PRINT PAGE

Britons 'overlooking value of PMI'

11 November 2008 Breaking News

More than four out of five people would borrow money or dip into their life savings to fund one-off private medical treatment instead of opting for what can often be a more economical insurance policy, research suggests.

BCWA, the private medical insurance (PMI) provider based in Bristol, said it has carried out research which shows that the insurance industry as a whole is failing to provide people with clear information about the financial benefits of PMI.

According to the research, 83% of people would opt to self-fund treatment on a "pay as you go" basis, as opposed to investing in a more economical insurance policy. Almost half of people in Britain (44%) would be prepared to pay for one-off private treatment using their savings, while more than one in five (21%) would approach friends and family for financial support. A similar number (18%) said they would even borrow money from a bank or building society to fund private treatment.

BCWA's research compared the cost of typical one-off medical procedures when carried out on a private basis with that of the annual premium of an individual PMI policy. The majority of people said they would be prepared to pay in excess of £8,000 and £9,500 for hip and knee replacements respectively despite the average annual cost of a PMI policy in the UK - under which such treatment is covered - being just £836.

More than one in five (22%) people in Britain said they would use their savings or borrow money to pay for private treatment overseas. However, BCWA said that many people overlooked the additional costs such as air fares, hotels and food and drink. According to BCWA, this oversight means that thousands of people in the UK face being "stung" for treatment that can end up costing them more than 10 times that of a PMI policy.

If you would like to share your thoughts on this story or any other issue email news@hi-mag.com.