At 58, David is near to a major age band change with some insurers so future cost is as relevan...
At 58, David is near to a major age band change with some insurers so future cost is as relevant, if not more so, than cost at outset.
His previous hernia and current arthritis will not prevent him being accepted for PMI, but we recommend that these be properly considered by way of full underwriting rather than selecting a moratorium.
The wrist arthritis is likely to be regarded as a long-term chronic condition, so he would not be able to claim for such things as physiotherapy. It would not, however, prevent claims in the future if problems develop elsewhere needing surgery, for example a hip replacement.
The lowest cost is Standard Life Primecare at £89.69, but this includes an introductory 25% NCD and the cost at age 60 rises by 40% so making it less competitive in the longer term.
Most attractive is Exeter Friendly Society Preferred Plan ' £90.96 per month, with a good level of benefits in important areas. The greatest weakness is that psychiatric care is not included but this is compensated by unique age at entry pricing where future costs will continue to be based on age 58 and so avoid age band increases. Costs can be reduced by 5% by paying annually by DDM.
Two other good value plans which provide nearly comprehensive benefits are AXA PPP healthcare Ideal Plan at £82.61 per month and Health On Line's Personal Choice (including options 2 and 5) at £78.67 per month including a non-smoker discount.
Pricing for both is on an age-attained basis with age band increases every year which smooths out sudden step-ups. Although cheaper initially than Exeter, we would expect the advantage to disappear in two to three years.
