
- Cost Impact: Choosing a more restricted hospital list is one of the most effective ways to reduce your premium.
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Add the 'Six-Week Option': This is a hugely popular way to save money.
- How it works: If the NHS can provide the in-patient treatment you need within six weeks of it being recommended, you agree to use the NHS. If the NHS waiting list is longer than six weeks, your private cover kicks in.
- Cost Impact: This can reduce your premium by 20-30% as it leverages the NHS for more timely treatments, while still protecting you from long waits.
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Limit Outpatient Cover: Outpatient services (consultations and diagnostics that don't require a hospital bed) can be a major cost driver.
- How it works: You can choose full outpatient cover, a limited annual amount (e.g., £500 or £1,000), or no outpatient cover at all (relying on the NHS for diagnostics).
- Cost Impact: Reducing or removing outpatient cover will substantially decrease your premium. A common compromise is to choose a policy with a financial limit on outpatient care.
How Choices Impact Your Premium
| Policy Choice | Impact on Monthly Premium |
|---|---|
| Increase your excess (e.g., from £100 to £500) | Significant Decrease |
| Choose a limited hospital list (e.g., local) | Significant Decrease |
| Add the 6-Week Option | Moderate to Significant Decrease |
| Reduce or remove outpatient cover | Significant Decrease |
| Remove optional extras (e.g., travel) | Small Decrease |
By mixing and matching these options, you can design a private health cover plan that provides a robust safety net without breaking the bank.
Can I Claim PMI as a Business Expense?
This is a frequent and important question for the self-employed. The answer depends on your business structure.
For Sole Traders & Partnerships
If you are a sole trader or in a partnership, private medical insurance is generally not considered an allowable business expense by HMRC. You must pay the premiums from your post-tax income. The logic is that the policy benefits you personally, not "wholly and exclusively" the business.
For Limited Company Directors
If you operate as a limited company, the situation is different.
- Allowable Expense: The company can pay the health insurance premium for you, the director. This payment is an allowable expense for the company, meaning it can be deducted from the company's profit before calculating Corporation Tax.
- Benefit in Kind: However, HMRC treats this as a 'benefit in kind' (P11D benefit) for the director. The value of the premium is added to your personal income, and you will pay income tax on it at your marginal rate (20%, 40%, or 45%).
- National Insurance: The company will also have to pay Class 1A National Insurance Contributions (currently 13.8%) on the value of the premium.
Example: Your limited company pays a £1,200 annual PMI premium for you.
- The company can deduct £1,200 from its profits.
- The company pays £165.60 in Class 1A National Insurance (£1,200 x 13.8%).
- If you are a higher-rate taxpayer (40%), you will pay £480 in income tax on this benefit (£1,200 x 40%).
Verdict: While running it through a limited company offers a Corporation Tax saving, the personal income tax and company National Insurance costs often outweigh this benefit. However, it can still be a tax-efficient way of funding the cover compared to paying for it from your already-taxed personal dividend income.
Disclaimer: Tax rules are complex. It is essential to discuss this with your accountant to understand the most tax-efficient approach for your specific circumstances.
Beyond Insurance: The Rise of Wellness and Added Benefits
Modern private health insurance is evolving. The best PMI providers are no longer just passive payers of claims; they are active partners in your health and wellbeing. They recognise that it's better to help you stay healthy than to pay for treatment when you're ill.
This has led to a wealth of added-value benefits, often included as standard:
- Digital GP Services: Get 24/7 access to a GP via phone or video call, often with the ability to get prescriptions, referrals, and fit notes without leaving your home office. This is invaluable for freelancers who can't afford to waste hours in a waiting room.
- Mental Health Support: Many policies now include access to confidential helplines, counselling sessions (both face-to-face and virtual), and apps for mindfulness and cognitive behavioural therapy (CBT).
- Wellness Programmes: Some insurers, like Vitality, have built their entire model around rewarding healthy behaviour. They offer discounts on gym memberships, fitness trackers, and healthy food, as well as rewards like cinema tickets and coffee for staying active.
- Health and Lifestyle Advice: Access to expert advice on nutrition, sleep, fitness, and stress management to help you proactively manage your wellbeing.
At WeCovr, we enhance this value further. When you arrange a policy through us, you not only get expert advice but also exclusive perks designed for a healthy lifestyle, including:
- Complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app to help you manage your diet effectively.
- Discounts on other essential insurance products, such as life insurance and income protection, helping you build a comprehensive financial safety net for less.
Why Use a Broker Like WeCovr?
While you can go directly to an insurer, using an independent, specialist health insurance broker offers significant advantages, especially for a busy freelancer.
- Market-Wide Access: A good broker isn't tied to one provider. They have access to policies from across the market and can compare them on a like-for-like basis to find the best fit for your needs and budget.
- Expert, Impartial Advice: The UK PMI market is complex. A broker understands the nuances of different policies, from the definitions of cancer cover to the specifics of hospital lists. They can translate the jargon and guide you to the right choices. WeCovr is fully authorised and regulated by the Financial Conduct Authority (FCA), so you can be sure our advice is impartial and professional.
- No Cost to You: Our service is completely free for you to use. Brokers are paid a commission by the insurer you choose, which is already built into the premium. You don't pay more for using our expertise; in fact, we can often find deals that are not available to the public.
- We Do the Hard Work: Comparing quotes, reading policy documents, and filling out application forms is time-consuming. We handle all of that for you, presenting you with a clear, concise recommendation.
- Ongoing Support: Our relationship doesn't end when the policy starts. We are here to help you at renewal to ensure your cover remains competitive, and can even offer assistance if you run into any issues when making a claim. Our high customer satisfaction ratings reflect our commitment to our clients.
Is private health insurance worth it for a self-employed person?
Can I get cover for a health condition I already have?
How much does private health insurance cost for a freelancer in the UK?
Do I need a medical exam to get PMI?
Ready to take control of your health and protect your freelance business? The expert, friendly team at WeCovr is here to help. We'll compare the leading UK providers for you, explain your options in plain English, and find a policy that gives you peace of mind without stretching your budget.
Get your free, no-obligation quote today and see how affordable protecting your health can be.
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!