TL;DR
As experienced insurance specialists who have arranged over 900,000 policies, WeCovr helps UK residents find the right private medical insurance. This guide explores National Friendly, a unique mutual society offering a distinct alternative to mainstream insurers, focusing on member value over shareholder profit. How National Friendly’s mutual structure differs from commercial insurers, member benefits, profit-sharing approach, and policy options available In the bustling UK private medical insurance market, most providers are large commercial companies.
Key takeaways
- Keeping Premiums Competitive: By reinvesting profits, National Friendly can help to stabilise premiums over the long term, protecting members from the sharp annual increases sometimes seen elsewhere in the market.
- Enhancing Policy Benefits: Surplus funds can be used to add new benefits to policies or improve existing ones without necessarily passing the full cost on to members.
- Discretionary Financial Grants: In some cases, mutuals may offer discretionary grants or support to members facing unexpected hardship, reinforcing the community-based ethos.
- Investing in Better Service: Profits can be channelled into improving technology, customer service, and the efficiency of the claims process.
- Hospital Charges: The costs for your room, nursing care, and other services as an in-patient or day-patient.
As experienced insurance specialists who have arranged over 900,000 policies, WeCovr helps UK residents find the right private medical insurance. This guide explores National Friendly, a unique mutual society offering a distinct alternative to mainstream insurers, focusing on member value over shareholder profit.
How National Friendly’s mutual structure differs from commercial insurers, member benefits, profit-sharing approach, and policy options available
In the bustling UK private medical insurance market, most providers are large commercial companies. They are typically owned by shareholders and listed on the stock exchange. National Friendly, however, operates on a completely different model: it's a mutual society.
This fundamental difference in structure shapes everything from who benefits from profits to the overall ethos of the organisation. Instead of answering to external shareholders demanding dividends, a mutual society is owned by and run for its members—the policyholders. This guide will unpack what this means for you, exploring the unique benefits of their profit-sharing approach and the specifics of their 'My PMI' health insurance plans.
What is a Mutual Society? The National Friendly Difference
Founded in 1868, National Friendly has a long history of putting its members first. A mutual society is a financial organisation owned by its members, not by external investors or shareholders. Think of it like a club where the members are the owners, and the primary goal is to provide the best possible service and value to those members.
This is a stark contrast to a typical PLC (Public Limited Company), whose primary legal duty is to maximise profits for its shareholders.
Mutual vs. Commercial Insurer: A Tale of Two Structures
To understand the impact of this difference, let's compare the two business models side-by-side.
| Feature | National Friendly (Mutual Society) | Typical Commercial Insurer (PLC) |
|---|---|---|
| Ownership | Owned by the policyholders (members). | Owned by external shareholders. |
| Primary Goal | To provide value and benefits to members. | To generate profit for shareholders. |
| Profits | Reinvested back into the society to benefit members. | Distributed to shareholders as dividends or reinvested to grow the business for shareholder benefit. |
| Accountability | Accountable to its members. | Accountable to its board of directors and shareholders. |
| Focus | Long-term member satisfaction and stability. | Short-term financial performance and share price. |
This member-centric approach means that every decision National Friendly makes is guided by a single question: "How will this benefit our members?"
The Power of Profits: How National Friendly Reinvests for Members
One of the most significant advantages of a mutual society is its approach to profits. Without the pressure to pay dividends to shareholders, National Friendly can use any surplus it generates to directly enhance the value it offers to you, the member.
This is often done through several key channels:
- Keeping Premiums Competitive: By reinvesting profits, National Friendly can help to stabilise premiums over the long term, protecting members from the sharp annual increases sometimes seen elsewhere in the market.
- Enhancing Policy Benefits: Surplus funds can be used to add new benefits to policies or improve existing ones without necessarily passing the full cost on to members.
- Discretionary Financial Grants: In some cases, mutuals may offer discretionary grants or support to members facing unexpected hardship, reinforcing the community-based ethos.
- Investing in Better Service: Profits can be channelled into improving technology, customer service, and the efficiency of the claims process.
For those looking for a private medical insurance UK provider with a conscience, this model is highly appealing. It fosters a sense of community and shared purpose that is often absent in a purely commercial transaction. An expert PMI broker like WeCovr can help you compare the long-term value of a mutual provider against traditional insurers to see which best fits your financial and healthcare goals.
A Deep Dive into National Friendly's 'My PMI' Health Insurance
National Friendly's flagship health insurance product is 'My PMI'. It's designed to be flexible, allowing you to build a plan that suits your specific needs and budget. The core of the policy is focused on providing cover for in-patient and day-patient treatment for acute conditions.
Crucial Note: Like all standard UK private medical insurance, My PMI is designed to cover acute conditions—illnesses or injuries that are likely to respond quickly to treatment and return you to your previous state of health. It does not cover pre-existing conditions you had before your policy began, or chronic conditions which require long-term management (e.g., diabetes, asthma, hypertension).
Core Cover: The Foundation of Your Policy
The 'My PMI' plan starts with a robust foundation of core cover. This typically includes:
- Hospital Charges: The costs for your room, nursing care, and other services as an in-patient or day-patient.
- Specialist Fees: Fees for the surgeons, anaesthetists, and physicians who treat you in hospital.
- Diagnostic Tests: Scans and tests like MRI, CT, and PET scans, whether in a hospital setting or on an outpatient basis.
- Cancer Cover: Comprehensive cover for the diagnosis and treatment of cancer, including surgery, radiotherapy, and chemotherapy. This is a cornerstone of most high-quality PMI policies.
- NHS Cash Benefit: A fixed cash payment for each night you choose to receive eligible in-patient treatment on the NHS instead of using your private cover.
Building Your Plan: Optional Extras
Where 'My PMI' truly becomes your own is in the selection of optional add-ons. This allows you to control your level of cover and the cost of your premium.
| Optional Benefit | What It Covers | Who Is It For? |
|---|---|---|
| Outpatient Cover | Consultations with specialists and diagnostic tests that don't require a hospital bed. You can often choose a financial limit (e.g., £500, £1,000, or unlimited). | Anyone who wants faster access to specialists without needing to wait for an NHS referral for consultations. |
| Therapies Cover | Treatment from physiotherapists, osteopaths, chiropractors, and other recognised therapists to aid recovery. | Individuals with active lifestyles, those prone to sports injuries, or anyone wanting swift access to recovery support post-surgery. |
| Mental Health Cover | Access to consultations with psychiatrists and psychologists, and in-patient or day-patient psychiatric treatment. | A vital option for those who want to prioritise their mental wellbeing and ensure fast access to professional support. |
Choosing the right combination of options can be daunting. A specialist broker can provide tailored advice, helping you balance comprehensive cover with a premium that works for you.
Choosing Your Underwriting: Moratorium vs. Full Medical
When you apply for a 'My PMI' policy, you'll need to choose an underwriting method. This is how the insurer assesses your medical history to decide what they will and won't cover.
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Moratorium Underwriting (Most Common): With this option, you don't need to provide your full medical history upfront. Instead, the insurer will automatically exclude treatment for any condition you've had symptoms of, or received advice or treatment for, in the five years before your policy started. However, if you then go two continuous years on the policy without any symptoms, advice, or treatment for that condition, it may become eligible for cover. It's simpler and faster to set up.
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Full Medical Underwriting (FMU): This involves completing a detailed health questionnaire about your medical history. The insurer will review this information and tell you from the outset exactly what is and isn't covered. It takes longer to set up but provides complete clarity from day one.
Understanding Key Policy Details: Excess, Hospital Lists, and Claims
Getting to grips with the finer details of your policy is essential for a smooth experience when you need to use it.
Setting Your Excess: Balancing Premiums and Payouts
An excess is a fixed amount you agree to pay towards the cost of your treatment each policy year. For example, if you have a £250 excess and your first claim of the year is for a £2,000 procedure, you would pay the first £250 and National Friendly would pay the remaining £1,750.
- Higher Excess = Lower Premium: By agreeing to pay more towards your own care, you reduce the insurer's risk, and they reward you with a lower monthly or annual premium.
- Lower Excess = Higher Premium (illustrative): A lower excess (including a £0 option) means you'll pay less out-of-pocket when you claim, but your regular premiums will be higher.
National Friendly's 'My PMI' offers a range of excess options, typically from £0 up to £1,000 or more, giving you direct control over your costs.
The National Friendly Hospital List
Insurers have agreements with specific hospital groups across the UK. The list of hospitals you can use is determined by the option you choose when you take out your policy. A more restricted list (e.g., excluding central London hospitals) will usually result in a lower premium. It's vital to check that the list includes convenient, high-quality hospitals in your local area.
The Claims Process: A Step-by-Step Guide
Making a claim with National Friendly is designed to be straightforward:
- Visit Your GP: Your first port of call is always your NHS GP. If they believe you need to see a specialist, they will provide you with an open referral letter.
- Contact National Friendly: Before you book any appointments or treatment, you must call their claims team. They will check that your condition is covered and pre-authorise the treatment.
- Find a Specialist: National Friendly can help you find a recognised specialist from their approved network.
- Receive Treatment: Attend your consultation and any subsequent treatment.
- Settle the Bill: In most cases, the hospital and specialist will bill National Friendly directly, so you don't have to worry about paperwork. You will only need to pay your chosen excess.
Beyond Insurance: Added Value for National Friendly Members
Being a member of National Friendly comes with perks that extend beyond the core insurance policy. These are designed to support your overall health and wellbeing.
- Friendly GP: A virtual GP service providing 24/7 access to a doctor via phone or video call. This is incredibly useful for getting quick advice, prescriptions, or referrals without waiting for an appointment at your local surgery.
- Mental Health Support: Access to a dedicated helpline for immediate, confidential support from trained counsellors.
- Member-focused Communication: As a member-owner, you'll receive regular updates on the society's performance and have a voice in how it is run, often through AGMs (Annual General Meetings).
These added-value services are a key part of the 'mutual difference', demonstrating a commitment to member welfare that goes beyond just paying claims.
Proactive Health: Small Changes, Big Impact
While having robust health insurance is a fantastic safety net, the best strategy is always to proactively manage your health. Small, consistent habits can dramatically reduce your risk of developing many acute and chronic conditions.
- Balanced Diet: Aim for a diet rich in fruits, vegetables, lean proteins, and whole grains. According to NHS guidance, eating at least five portions of a variety of fruit and veg every day can lower your risk of serious health problems.
- Regular Activity: The NHS recommends at least 150 minutes of moderate-intensity activity a week or 75 minutes of vigorous-intensity activity. This could be anything from a brisk walk or cycling to a gym class.
- Prioritise Sleep: Most adults need 7-9 hours of quality sleep per night. Poor sleep is linked to a range of health issues, including a weakened immune system and higher stress levels.
- Manage Stress: Find healthy ways to manage stress, such as mindfulness, yoga, spending time in nature, or engaging in hobbies you enjoy.
At WeCovr, we believe in supporting our clients' holistic health. That's why customers who purchase private medical or life insurance through us receive complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero, to help them stay on top of their wellness goals.
Is National Friendly the Right Choice for You?
National Friendly's 'My PMI' is an excellent option for individuals, couples, and families who:
- Value the ethical and member-focused approach of a mutual society.
- Want a flexible policy that they can tailor to their exact needs.
- Appreciate added-value benefits like a virtual GP service.
- Are looking for a long-term relationship with an insurer that prioritises stability and member value over short-term profits.
However, the UK private health cover market is diverse. Providers like Aviva, AXA Health, Bupa, and Vitality all offer compelling products with different strengths. The only way to be certain you're getting the best policy for your unique circumstances and budget is to compare them.
Working with an independent PMI broker like WeCovr gives you a comprehensive overview of the market. We take the time to understand your needs and provide impartial advice, ensuring you find the perfect fit. Plus, if you decide to purchase PMI or life insurance with us, you could be eligible for discounts on other types of cover, like home or travel insurance. Our high customer satisfaction ratings reflect our commitment to finding the right solution for every client, at no extra cost to you.
Does National Friendly cover conditions I already have?
What is the difference between an acute and a chronic condition?
Can I add my family to my National Friendly My PMI policy?
How does the National Friendly 'Mutual Benefits' programme work?
Ready to explore your private medical insurance options and see how National Friendly compares to other leading UK providers?
Get Your Free, No-Obligation 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.
