Estimate private medical insurance premiums for individuals and families in the UK. Find monthly and annual PMI costs and tax considerations for employers.
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.