TL;DR
Losing your job is one of life’s most stressful events, and worrying about your family's health cover on top of everything else can feel overwhelming. As an FCA-authorised broker that has helped arrange over 900,000 policies, WeCovr understands the uncertainty you face. This guide explains everything you need to know about your private medical insurance in the UK when you leave your job.
Key takeaways
- How your group health insurance works.
- What typically happens to your cover when you leave your job.
- The crucial options available to you: continuing your policy or starting a new one.
- How to make the best financial and health decision for you and your family.
- Reduced Cost: The employer's purchasing power means premiums are usually lower than for an individual policy. Many employers subsidise or fully pay for the employee's cover.
Losing your job is one of life’s most stressful events, and worrying about your family's health cover on top of everything else can feel overwhelming. As an FCA-authorised broker that has helped arrange over 900,000 policies, WeCovr understands the uncertainty you face. This guide explains everything you need to know about your private medical insurance in the UK when you leave your job.
WeCovr explains your options if you lose employer-provided PMI
For many, a private medical insurance (PMI) plan is one of the most valued employee benefits. It provides peace of mind, offering faster access to diagnosis and treatment for acute medical conditions. But since this cover is tied to your employment, what happens when that employment ends?
This comprehensive guide will walk you through:
- How your group health insurance works.
- What typically happens to your cover when you leave your job.
- The crucial options available to you: continuing your policy or starting a new one.
- How to make the best financial and health decision for you and your family.
Let's demystify the process and give you the clarity you need to move forward confidently.
Understanding Your Employer-Provided Health Insurance
Most company health insurance plans are 'group schemes'. An employer buys a single policy to cover a group of its employees, and often their families too.
Key features of a group PMI scheme:
- Reduced Cost: The employer's purchasing power means premiums are usually lower than for an individual policy. Many employers subsidise or fully pay for the employee's cover.
- Simpler Underwriting: For larger schemes, insurers often waive detailed medical questionnaires. This is known as 'Medical History Disregarded' (MHD) underwriting, meaning even pre-existing conditions might be covered under the group scheme. For smaller schemes, underwriting is still simpler than on the individual market.
- Valuable Benefit: It's a highly sought-after perk that helps employees feel valued and cared for.
The fundamental aspect to remember is that you are a member of the group policy, but you do not own it. Your membership is entirely dependent on your employment status with the company.
Crucial Point: Standard private medical insurance in the UK is designed to cover acute conditions – illnesses or injuries that are short-term and likely to respond to treatment. It does not cover chronic conditions (like diabetes or asthma) or, on new individual policies, pre-existing conditions you had before you joined.
What Happens to Your PMI When You Leave Your Job?
When your employment contract terminates, whether through redundancy, resignation, or dismissal, your membership of the company's group health scheme will also end.
Typically, your cover will cease on one of these dates:
- Your final day of employment.
- The end of the calendar month in which you leave.
Your HR department or the policy administrator should provide you with a 'leaver's pack'. This pack is vital as it will contain information about your policy ending and, most importantly, details on whether you have a 'continuation option'.
If you are placed on 'garden leave', your employment contract is still active, and your benefits, including health insurance, usually continue until your official last day. Always confirm this with your HR department in writing.
A Real-Life Example
Imagine David, a 45-year-old marketing manager in Manchester. He has company PMI with Aviva for himself, his wife, and their son. Two years into the policy, he develops knee pain and uses the PMI for a swift MRI scan and consultation. Six months later, he is made redundant.
His cover will stop on his last day. The knee problem, now diagnosed, will be considered a pre-existing condition if he tries to buy a brand-new policy on the open market. This is the central challenge many face.
Your 3 Main Options After Losing Employer-Provided Health Cover
When your company PMI ends, you are at a crossroads. You have three primary paths to choose from. Understanding the pros and cons of each is essential.
Option 1: Continue Your Policy on a 'Group Leaver' Scheme
This is often the most important option to consider, especially if you have developed health issues.
Many UK PMI providers (like Bupa, AXA Health, and Vitality) offer a 'continuation option'. This allows you to seamlessly transfer from your employer's group scheme to an individual policy with the same insurer, without any new medical underwriting.
| Pros of a Continuation Option | Cons of a Continuation Option |
|---|---|
| No New Medical Underwriting | Potentially More Expensive |
| Covers Conditions Developed on the Group Plan | Locked in with One Insurer |
| Seamless, Uninterrupted Cover | Limited Flexibility on Cover Level |
| Keeps Your Claims History Intact | You Take on the Full Premium Cost |
The biggest advantage here is "no new medical underwriting." This means any medical conditions that arose and were treated while you were on the company plan will continue to be covered by your new individual plan. For David in our example, his knee problem would remain covered. This is a huge benefit that is impossible to get with a new policy.
However, you will now be responsible for the full premium, which can be significantly higher than what you might have been contributing. You also have less flexibility to change your cover level or switch to a cheaper provider.
Option 2: Take Out a New Individual PMI Policy
Your second option is to start fresh and shop around for a new individual health insurance policy.
This involves choosing an insurer and a plan that suits your new budget and needs. You will need to go through medical underwriting.
The main types of underwriting for new policies are:
- Moratorium Underwriting: This is the most common. The policy will automatically exclude any condition you've had symptoms of, or received treatment or advice for, in the five years before the policy starts. However, if you go for a set period (usually two years) without any symptoms, treatment, or advice for that condition, it may become eligible for cover.
- Full Medical Underwriting (FMU): You complete a detailed health questionnaire. The insurer reviews your medical history and decides which conditions, if any, to permanently exclude from your policy. It provides certainty from day one but is more intrusive.
| Pros of a New Individual Policy | Cons of a New Individual Policy |
|---|---|
| Choice & Flexibility | Requires New Medical Underwriting |
| Can Find a Cheaper Premium | Conditions from Your Old Plan are Now Pre-existing |
| Tailor Cover to Your New Budget | Potential for Exclusions |
| Access to Different Insurers & Benefits | A Break in Cover is Possible |
This option is often best for younger, healthier individuals who haven't made any claims or developed conditions on their company scheme.
An expert PMI broker like WeCovr is invaluable here. We can compare the whole market for you, explaining the subtle differences between policies and helping you find the best value at no extra cost to you.
Option 3: Rely Solely on the NHS
The UK is fortunate to have the National Health Service (NHS), providing comprehensive healthcare free at the point of use. Forgoing private cover and relying on the NHS is a valid option, especially when finances are tight after a job loss.
However, it's important to be aware of the current pressures on the service. According to NHS England data, the key challenge is waiting times.
NHS Waiting List Statistics (as of early 2025):
- Total Waiting List: The overall number of people waiting for consultant-led elective care in England remains stubbornly high, hovering around 7.5 million treatment pathways.
- Long Waits: While progress has been made on the longest waits, a significant number of patients still wait many months for routine procedures like hip replacements or cataract surgery.
Relying on the NHS means accepting these realities. You will receive excellent care, but you will have less control over when, where, and by whom you are treated.
| Feature | Private Medical Insurance (PMI) | National Health Service (NHS) |
|---|---|---|
| Waiting Times | Days or weeks for diagnosis and treatment. | Can be many months or over a year for routine procedures. |
| Choice of Hospital | Extensive list of private and NHS hospitals. | Generally allocated to your local NHS hospital. |
| Choice of Specialist | Can choose or get a referral to a specific consultant. | Treated by the consultant on duty. |
| Accommodation | Private, en-suite room. | Typically on a ward with other patients. |
| Cost | Monthly premium and potential excess. | Free at the point of use. |
Making the Right Choice: A Step-by-Step Guide
Deciding between continuing, switching, or forgoing cover requires careful thought. Follow these steps to make an informed decision.
1. Immediately Check Your Leaver Information As soon as you know you're leaving, ask HR for your health insurance leaver's pack. This will state if a continuation option is available and, crucially, the deadline for applying. This is often just 30 days from your employment end date. Don't miss it!
2. Honestly Assess Your Health History This is the single most important step. Ask yourself:
- Have I, or any family members on the policy, developed any new medical conditions since the company policy started?
- Have we had any consultations, tests, or treatments?
- Are we currently undergoing diagnosis or treatment for anything?
If the answer to any of these is 'yes', a continuation option is almost always the superior choice, as a new policy will exclude those conditions.
3. Review Your New Financial Situation Losing a job means tightening your belt.
- Continuation Cost: Get a quote from the insurer for the continuation policy.
- New Policy Cost: Get quotes for a new policy. You can often reduce the cost significantly by opting for a higher excess or a reduced hospital list.
- Budget: Work out what you can realistically afford to pay each month.
4. Compare Your Quotes Side-by-Side Don't just look at the price. Compare the details:
- What's covered? (out-patient limits, therapies, mental health)
- What's excluded? (crucial on a new policy)
- What is the excess? (the amount you pay towards a claim)
- Which hospitals are included?
5. Speak to an Independent PMI Broker This complex decision is much easier with an expert on your side. An independent adviser can:
- Explain the quotes you have received in plain English.
- Clarify the long-term impact of the underwriting on each option.
- Do a full market comparison for new policies to ensure you're seeing the best deals.
- Help you tailor a policy to fit your budget.
The team at WeCovr provides this service completely free of charge. We work for you, not the insurer, to find the right solution.
How Much Does Private Health Insurance Cost?
The cost of an individual PMI policy varies widely based on several factors:
- Age: Premiums increase as you get older.
- Location: Cover is typically more expensive in London and the South East due to higher hospital costs.
- Cover Level: Comprehensive plans with high out-patient limits and mental health cover cost more than basic plans.
- Excess (illustrative): A higher excess (e.g., £500) will lower your monthly premium.
- Underwriting: A continuation policy might be more expensive upfront than a new moratorium policy for a healthy person, but its value is in the continuity of cover.
Example Monthly Premiums for a New Mid-Range UK PMI Policy
The table below shows illustrative monthly costs for a new policy with a £250 excess. These are not quotes and are for guidance only.
| Age | Location (Postcode) | Estimated Monthly Premium |
|---|---|---|
| 35 | Manchester (M1) | £55 – £75 |
| 35 | Central London (W1) | £70 – £95 |
| 55 | Manchester (M1) | £100 – £140 |
| 55 | Central London (W1) | £130 – £180 |
To reduce these costs, you could consider options like a '6-week wait' plan, where you use the NHS if the waiting list for your treatment is less than six weeks.
Pre-existing & Chronic Conditions: The Critical Distinction Explained
Understanding what UK PMI does and does not cover is the key to avoiding disappointment later.
Acute Condition
- What it is: A disease, illness, or injury that is likely to respond quickly to treatment and lead to a full recovery.
- Examples: Hernia repair, cataract surgery, joint replacement, diagnosing a new lump.
- PMI Cover: This is what PMI is for.
Chronic Condition
- What it is: An illness that has one or more of the following traits: it needs long-term monitoring, it has no known cure, it's likely to come back, it needs ongoing management.
- Examples: Diabetes, asthma, high blood pressure, arthritis, Crohn's disease.
- PMI Cover: PMI does not cover the ongoing management of chronic conditions. It may cover an acute 'flare-up', but not the day-to-day care.
Pre-existing Condition
- What it is: Any medical condition for which you have experienced symptoms, or received medication, advice, or treatment before your policy start date.
- PMI Cover: On a new policy, these will be excluded, either for a set period (moratorium) or permanently (FMU). On a continuation policy, conditions that arose during your company cover are not classed as pre-existing and remain covered.
Managing Your Wellbeing After Job Loss
Losing your job impacts more than just your finances; it affects your mental and physical wellbeing. While you're sorting out your insurance, it's vital to look after yourself.
Nurturing Your Mental Health
The uncertainty and stress of redundancy can take a toll.
- Maintain a Routine: Try to wake up, eat, and go to bed at regular times. Structure your day with job-seeking, exercise, and relaxation.
- Stay Connected: Don't isolate yourself. Talk to friends, family, or a former colleague. Sharing your feelings can make a huge difference.
- Seek Support: Organisations like Mind and the Samaritans offer free, confidential support if you're struggling to cope.
Looking After Your Physical Health
Staying physically healthy boosts your mood and energy levels.
- Eat Well on a Budget: Focus on whole foods like vegetables, pulses, and lean proteins. Planning meals and cooking from scratch can be both healthier and cheaper than convenience foods.
- Stay Active for Free: You don't need a gym membership. Walking, jogging in a local park, or following free workout videos online are fantastic ways to stay fit.
- Prioritise Sleep: Aim for 7-9 hours of quality sleep per night. A good sleep routine helps regulate your mood and improves cognitive function, which is essential when job hunting.
WeCovr's Added Value for Your Health Journey
We believe in supporting our clients' overall wellbeing. When you arrange a policy through us, you get more than just insurance.
- Free Access to CalorieHero: All WeCovr clients get complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero. It's a fantastic tool to help you manage your diet and stay healthy, especially when your routine has been disrupted.
- Discounts on Other Cover: We can also offer discounts on other policies, like life insurance or income protection, helping you build a comprehensive financial safety net for your family at a reduced cost.
How long do I have to decide on a group leaver or continuation option?
If I take a continuation policy, can I change my cover level?
Will a new private health insurance policy be cheaper than my continuation option?
Can I add my family to a new individual private medical insurance policy?
Take Control of Your Health Cover Today
Losing your job is tough, but you don't have to navigate the complexities of your private health insurance alone. The decision between continuing your old policy and starting a new one has long-term consequences for your health and finances.
The FCA-authorised, expert advisers at WeCovr are here to provide free, impartial advice. We will help you understand your options, compare the market, and find a solution that provides the best protection for your family and your budget.
Get your free, no-obligation PMI quote from WeCovr today.
Sources
- Office for National Statistics (ONS): Mortality, earnings, and household statistics.
- Financial Conduct Authority (FCA): Insurance and consumer protection guidance.
- Association of British Insurers (ABI): Life insurance and protection market publications.
- HMRC: Tax treatment guidance for relevant protection and benefits products.
