Private Medical Insurance Calculator UK 2026

PMI premiums vary widely by age, cover level, and excess. As a rough guide for 2025/26: a 30-year-old individual on standard cover might pay £50-£80/month; a 50-year-old might pay £150-£200/month; comprehensive family cover for a couple in their 40s can range from £300-£600/month. Premiums increase with age, typically by 5-10% per year.

Yes — employer-provided private medical insurance is a P11D benefit in kind. The employee pays income tax on the annual premium value (including Insurance Premium Tax), and the employer pays Class 1A NI (13.8%) on the same amount. For example, a £2,000/year policy makes the employee pay £800 in extra tax (at 40%) and the employer £276 in NI.

Yes — private medical insurance premiums are subject to Insurance Premium Tax (IPT) at the standard rate of 12% (from June 2017). Life insurance, income protection, and critical illness policies are taxed at the higher rate of 20%. IPT is included in the premium price quoted — you cannot reclaim it, unlike VAT.

PMI covers the cost of private hospital treatment, specialist consultations, and surgery. A health cash plan pays a fixed cash benefit for routine treatments (dental, optical, physio, prescriptions) — but does not cover inpatient hospital costs. Cash plans cost much less (£10-£30/month) and complement PMI by covering everyday healthcare costs not included in most PMI policies.

Annual check-ups and health screenings (up to one per year) provided by an employer are tax-free under current HMRC rules. However, ongoing private medical insurance paid by the employer is a taxable benefit. The only way to obtain completely tax-free private medical care as an employee is to be treated under the NHS or as an emergency — routine PMI premiums cannot be made tax-exempt.