Partner Insight: Is PMI really just a 'luxury' item?

Nowadays it has a much broader appeal

Gareth Jones
clock • 3 min read
PMI: A luxury item?
Image:

PMI: A luxury item?

Modern budget formats are making PMI more affordable and businesses are increasingly offering it to younger employees, says WPA

PMI is sometimes seen as a luxury item for wealthy older people, extending choice beyond the NHS and providing patients with more control of their care, waiting times and privacy. However, this myth has become decidedly dated, as the NHS has come under increasing strain and insurers have developed more innovative and affordable solutions for customers.

Headline average PMI premiums are certainly not insignificant - the LaingBuisson Health Cover Market Report 2020 put them in the region of £2,011 a year. But, in fact, many modern budget formats allow customers to pay much less through innovations such as Shared Responsibility. 

Annual premiums could be anywhere between £350 and £1,500 depending upon type of cover you're after - a basic or comprehensive plan, your age, where you live and what hospitals you'd like to use.  

The ability of PMI, aided by new technology, to now go well beyond taking care of people when they are sick and to allow them to better control long-term health and to have access to services for minor illnesses, mental wellbeing and other benefits has also greatly broadened its appeal. Additionally, the fact that nowadays you may not even need to speak to someone to start a claim has certainly cut through barriers.

Liam McClelland, business development manager, mid and large corporates at WPA, says: "WPA is engaging with customers via their phones in their pockets. Even young individuals who are fit and healthy, in their prime and overly optimistic about their health, are realising that health cover is a worthwhile investment."

The workplace boom 

A trend for employers to offer PMI to their workforces has also significantly boosted the numbers of younger people with cover, regardless of income. 

Companies of all sizes are increasingly appreciating that its ability to slash absenteeism and presenteeism costs means it has major benefits for the employer as well as the employee. 

PMI enables employees to choose to have consultations and operations at times that fit in with their own and their colleagues' workloads and offers them access to a range of wellness benefits that can boost productivity by helping them stay fit and healthy over the longer term.  

Edward Watling, senior employee benefits consultant at Mattioli Woods, says "PMI has rarely been something an individual under the age of 25 or so would have invested in themselves but, from an employer's perspective, it is beneficial to offer it to all employees, regardless of age, sex, and wealth."

Tailored future

In particular, businesses are looking at how services can be tailored to different employees and the challenges they may face at different life stages. 

McClelland says: "There's a definite need to provide support based on where you are in your life and the path you're on. In fact, younger generations may need more support in their 20s. 

"The younger generations appear to be more mindful of their wider health and wellbeing than perhaps the generations before them, meaning a benefit solution should be adapted to support the specific needs of each employer's workforce."

This myth-busting article is one of a series of 10 addressing common myths around PMI. Access the full list

This article was funded by WPA

More on Long Term Care

Government narrowly wins vote on social care reform amendment

Government narrowly wins vote on social care reform amendment

Vote in House of Commons passes 272-246

John Brazier
clock 23 November 2021 • 2 min read
Social care living costs will not count towards cap total government reveals

Social care living costs will not count towards cap total government reveals

“A real blow for people with less income and savings”

John Brazier
clock 18 November 2021 • 2 min read
Tony Müdd: Lies, Damn Lies & The Cap

Tony Müdd: Lies, Damn Lies & The Cap

'The idea that people will no longer face unpredictable or unlimited care costs as a result is patently not true'

Tony Müdd
clock 26 October 2021 • 5 min read

Highlights

COVER Excellence Awards 2021: All the winners revealed!

COVER Excellence Awards 2021: All the winners revealed!

Leading With Distinction

COVER
clock 03 November 2021 • 2 min read
COVER Excellence Awards 2021: The Night in Pictures

COVER Excellence Awards 2021: The Night in Pictures

A photo gallery from COVER Excellence Awards 2021, held at The Brewery, London, on 2 November.

COVER
clock 03 November 2021 • 1 min read
Gosia Bowling: The role of behavioural science in creating a menopause-friendly workplace

Gosia Bowling: The role of behavioural science in creating a menopause-friendly workplace

'The key to supporting menopausal women is creating a culture in which conversations are welcomed and expected'

Gosia Bowling
clock 02 November 2021 • 6 min read