Health insurance growing in popularity - how do you get the best value cover?

Some 14% of the UK adult population (7.6 million) held private medical insurance (PMI) in 2024, according to analysis by consultancy Broadstone.

This is up from 6.7 million people in 2020, an increase of 900,000.

NHS waiting times and workplace health schemes are likely to be the biggest driving factors for more people to opt for PMI. While private cover can mean quicker access to treatment and more choice, it can also be expensive if you don’t choose carefully. 

Here, Which? looks at who is most likely to take out PMI, the different types of cover available, and how to keep costs down.

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Who is most likely to take out health insurance?

Overall, the data suggests that PMI uptake is strongest among working-age adults who are more likely to have workplace benefits or the financial means to pay for cover.

Broadstone’s analysis of the Financial Conduct Authority's Financial Lives 2024 survey found that 18% of adults aged 35–44 (around 1.7 million people) and 19% of those aged 45–54 (around 1.6 million people) held a PMI policy.

Premiums typically rise as you get older, reflecting your increased likelihood of needing to make a claim. Which? research has found that these increases can become particuarly steep when customers reach their 70s, at which point the average premium rises by 41%.

• Find out more: Health insurance for over-60s

Does private medical insurance help you jump NHS queues?

Private medical insurance doesn’t give you a golden ticket to jump NHS waiting lists. Instead, it gives you access to the private healthcare system, which operates separately from the NHS, though some consultants and hospitals work in both.

With PMI, you may be seen more quickly because it can be faster to book a private GP appointment and get referred for treatment. 

This is one of the main reasons people choose private cover. However, it won’t shorten the wait to see your NHS GP or to access NHS services - those queues remain the same for everyone.

• Find out more: best private health insurance 2025

What are the different types of health insurance?

Different policies offer different levels of cover, and the right choice depends on your needs and budget. Broadly, there are two main types:

• Comprehensive cover: this usually includes in-patient and day-patient treatment (such as surgery), as well as out-patient consultations, tests and follow-up care. It may also cover therapies, mental health support and cancer drugs not routinely available on the NHS.
• Basic or treatment-only cover: this tends to focus on in-patient care, such as hospital stays and surgery. It is cheaper than comprehensive policies but typically won’t cover outpatient consultations or diagnostic tests.

Many insurers let you tailor cover further. For example, you can limit the list of hospitals you use, add or remove cancer cover, or choose a higher excess to lower your premium.

• Find out more: is private health insurance worth it? 

5 ways to buy cheap private health insurance

If you decide to take out private medical insurance (PMI), there are ways to keep costs down without leaving yourself underprotected. Here are some practical tips:

1. Be realistic about your cover needs: PMI policies vary widely, from basic in-patient cover to comprehensive plans that include out-patient tests, therapies and access to every private hospital. Cutting back on options you don't need, such as full out-patient cover or an extensive hospital list, can reduce your premium by hundreds of pounds a year. Just make sure the cover you keep reflects what matters most to you.
2. Add an excess or co-payment: agreeing to share some of the costs if you make a claim lowers what you pay upfront. An excess means you pay a set amount, while a co-payment is a percentage of the bill, usually with an upper limit. This can make your policy cheaper, but you need to be confident you could afford the amount if you required treatment.
3. Use rewards and perks: Many insurers encourage healthy living by offering discounts or rewards. Some give money off your renewal if you stay active, while others provide perks like discounted gym memberships, free dental check-ups or cinema tickets. These benefits may not reduce your premium directly, but they can save you money in other areas of your life.
4. Look for sign-up offers: some insurers and comparison sites advertise cashback or vouchers when you take out a policy. These are a nice bonus, but they should not distract you from checking whether the policy itself offers the right protection. A voucher will not make up for poor or missing cover.
5. Get advice before switching providers: unlike car or home insurance, moving to a cheaper PMI provider is not always straightforward. If pre-existing conditions are covered under your current policy, a new insurer may exclude them. A broker can help you compare the details and make sure you do not swap lower premiums for reduced protection.

• Find out more: How to claim on your private health insurance