What is private health insurance?

Private health insurance is a policy that covers the cost of private medical treatment for acute conditions. It gives you faster access to specialists, diagnostic tests, and surgery without relying on NHS waiting lists.

How much does private health insurance cost in the UK?

Premiums typically range from £50 to £150 per month for an individual, depending on your age, medical history, level of cover, and chosen excess. Family policies cost more but often offer better value than insuring each person separately.

Does private health insurance cover pre-existing conditions?

Most standard policies do not cover pre-existing conditions. Some providers offer moratorium-based underwriting where pre-existing conditions may become covered after a period without symptoms or treatment, typically two years.

Can I use private health insurance alongside the NHS?

Yes. Many policyholders use the NHS for routine care and their private cover for specialist referrals, elective surgery, or when NHS waiting times are long. Some policies include a six-week NHS wait option to reduce premiums.

What is the difference between an excess and a co-payment?

An excess is a fixed amount you pay towards each claim or policy year before your insurer pays. A co-payment means you pay a percentage of every claim. Both reduce your premium but increase your out-of-pocket costs when you claim.

How do I compare private health insurance plans effectively?

Compare policies based on the level of cover, the hospital and consultant network, exclusions, excess amounts, and annual claim limits. Getting quotes from multiple providers ensures you find the best value for your needs.

Can self-employed people claim health insurance as a business expense?

Sole traders cannot deduct personal health insurance as a business expense. Limited company directors can pay through the company (deductible against corporation tax), but pay personal income tax on the benefit value via P11D. Despite the P11D charge, the company route is usually more tax-efficient.

Which provider is best for self-employed people?

The Exeter is the top choice for self-employed people. They offer no GP referral required (saving valuable time), the highest customer satisfaction of any UK insurer, and flexibility with pre-existing conditions. AXA Health is the best budget alternative with 24/7 GP access.

Private Health Insurance for Self-Employed UK

Why the Self-Employed Need Private Health Insurance

When you are self-employed, being unable to work means losing income immediately. There is no sick pay, no employer to cover your responsibilities, and no guaranteed income while you recover. NHS waiting times of 14–18 weeks for a first specialist appointment — followed by further waits for treatment — can mean months of reduced earning capacity.

Private health insurance gets you seen by a specialist within days and treated within weeks. For many freelancers and business owners, the premium pays for itself many times over in avoided lost income.

The Tax Position

This is the question every self-employed person asks first:

Sole Traders

Private health insurance for yourself is not a tax-deductible business expense if you are a sole trader. HMRC treats it as a personal expense, so you pay from post-tax income. This is the same position as an employed person buying individually.

Limited Company Directors

If you operate through a limited company, you have more options:

The company can pay for your health insurance as a business expense, and the cost is deductible against corporation tax.
However, you will pay personal income tax on the benefit value (P11D), and the company pays Class 1A National Insurance on it.
Despite the P11D charge, paying through the company is usually more tax-efficient than paying personally, because you save corporation tax (25%) on the premium cost.

Example: A £960/year premium paid through the company saves £240 in corporation tax. You pay income tax on £960 at your marginal rate (£192 at basic rate, £384 at higher rate). Net saving through the company: £48–£240 depending on your tax band.

Best Providers for the Self-Employed

The Exeter — Top Choice

The Exeter has designed plans specifically with self-employed people in mind. No GP referral is needed to see a specialist (saving days of waiting), their claims team is the highest-rated in the UK (4.5/5 Trustpilot), and they are more flexible with pre-existing conditions than most providers. From £42/month.

AXA Health — Best Value

AXA offers competitive pricing and immediate 24/7 GP access — valuable when you cannot afford to wait for an NHS GP appointment. The Personal Health fund adds wellbeing value beyond medical cover. From £40/month.

Vitality — Best for Active Freelancers

If you are health-conscious, Vitality's rewards programme provides gym discounts, wellness perks, and the Apple Watch offer. Active engagement can effectively reduce your net premium cost. From £50/month.

What Self-Employed People Should Prioritise

Fast specialist access — the main reason to have cover. Choose a provider with direct access (no GP referral) or 24/7 GP service for fast referrals.
Outpatient cover — consultations and diagnostics are where most self-employed claims start. An inpatient-only policy misses the most common use case.
Mental health cover — self-employment can be stressful. Access to private counselling and therapy without long NHS waits is valuable.
Reasonable excess — a £250 excess saves money on premiums without creating a barrier to claiming when you need to get back to work quickly.

Income Protection vs Health Insurance

Private health insurance and income protection solve different problems:

Health insurance pays for private medical treatment so you can get diagnosed and treated faster.
Income protection replaces a portion of your income (typically 50–70%) if you are unable to work due to illness or injury.

Ideally, self-employed people should have both. If you can only afford one, health insurance provides faster treatment which gets you back to work sooner, while income protection provides a financial safety net during extended absences. Many financial advisers recommend health insurance as the first priority because it addresses the root cause (getting better faster) rather than just the symptom (lost income).

Private Health Insurance for the Self-Employed