Which health insurance is the cheapest?

10 min Read Published: 08 Apr 2021

Which health insurance is the cheapest?A reported 4.6 million patients are currently awaiting NHS treatment, the highest since records began. With waiting lists set to grow further in the coming months, many people are considering taking out their own private health insurance policies, meaning they can access treatment if needed and skip the NHS queues. It does come at a cost however and so in this article, we explain what health insurance is, what it covers and whether you should consider it. We also explain the types of cover available, which type of health insurance is cheapest and where best to buy it.

What is private health insurance and what does it cover?

Health insurance - sometimes referred to as private health insurance or private medical insurance - is a type of insurance policy that pays towards the cost of private medical treatment. There are many different types of health insurance, ranging from the most basic type of policy that covers a limited amount of treatment, right up to the most comprehensive cover that pays out for unlimited tests, scans and treatment as well as additional benefits such as access to new drugs and cash payments if you require an overnight stay.

There are a number of considerations when buying health insurance, such as the excess you are willing to pay and the type of underwriting you would prefer. Generally speaking, the higher the excess you choose the cheaper the cover and most insurers offer excess options of £0, £100, £250, £500 and £1,000, although some do go up to £5,000.

We explain health insurance and what it covers in more detail in our article "What does health insurance cover?"

What are the different types of health insurance you can buy?

Broadly speaking, health insurance is broken down into three types of cover; basic, intermediate and comprehensive. Most health insurance providers offer three levels of cover, however, the cover varies from provider to provider making it difficult to compare policies as they are rarely like-for-like. In order to try and explain the main differences between basic, intermediate and comprehensive cover, we have provided a table below that demonstrates how each policy could differ.

Again, it is worth stressing that the table below is to help demonstrate how the different levels of cover differ and it is likely to be different depending on which insurance company you choose. We would always recommend that you speak to an independent health insurance specialist* when comparing cover to ensure that you are getting the very best health insurance policy for your own circumstances. We explain the types of health insurance you can buy in more detail in our article "What type of health insurance should I get?"

Types of health insurance and approximate monthly cost

Benefits Basic health insurance policy Intermediate health insurance policy
Comprehensive health insurance policy
Tests, Scans & Consultations None or Limited Limited Unlimited
Hospital accommodation and nursing care Yes Yes Yes
Outpatient care No Yes Yes
Extended hospital list No Sometimes Yes
Alternative therapies such as osteopathy & acupuncture No No Yes
Mental healthcare No Sometimes Yes
Advanced cancer cover No Sometimes Yes
Cash payment for overnight stay No Sometimes Yes
Approximate cost per month* £30 - £40 £35 - £60 £45 - £85

*cost based on a 35 year old non smoker

Which is the cheapest health insurance policy?

The cost of health insurance varies from insurer to insurer and so there isn't one specific policy or provider that is cheaper or better than any other. The cost of health insurance will largely depend on the type of policy you choose, your age, your smoker status and where you live. For the purposes of the quotes below, we have concentrated on the most basic type of health insurance.

Cheapest health insurance policy - Living in Devon

Age Basic health insurance policy monthly cost Insurer
25 year old £20.62 The Exeter
30 year old £23.67 The Exeter
35 year old £25.82 The Exeter
40 year old £29.22 The Exeter
45 year old £34.35 The Exeter
50 year old £35.00 Vitality
55 year old £41.77 Vitality
60 year old £48.51 Vitality

excess selected was £250

Cheapest health insurance policy - Living in London

Age Basic health insurance policy monthly cost Insurer
25 year old £30.55 The Exeter
30 year old £35.01 Vitality
35 year old £35.35 Vitality
40 year old £39.37 Vitality
45 year old £45.18 Vitality
50 year old £48.71
National Friendly
55 year old £57.27
National Friendly
60 year old £72.43 Vitality

excess selected was £250

As you can see from our tables above, the cost of health insurance varies depending on - amongst other things - your age and location, however, our research suggests that The Exeter and Vitality are likely to provide some of the cheapest health insurance quotes for most people. It is worth remembering that each health insurance provider is likely to offer a slightly different type of health insurance policy and so you should always speak to an independent health insurance specialist before making a final decision as they can compare the products side by side so you know exactly what you are buying. We have vetted the services of an independent health insurance specialist* that guarantees to match any like for like quote that you receive elsewhere, so you can be confident that they have your best interests at heart and will secure the cheapest health insurance policy for you. If they can't, they will give you a £50 voucher.

Should you get health insurance?

This is a difficult question to answer because everyone is different and each person is likely to have a different set of priorities. We have provided a number of questions below that you can ask yourself when deciding whether you should get health insurance.

Are you concerned about current NHS waiting times?

If the speed at which you can gain access to treatment is important to you then private health insurance would be a sensible purchase. We chatted to Emma Thomson in a recent podcast where she spoke openly about her breast cancer diagnosis and how her health insurance policy meant that she was able to gain access to life-saving surgery just a couple of weeks after her diagnosis. You can listen to her story by clicking on the play button below.

Have you got a history of poor health?

Health insurance policies do not cover you for any condition you have sought advice or treatment for in the last five years. In addition, health insurance policies do not cover long term or chronic conditions such as Crohn's Disease or Diabetes. You need to weigh up how likely it is that you will be able to claim on the policy and whether it is worth the monthly premium.

Would you prefer to choose how, where and when you are treated?

If you would like to have more of a say in how and where you are treated then you should consider taking out health insurance. It is unlikely you will get a choice as to how, where or when you are treated on the NHS and missing an appointment could result in an even longer wait.

Can you afford health insurance?

It is worth remembering that health insurance premiums tend to go up each year and the renewal price will be based on your age and health at the time of the renewal. However, just like car, pet and home insurance, there is nothing stopping you from shopping around each year and there are other things you can do to bring down the cost of the cover such as increasing the excess. You should consider speaking to an independent health insurance specialist* every time you get your renewal quote as they can compare every policy on the market and ensure you are getting the best policy at the best possible price.

 

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