TL;DR
Considering a change to your private medical insurance in the UK? As FCA-authorised experts who have helped arrange over 900,000 policies of various kinds, WeCovr explains the crucial difference between switching your provider and stacking multiple policies to help you make the smartest choice for your health and finances. The difference between replacing your policy and holding multiple Navigating the world of private medical insurance (PMI) can feel complex.
Key takeaways
- Rising Premiums: Your renewal price has increased significantly, and you believe you can find a more competitive offer elsewhere.
- Changing Needs: Your life circumstances have changed. Perhaps you've started a family and need cover for them, or you've developed an interest in alternative therapies that your current policy doesn't include.
- Better Benefits: A competitor is offering more comprehensive cover for the same price, such as higher outpatient limits, full cancer care, or better mental health support.
- Poor Customer Service: You've had a negative experience with your current insurer, from a difficult claims process to poor communication.
- Moratorium Underwriting: This is the most common type for new buyers. You don't have to provide a detailed medical history upfront. Instead, the policy automatically excludes treatment for any medical condition you've had symptoms, advice, or treatment for in the five years before the policy start date. However, if you go two full years on the policy without any symptoms, advice, or treatment for that condition, it may become eligible for cover. It’s a "wait and see" approach.
Considering a change to your private medical insurance in the UK? As FCA-authorised experts who have helped arrange over 900,000 policies of various kinds, WeCovr explains the crucial difference between switching your provider and stacking multiple policies to help you make the smartest choice for your health and finances.
The difference between replacing your policy and holding multiple
Navigating the world of private medical insurance (PMI) can feel complex. You might have a policy that no longer feels right for your needs or budget, or you might wonder if one policy is even enough. This leads to a fundamental question: should you switch your policy entirely or stack an additional one on top?
Switching means replacing your current private health insurance policy with a new one from a different provider. The goal is usually to find a better price, more suitable benefits, or superior customer service.
Stacking, on the other hand, means holding more than one health insurance policy at the same time. This is less common but can be a strategic choice for filling specific gaps in an existing policy, such as a basic corporate plan.
Understanding the implications of each path is vital. A wrong move could lead to higher costs or, more critically, a loss of cover for health conditions you thought were protected. This guide will break down everything you need to know to make an informed decision.
What is Switching Private Health Insurance?
Switching your PMI provider is like changing your car or home insurer. You end your contract with one company and begin a new one with another. Millions of people in the UK do this every year to ensure they're getting the best value.
People typically switch their private health cover for several reasons:
- Rising Premiums: Your renewal price has increased significantly, and you believe you can find a more competitive offer elsewhere.
- Changing Needs: Your life circumstances have changed. Perhaps you've started a family and need cover for them, or you've developed an interest in alternative therapies that your current policy doesn't include.
- Better Benefits: A competitor is offering more comprehensive cover for the same price, such as higher outpatient limits, full cancer care, or better mental health support.
- Poor Customer Service: You've had a negative experience with your current insurer, from a difficult claims process to poor communication.
While switching sounds simple, it's the "how" that truly matters. The method of underwriting you choose will determine how your past and future medical conditions are treated.
Understanding Underwriting Options for Switchers
When you apply for a new policy, the insurer needs to understand your health risks. There are three main ways they do this, and one is specifically designed for people who are switching.
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Moratorium Underwriting: This is the most common type for new buyers. You don't have to provide a detailed medical history upfront. Instead, the policy automatically excludes treatment for any medical condition you've had symptoms, advice, or treatment for in the five years before the policy start date. However, if you go two full years on the policy without any symptoms, advice, or treatment for that condition, it may become eligible for cover. It’s a "wait and see" approach.
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Full Medical Underwriting (FMU): With FMU, you complete a detailed health questionnaire, declaring your entire medical history. The insurer's underwriting team assesses your application and may place specific exclusions on your policy for pre-existing conditions. These exclusions are often permanent. The main benefit is clarity from day one—you know exactly what is and isn't covered.
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Continued Personal Medical Exclusions (CPME): This is the gold standard for switching. CPME, sometimes called "protected underwriting," allows you to move to a new insurer while keeping the same underwriting terms you had on your old policy. Any conditions that were already covered will remain covered, and any existing exclusions will be carried over. This is the safest way to switch without losing cover for conditions that have developed while you've been insured.
Expert Tip: Access to CPME terms is often best achieved through an expert PMI broker like WeCovr. We have relationships with leading UK insurers and can ensure your switch is managed seamlessly, preserving your valuable continuity of cover.
The Pros and Cons of Switching Your PMI Policy
Making the decision to switch requires weighing the potential benefits against the risks.
| Aspect | Pros of Switching | Cons of Switching |
|---|---|---|
| Cost | You can often find a cheaper premium for similar or better cover, especially if your current insurer has significantly increased your renewal price. | If you don't switch on a CPME basis, a new policy may be more expensive if you've developed new health conditions. |
| Coverage | You can upgrade your benefits, adding features like mental health cover, dental and optical options, or a higher outpatient limit. | Risk of losing cover for pre-existing conditions if not switched correctly. A new moratorium period could apply. |
| Flexibility | Allows you to adapt your cover as your life and health needs change over time. | Can be administratively time-consuming if you handle it yourself without a broker. |
| Incentives | New insurers may offer introductory discounts or added wellness benefits to attract new customers. | You may lose any "no claims discount" you've built up with your previous insurer, although some insurers offer equivalent discounts. |
Real-Life Example: Sarah's Switch
Sarah, a 45-year-old graphic designer, had a PMI policy for five years. Her renewal premium jumped by 20%. During her time with the insurer, she had developed recurring back pain and received physiotherapy. She was worried that switching would mean her back pain would be considered a pre-existing condition and no longer covered.
She contacted WeCovr, and our advisor explained the CPME switching option. We compared the market and found a policy with a different leading provider that offered similar benefits for 15% less than her renewal quote. By using a CPME switch, her new policy continued to cover her back pain without interruption. She saved money and kept her essential cover.
What is Stacking Private Health Insurance?
Stacking, or holding multiple health insurance policies, is a less common but sometimes very effective strategy. It involves identifying a gap in your primary insurance policy and purchasing a second, separate policy specifically to fill that gap.
Think of it like building with LEGO bricks. Your main policy is the foundation, but you might need a few extra, specialised bricks to complete your ideal structure.
You would not typically hold two comprehensive PMI policies, as this would lead to paying twice for the same cover. Instead, stacking usually involves combining different types of health-related insurance.
Why Would Someone Stack Health Insurance Policies?
The rationale behind stacking is always to achieve more complete protection than a single policy can offer. Here are the most common scenarios:
- Topping Up a Corporate Policy: Many UK employees benefit from a company-provided PMI scheme. However, these policies are often basic. They might have a low outpatient limit, no cover for mental health, or exclude certain advanced cancer treatments. An employee could "stack" a personal policy on top to cover these specific shortfalls.
- Specialised Cover Needs: Your primary PMI might be excellent for UK-based hospital treatment, but you may be a frequent international traveller. In this case, you could stack a dedicated international health insurance policy to cover medical emergencies abroad.
- Cash-Benefit Plans: You could have a comprehensive PMI policy for major treatments and also hold a "Health Cash Plan." A cash plan isn't PMI; it pays out a fixed cash amount for routine healthcare like dental check-ups, eye tests, and physiotherapy sessions, helping you budget for everyday health costs.
- Dental and Optical Insurance: Most PMI policies offer dental and optical cover only as an optional, often expensive, add-on. It can sometimes be more cost-effective to buy a separate, specialist dental insurance policy and stack it with your main PMI.
The Pros and Cons of Stacking PMI Policies
While stacking can create a comprehensive safety net, it introduces its own set of complexities and costs.
| Aspect | Pros of Stacking | Cons of Stacking |
|---|---|---|
| Coverage | Creates highly comprehensive and tailored protection, plugging specific gaps in your primary cover. | Can lead to overlapping benefits, meaning you're paying for the same cover twice. |
| Cost | Can sometimes be cheaper than adding expensive options to a single comprehensive policy. | Almost always more expensive overall than holding a single policy. Managing two sets of premiums can be a hassle. |
| Complexity | Allows you to mix and match providers to get the best of all worlds (e.g., one insurer for hospital care, another for dental). | Claiming can become very confusing. You need to know which policy to claim from for which condition, and insurers may dispute liability. |
| Flexibility | You can cancel the secondary "top-up" policy if it's no longer needed, without affecting your primary cover. | Requires careful management of two separate renewal dates and sets of policy documents. |
Real-Life Example: David's Stacked Policies
David, a 38-year-old marketing manager, has PMI through his employer. He's happy with it, as it provides fast access to specialists and surgery. However, the policy has a £0 outpatient limit, meaning he has to pay for all his initial consultations and diagnostic tests.
After a sports injury, he faced bills for an MRI scan and several consultant appointments. To avoid this in the future, he decided to stack a low-cost personal PMI policy that only covered outpatient diagnostics and consultations up to £1,500. His main corporate policy would cover any subsequent surgery. This was a strategic stack to create complete cover.
Switching vs. Stacking: A Head-to-Head Comparison
To help you decide which path is right for you, here’s a direct comparison of the two strategies.
| Feature | Switching Private Health Insurance | Stacking Private Health Insurance |
|---|---|---|
| Main Goal | To replace an existing policy with a better or cheaper one. | To supplement an existing policy and fill specific coverage gaps. |
| Number of Policies | You end up with one, new policy. | You end up with two or more policies. |
| Cost Implication | Often done to reduce annual premiums. | Almost always increases your total annual insurance cost. |
| Complexity | Simpler to manage one policy. The complexity is in the initial switch process itself. | Complex to manage multiple policies, premiums, and claims processes. |
| Pre-existing Conditions | A major consideration. Must be handled carefully with CPME underwriting to maintain cover. | Your primary policy's rules on pre-existing conditions still apply. The new policy will have its own underwriting. |
| Best For... | Individuals whose renewal premium is too high, whose needs have changed, or who are unhappy with their current provider. | Individuals with a basic group/corporate policy, or those needing specialist cover (e.g., international, dental) not well-served by their main PMI. |
A Critical Note: Pre-existing and Chronic Conditions
This is the single most important concept to understand in UK private health insurance. Standard PMI policies are designed to cover acute conditions that arise after you join.
- An acute condition is a disease, illness, or injury that is likely to respond quickly to treatment and lead to a full recovery (e.g., a cataract, a hernia, a broken bone).
- A chronic condition is an illness that is long-lasting and cannot be cured, only managed (e.g., diabetes, asthma, high blood pressure, arthritis).
Standard UK private medical insurance does not cover the routine management of chronic conditions. It also does not cover pre-existing conditions—any ailment you had before your policy began. This is why the method used for switching is so critical. A mistake could inadvertently classify a condition you thought was covered as a "pre-existing condition" on your new policy, leaving you without cover.
How a PMI Broker Like WeCovr Can Help You Decide
The choice between switching and stacking is not always straightforward. It depends entirely on your personal circumstances, your existing cover, your health history, and your budget. This is where an independent, expert broker becomes invaluable.
An FCA-authorised broker like WeCovr works for you, not the insurance companies. Our service comes at no cost to you, but the advice can be priceless.
Here’s how we help:
- Full Policy Review: We start by analysing your current policy documents. We'll identify its strengths, weaknesses, and, most importantly, its underwriting basis.
- Market Comparison: We use our expertise and technology to compare policies from a wide panel of the UK’s best PMI providers. We look beyond the headline price to the crucial details of the cover.
- Expert Guidance on Switching: If switching is the best option, we will manage the process for you. We specialise in CPME switches, ensuring you don't lose any of your hard-earned cover. We'll handle the paperwork and liaise with both insurers.
- Strategic Advice on Stacking: If your main policy is sound but has gaps, we can advise if a supplementary policy is the right move. We can find targeted, cost-effective options to fill those gaps without you overpaying for duplicated cover.
Navigating this alone can be a minefield. With a broker, you get clarity, confidence, and the peace of mind that your health is protected by the right cover.
Beyond Insurance: WeCovr's Commitment to Your Wellbeing
We believe that supporting your health goes beyond just insurance policies. True wellbeing is about proactive, daily habits. That's why we offer our clients added value to help them lead healthier lives.
- Complimentary Access to CalorieHero: When you take out a PMI or Life Insurance policy with us, you get free access to our AI-powered calorie and nutrition tracking app, CalorieHero. Monitoring your nutrition is a cornerstone of good health, helping to manage weight, boost energy, and reduce the risk of many long-term conditions.
- Discounts on Other Cover: We value our clients' loyalty. When you have a policy with us, you can benefit from discounts on other types of insurance you may need, such as life insurance, income protection, or home insurance.
- A Holistic Approach to Health: A great insurance policy is your safety net, but prevention is always better than cure. We encourage our clients to focus on the pillars of good health:
- Balanced Diet: Aim for a diet rich in fruits, vegetables, lean proteins, and whole grains. Use tools like CalorieHero to stay on track.
- Regular Activity: The NHS recommends at least 150 minutes of moderate-intensity activity a week. Find something you enjoy, whether it’s walking, swimming, cycling, or dancing.
- Quality Sleep: Aim for 7-9 hours of quality sleep per night. It's essential for mental and physical recovery.
- Stress Management: Incorporate mindfulness, yoga, or simple breathing exercises into your day to manage stress levels, a key factor in overall health.
By combining top-tier insurance advice with practical wellness tools, WeCovr provides a comprehensive service designed to protect and enhance your health.
Can I switch my private health insurance if I'm currently undergoing treatment?
Will my premiums still go up if I switch to a new provider?
Is stacking two policies more expensive than one comprehensive policy?
What happens to my No Claims Discount (NCD) if I switch insurers?
Whether you're looking to reduce your costs by switching or enhance your cover by stacking, making the right choice is crucial.
Ready to find the perfect private medical insurance solution for your needs? Get your free, no-obligation quote from WeCovr today and let our experts guide you.
