Self-Employed and Freelancers Do You Need Private Health Insurance
As an FCA-authorised broker that has helped arrange over 800,000 policies, WeCovr understands the unique pressures facing the UK's self-employed. This guide explores if private medical insurance is the right safety net for you.
WeCovr explores PMI options for self-employed workers who dont get company benefits
For the UK's 4.25 million self-employed workers, freedom and flexibility are paramount. You are the CEO, the finance department, and the chief coffee maker. But this autonomy comes with a trade-off: there's no safety net. No sick pay, no company-sponsored benefits, and no one to cover your workload if you fall ill.
When your income is directly tied to your ability to work, your health isn't just a personal matter—it's your most critical business asset. An unexpected illness or injury can mean more than just a health scare; it can lead to project delays, lost clients, and significant financial strain.
This is where private medical insurance (PMI) comes in. It's a policy designed to work alongside the NHS, offering you a fast-track route to diagnosis and treatment for acute medical conditions. For a freelancer or sole trader, this isn't a luxury; it's a strategic tool for business continuity.
The Stark Reality: Why Your Health is Your Greatest Business Asset
The core principle of being self-employed is simple: if you don't work, you don't get paid. Unlike an employee who benefits from Statutory Sick Pay (SSP) and potentially a generous company sick pay scheme, a freelancer's income stops the moment they are unable to work.
Consider these scenarios:
- A graphic designer develops severe back pain, making it impossible to sit at a desk. They need a specialist consultation and an MRI scan to find the cause.
- A self-employed plumber injures their knee and requires minor surgery. Every week they wait for treatment is a week without income.
- A freelance consultant needs a hernia operation. The delay means postponing lucrative client projects and risking damage to their professional reputation.
In each case, the primary obstacle isn't just the health condition itself, but the time it takes to get treatment. This is where the current pressures on the NHS become a direct business risk.
NHS Waiting Lists: A Growing Concern for UK Workers
The National Health Service is a national treasure, providing exceptional care to millions. However, it is currently facing unprecedented demand. According to the latest NHS England statistics, the total waiting list for routine consultant-led elective care stood at around 7.54 million in early 2025.
Of those on the list, a significant number are waiting for extended periods:
- Over 3.2 million patients are waiting more than 18 weeks.
- Almost 300,000 patients are waiting more than 52 weeks (one year) for treatment.
For a self-employed individual, a wait of 18 weeks, let alone a year, can be financially catastrophic. Private medical insurance is designed to bypass these queues, giving you access to prompt diagnosis and treatment in a private facility, often within weeks.
What Does Private Medical Insurance for the Self-Employed Cover?
Understanding what PMI does—and doesn't—cover is essential. It's not a replacement for the NHS but rather a complementary service for specific situations.
The Golden Rule: PMI covers acute conditions that arise after you take out your policy.
- 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 cataracts, joint replacements, hernias, or diagnosing unexplained symptoms.
- A chronic condition is a long-term illness that cannot be cured, only managed. Examples include diabetes, asthma, high blood pressure, and arthritis. Standard private medical insurance in the UK does not cover the ongoing management of chronic conditions.
Core Components of a PMI Policy
Your private health cover is built from a core foundation with optional extras. This allows you to tailor the policy to your specific needs and budget.
-
In-patient and Day-patient Treatment (Core Cover)
- In-patient: This covers you when you are admitted to a hospital and stay overnight for treatment, such as for surgery. It includes costs like the hospital room, surgeons' fees, anaesthetist fees, and nursing care.
- Day-patient: This is for when you are admitted to a hospital for a planned procedure but do not need to stay overnight. Many minor surgical procedures fall into this category.
-
Out-patient Cover (Optional Add-on) This is one of the most important and flexible parts of a policy. It covers diagnostic tests and consultations that do not require a hospital bed. This includes:
- Initial consultations with a specialist.
- Diagnostic scans like MRI, CT, and PET scans.
- Pathology tests (blood tests).
- Follow-up consultations.
You can choose a full-cover option or set a financial limit (e.g., £500, £1,000, or £1,500 per year) to make your premium more affordable.
What is Typically Excluded from a Standard PMI Policy?
It’s crucial to be aware of the standard exclusions found in most UK PMI policies:
- Pre-existing Conditions: Any medical condition for which you have experienced symptoms, sought advice, or received treatment before the policy start date. (More on this below).
- Chronic Conditions: As mentioned, long-term management is not covered.
- Emergency Services: A&E visits, ambulance services, and immediate trauma care remain the domain of the NHS.
- Normal Pregnancy & Childbirth: While complications might be covered, routine maternity care is not.
- Cosmetic Surgery: Unless it's reconstructive surgery required after an accident or illness covered by the policy.
- Self-inflicted Injuries: Including those related to substance abuse.
- Dental and Optical: These are usually offered as a separate add-on or a health cash plan.
Understanding Underwriting: The Key to Pre-Existing Conditions
When you apply for PMI, the insurer needs to know about your medical history to decide what they can cover. This process is called underwriting. For the self-employed, choosing the right type of underwriting is a key decision.
There are two main types:
| Underwriting Type | How It Works | Pros | Cons |
|---|---|---|---|
| Moratorium (Most Common) | You don't declare your full medical history upfront. The policy automatically excludes any condition you've had in the 5 years before joining. | Quick and easy to set up. No medical forms. | Less certainty at the start. Claims can be slower as the insurer needs to check your medical history then. |
| Full Medical Underwriting (FMU) | You complete a detailed health questionnaire. The insurer reviews it and tells you exactly what is and isn't covered from day one. | Provides complete clarity from the start. Faster claims process as exclusions are pre-agreed. | Application process is longer. Exclusions are permanent unless you request a review. |
The Moratorium "Two-Year Rule": With moratorium underwriting, a pre-existing condition can become eligible for cover later on. If you go for a continuous two-year period after your policy starts without having any symptoms, treatment, medication, or advice for that specific condition, it may no longer be considered pre-existing and could be covered in the future.
An expert PMI broker like WeCovr can help you decide which underwriting method is best for your personal circumstances.
How to Make Private Health Insurance Affordable on a Freelancer's Budget
The idea of another monthly outgoing can be daunting when you have a variable income. However, PMI is highly customisable, and there are several levers you can pull to design a policy that protects your health without breaking the bank.
-
Choose Your Excess Level An excess is the amount you agree to pay towards the cost of any claim you make. It's paid once per policy year, per person. The higher your excess, the lower your monthly premium.
- Example: You have a £250 excess. Your private surgery costs £4,000. You pay the first £250, and your insurer pays the remaining £3,750.
- Cost-saving tip: Increasing your excess from £100 to £500 can reduce your premium by as much as 20-30%.
-
Select a Guided Hospital List Insurers have different lists of private hospitals where you can receive treatment. These are often tiered:
- Premium List: Includes top-tier private hospitals, often in Central London. This is the most expensive option.
- National List: A comprehensive list of quality private hospitals across the UK.
- Guided or Local List: A more restricted list of hospitals, which can significantly lower your premium. You still get excellent care, just with less choice of location.
-
Use the "6-Week Wait" Option This is one of the most popular and effective ways to reduce your costs.
- How it works: If you need in-patient or day-patient treatment, you first check the NHS waiting list for that procedure. If the NHS can treat you within six weeks, you use the NHS. If the wait is longer than six weeks, your private cover kicks in immediately.
- The Benefit: Since you are still using the NHS for shorter waits, the risk to the insurer is lower, and they pass this saving on to you through a much lower premium. It's a pragmatic balance between cost and speed of access.
-
Limit Your Out-patient Cover As out-patient diagnostics are a major driver of claims costs, limiting this cover is a powerful cost-control tool. Instead of "full cover," you could opt for a limit of £1,000 per year. This is often enough to cover a consultation and a key scan (like an MRI), which is the main bottleneck in the diagnostic process.
By combining these options, a healthy 40-year-old freelancer could build a robust policy for a manageable monthly fee.
| Cost-Saving Tactic | Potential Premium Reduction | Best For Freelancers Who... |
|---|---|---|
| Increase Excess to £500 | 20-30% | Are happy to contribute a manageable amount towards a claim. |
| Choose a Guided Hospital List | 15-25% | Prioritise cost over having the widest choice of hospitals. |
| Add a 6-Week Wait Option | 25-40% | Want a safety net for long waits but are happy to use the NHS if it's quick. |
| Limit Out-patient Cover | 10-20% | Mainly want PMI to cover the big costs of surgery and diagnostics. |
Is Self-Employed Health Insurance Tax Deductible in the UK?
This is a critical question for any business owner. The answer depends entirely on your business structure.
For Sole Traders and Partnerships
Unfortunately, for sole traders, private medical insurance is not typically an allowable business expense. HMRC considers it a personal benefit, as your personal health is not deemed "wholly and exclusively" for the purposes of your trade. The cost must be paid from your post-tax income.
For Limited Company Directors
If you run your own limited company, the situation is different.
- The company can pay for your PMI policy. This is treated as a legitimate business expense, just like staff training or software subscriptions.
- The cost is tax-deductible for the company. This means the premium cost can be offset against the company's profits, reducing its Corporation Tax bill.
The Catch: Benefit in Kind (P11D) While the company gets tax relief, the health insurance is considered a "benefit in kind" for the director receiving it. This means:
- The director will have to pay personal income tax on the value of the benefit (the cost of the premium). This will be declared on their self-assessment tax return.
- The company will have to pay Class 1A National Insurance Contributions (NICs) on the value of the premium. The rate for 2024/25 is 13.8%.
Even with the personal tax liability, it can still be more tax-efficient for the company to pay than for the director to pay personally from their post-tax salary or dividends.
Here is a simplified summary:
| Business Structure | Can the Business Pay? | Is it a Tax-Deductible Expense for the Business? | Is it a Taxable Benefit for the Individual? |
|---|---|---|---|
| Sole Trader | No (must be paid personally) | No | N/A |
| Limited Company | Yes | Yes (reduces Corporation Tax) | Yes (Director pays Income Tax, Company pays Class 1A NICs) |
Comparing the UK's Best Private Health Insurance Providers
The UK PMI market is competitive, with several excellent providers offering a range of policies. While the "best" provider is subjective and depends on your individual needs, here are the main players you'll encounter.
| Provider | Key Strengths & Focus | Indicative Trustpilot Score (2025) |
|---|---|---|
| Aviva | One of the UK's largest insurers. Offers a strong core product with clear, comprehensive options. Well-regarded for its straightforward claims process. | 4.4 / 5.0 |
| AXA Health | A global insurance giant with a focus on a proactive approach to health. Strong mental health support and access to a wide hospital network. | 4.3 / 5.0 |
| Bupa | The most recognised brand in UK health insurance. Offers direct access to its own Bupa Cromwell Hospital and an extensive network of partner facilities. | 4.1 / 5.0 |
| Vitality | Unique in its focus on rewarding healthy living. You earn points and discounts for being active, which can reduce your premium and give you perks like free cinema tickets. | 4.2 / 5.0 |
| The Exeter | A Friendly Society owned by its members, not shareholders. Known for excellent customer service and considering members with more complex health histories. | 4.7 / 5.0 |
Navigating the subtle differences in policy wording, hospital lists, and optional benefits between these providers can be complex. This is where using an independent PMI broker is invaluable. WeCovr provides impartial, whole-of-market advice to find the policy that truly fits your needs as a self-employed professional, at no extra cost to you.
A Holistic Approach: Protecting More Than Just Your Health
For a freelancer, a comprehensive safety net goes beyond just paying for treatment. It's about protecting your income and promoting your overall wellbeing to prevent illness in the first place.
Income Protection Insurance: The Other Side of the Coin
While PMI pays for your medical bills, Income Protection Insurance pays you. If you're unable to work due to any illness or injury (not just acute ones), this policy provides a regular, tax-free monthly income until you can return to work.
For a self-employed person, a combination of PMI (to get you treated faster) and Income Protection (to pay your bills while you recover) is the ultimate financial defence.
WeCovr's Added Value: Proactive Wellbeing
We believe in proactive health management. That's why clients who purchase Private Medical or Life Insurance through WeCovr receive complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app. It's a simple, effective tool to help you manage your diet and energy levels—crucial for maintaining the stamina needed for self-employment.
Furthermore, our clients often benefit from discounts on other types of cover, helping you build a complete portfolio of protection in the most cost-effective way.
Simple Wellness Tips for the Busy Freelancer
- Move Every Hour: Set a timer to get up, stretch, and walk around. Combating a sedentary work life is vital.
- Prioritise Sleep: Lack of sleep kills productivity and weakens your immune system. Aim for 7-9 hours of quality sleep per night.
- Block Out "Life Admin": Schedule time for exercise, meal prep, and relaxation just as you would a client meeting.
- Stay Hydrated: Dehydration can cause headaches and fatigue. Keep a water bottle on your desk at all times.
- Acknowledge Mental Strain: Self-employment can be isolating. Stay connected with other freelancers, friends, and family. Don't hesitate to consider a PMI policy with a mental health add-on for professional support if you need it.
Is Private Health Insurance the Right Choice for You?
For the self-employed and freelancers in the UK, private medical insurance is far more than a perk. It's a strategic investment in your continued ability to earn. It provides peace of mind, control over your healthcare, and a swift route back to work.
By understanding how to tailor a policy to your budget—using tools like a higher excess, a 6-week wait option, and a guided hospital list—you can secure robust protection for a manageable cost.
The key is to get expert advice. An independent broker can demystify the jargon, compare the market on your behalf, and build a policy that aligns perfectly with your personal health needs and professional imperatives.
Can I get private health insurance if I already have a medical condition?
Is private health insurance worth it for a young, healthy freelancer?
How much does private health insurance for a self-employed person typically cost?
Does private medical insurance cover dental and optical care?
Ready to protect your health and your livelihood? Get a free, no-obligation quote from WeCovr today. Our expert advisors will compare the UK's leading insurers to find the perfect private health cover for your needs and budget, giving you the peace of mind to focus on what you do best: running your business.
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 800,000+ 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!