What is a health insurance premium?

Your health insurance premium is the amount you pay, usually monthly or annually, to keep your policy active. In return, your insurer agrees to cover some or all of the cost of private medical treatment, depending on your level of cover.

Premiums can vary significantly from person to person, which is why understanding what affects the price can help you find cover that fits both your needs and your budget.

While cost is an important factor, it is equally important to understand what your premium provides.

Most policies will typically include access to specialist consultations, diagnostic tests such as scans, private hospital treatment including surgery, and cancer care. Many also include some level of mental health support, although the extent of this can vary.

For example, one leading insurer includes the following as part of its cover:

• Outpatient appointments before treatment.

• Hospital treatment.

• Cancer cover.

• Remote GP access.

• Mental health cover.

• Private ambulance.

• NHS cash benefit.

• Tests before and after treatment.

• Scans before and after treatment (MRI, CT, PET).

• Treatment at home, such as chemotherapy.

• Outpatient therapies.

• Home nursing.

At the same time, there are common exclusions to be aware of. These often include conditions or injuries you had before your policy started. Chronic conditions where ongoing treatment is needed are also often excluded, although cancer cover is often included as standard.

Other typical exclusions can include issues linked to ageing, menopause or puberty, along with allergies and food intolerances.

What is included and excluded can vary between policies, so it’s always worth checking the details before choosing your cover.