Published: 26/05/2009

The sale of private medical insurance (PMI) has increased steadily over the last couple of years and shows no sign of abating. In fact the latest figures from the Association of British Insurers show that the number of people with PMI now stands at some 7.3 million, a figure that continues to rise despite the recession.

With a number of high profile outbreaks of MRSA occurring during the last few years, it is no real surprise to see increased demand for PMI as more consumers seek clean hospitals, shorter waiting times and speedy access to medical specialists.

Whist such a policy does not guarantee that you will be covered for everything that goes wrong, our wellbeing is certainly becoming more important to us, and the continued media reporting of healthcare scandals will only reinforce this mindset further.

So, is PMI right for you? Before making a decision to spend some of your hard earned cash on a monthly insurance premium, there are a few things you should consider:

If you decide that PMI is for you, don't rush in and buy the first policy you are offered, it is a complex product and as such you should seek the help of an independent financial adviser.

It is important that you understand from the outset what is and what isn't covered by your insurance, for example, many policies will exclude HIV/Aids, infertility treatment, psychiatric care and arthritis. 

However it’s important to establish whether the insurer you choose offers fully underwritten PMI, and as such doesn't include cover for any pre existing conditions, or whether they have a moratorium, which means they won’t cover you for any pre existing conditions during the first two or three years of you taking out your new policy with them.

Some insurers will be prepared to offer policies with a moratorium in place, whereas others may insist that you undertake a full medical examination before they decide to accept you as a customer and on what terms this will be.

If you have a current PMI Plan but wish to change to another insurer it is possible to ensure that you receive a plan on "no worse terms", and an independent financial adviser specialising in this area should be able to help.

This means that the underwriting company of the new PMI plan will offer you cover on the same terms as the previous plan. If you have had claims and particularly exclusions from cover, these too will be carried forward or considered by the new insurer.

Another potential problem area is that of "non-disclosure". Basically this means that a claim will be invalidated if you do not let the insurer know about any condition that you have suffered in the past five years, even if this is not the same illness for which you subsequently make a claim.

So whilst PMI will make life easier in that you will be able to get appointments and treatment when you need them, it is essential that you read and understand the small print before putting pen to paper, as you don't want to find that your claim is invalid or treatment unavailable when you come to rely on your PMI policy.

It is worth remembering that there are ways you can reduce your premium, for example, by limiting the payout for certain operations or agreeing to pay an increased excess on any claim.

Once you've done your research and decided what you want from your private medical insurance, take the time to get quotes from two or three providers and select the one that suits your requirements and your budget.

Click here for a free no obligation PMI quote