Should I double up my private health insurance? I am covered under my wife's work policy already

TylerP

Hi,

I am about to start a new job in the new year.  I'll be earning £90k + bonus.  I have been offered private healthcare through BUPA (individual premiums paid by the company are £940).  I am currently added to my wife's healthcare plan that she gets through her work (Vitality).  I understand that there'll be a Benefit In Kind tax payment of £31 a month if I go for the insurance.

Should I take the insurance?  £30 a month isn't a lot but is it just throwing this money away considering I'll be claiming through my wife's insurance if I need it? On the other hand is it silly to turn down £900 of benefit that my employer is offering me?  I know I'll have to delve through individual policies to know what is covered etc. but is there a quick and dirty answer?

Jeremy535897

I think you have answered your own question. If your preference is to claim on your wife's cover, then unless your new employer's policy would cover something extra, or your wife's policy might be terminated for whatever reason, there seems no point in your employer incurring any extra cost, or you incurring a tax charge.

bargainbetty

If you already have a solid private health policy that covers your needs, then you do not need a second one. 

If the policy you have is not very comprehensive, you may be better switching to the new one. You don't need both. 

pjread

Other point: if being added to the wife's policy is at a cost, and that cost is higher than the tax charge to you, then maybe get removed from that (assuming all else is equal).

BTW: at 90k, if you get another 10k+ from anywhere else and it tips you over 100k adjusted net income bear in mind you start losing your tax free personal allowance, so might hit an effective 60% tax rate on this, which'd work out about £45/month

TylerP

Thanks all, very helpful! 

 @pjread good point on the extra 10k.  Bonus for the job means it is likely I'll be going over the £100k threshold, so all else being equal it probably does make sense for me to stay on my wife's policy.