Private medical insurance

bobobski

At my last job I took out the work PMI scheme so I only pay the tax on it - at the time I was a basic rate taxpayer and it cost £10 per month. I moved firms and am now a higher rate taxpayer, so I assumed the PMI would cost me £20 per month. It actually costs me £50 per month.

Any thoughts on whether it's worth it? Obviously you don't know without seeing into the future whether you'd need it but it's £600 per year when I'm trying to save for a house deposit.

For reference, I did use my PMI at my old firm for an operation earlier this year, which couldn't have been a quicker or more pleasant experience. No ongoing need for medical care following the operation and I haven't used my insurance otherwise. It cost me the £100 excess and that's it. The excess on the new policy is £150.

Many thanks!

jackyann

When analysing this, think in separate spheres:

Medical & nursing: you will not get better medical or nursing care privately (and in some circumstances it will not be as good or comprehensive as the NHS)

Convenience: being seen more conveniently, getting things done more quickly, more consideration for work issues etc.etc. Do check what choice you have - many companies limit who you can see & where (not necessarily an issue if tied in to a workplace policy)

Excludes & ceilings: most private medical insurance will not cover existing conditions or emergency care & will have ceiling costs (which often sound high but in reality exclude all but the most straightforward care). Check these out carefully.

Also consider the option (depending on your other circumstances) of paying (say) £20 a month into an ISA for any emergencies - although it would be agood few years before you had enough for any private medical care!

silvercar

Having a similar issue with a family members insurance. New job and the tax will mean about £500 a year cost. Apparently not many in his company join and consequently the premiums are high as the claim record is not good.

bobobski

Thanks for all the help everyone - since this post contained a lot of personal information I have decided to delete its contents.

ro2778

I take it your swollen organ wasn't your brain?

bobobski

It was not... Not sure how to take that comment..?

ro2778

Let me give you some context, I'm an anaesthetist who regularly finds myself in the NHS sphere mopping up private sector surgical complications, because of course the very same consultants deliver care in both spheres, but the private sector has no capacity to clear up the mess inherently present in medicine and surgery. I would take it however you like.

bobobski

because of course the very same consultants deliver care in both spheres

Given that the doctors are the same, I guess your point is... they're all rubbish so the difference is how quickly you're seen?

ro2778

Just like patients not all doctors are rubbish... but a few of them are.

silvercar

If you have decided you need it, you then need to compare the costs.

So how does paying £50 p/m in Benefit In Kind tax compare to the cost of obtaining private health insurance privately?

bobobski

silvercar wrote: »

If you have decided you need it, you then need to compare the costs.

So how does paying £50 p/m in Benefit In Kind tax compare to the cost of obtaining private health insurance privately?

That's the issue: I haven't decided I need it. I did in the past, and it was great, but I have no way of knowing if I'll need it again. So to drill into it, that's my question: how much is a good past experience worth if you don't know if it'll be repeated?

I really do understand your point but if I didn't sign up to PMI I wouldn't go private precisely because it's too expensive. So it's expensive peace of mind vs guaranteed NHS, which has been rubbish in my recent experience.