Chris Steele
Published on
January 4, 2020
Last updated
February 9, 2020

What is the average cost of family health insurance?

We’re often asked what the average cost of family health insurance is in the UK and, while our private medical insurance experts can always make a rough estimation, quotes are only ever based on recent experience. This article aims to go further than we have in the past and we’ve tried to establish a true average price for families of varying sizes. 

What affects the cost of family health insurance?

Before we look at the actual costs of family health insurance and the process we’ve gone through to get them, we've listed below some of the factors which will affect the cost of a policy. Doing this firstly helps to inform you of all the potential variables and secondly will allow us to focus on a few, which we will alter to obtain a fair average...

  • The number of people on the policy
  • The age of the family members
  • The family's location in the UK
  • The medical history of the family
  • Whether the parents are smokers
  • The cost of private medical treatments
  • The chosen hospital list
  • The excess on the policy (£0-£750)
  • How the policy is underwritten (moratorium or full medical underwriting)
  • Level of cover chosen (inpatient, some outpatient, full outpatient)
  • Any optional extras

Average cost of private health insurance

To provide realistic averages we’re going to do several things. Firstly, we’ll break things down by family size - families of 3, 4 and 5 to be precise. For each of these, we’ll provide an average price. 

Finding the average cost of family health insurance

Next, we need to set some rules for the experiment. There are a number of user-controlled variables, such as, the level of cover and the policy excess, alongside fixed variables such as location and age. To get a fair average, we will get quotes for ten different families, located in various places across the UK. We’ll assume that half are smokers and half are not, but importantly we will underwrite them all on a moratorium basis which is the method used the majority of the time in the UK. By underwriting the policies on a moratorium basis, the insurers effectively exclude any pre-existing conditions, so we don’t need to get into how various illnesses affect the health insurance comparison quotes. 

The rules of the pricing experiment:

  • The quotes obtained will be for the same family in the following locations: Southampton, London, Cambridge, Birmingham, Manchester, Liverpool, Newcastle, Glasgow, Cardiff, Edinburgh, Belfast, Hull, Wrexham
  • Half of the time, one of the parents will be a smoker
  • The policies will be underwritten on a moratorium basis
  • The excess on the policy will be set at a £200 per annum
  • We will provide pricing for both basic and comprehensive cover
  • No additional options will be added
  • We will always choose the cheapest provider in any given comparison
  • The quotes were produced on the 17th January 2020
  • The parents are in their 40s with children younger than 15

Average cost of health insurance for a family of 3

The results of our quotes were as follows:

The average annual cost of a basic health insurance policy for a family of 3 is £601.52 pa*

The average annual cost of a comprehensive health insurance policy for a family of 3 is £1207.65 pa*

*While every care has been taken to make this a fair experiment, the prices provided are purely a guide. If you would like accurate pricing for your family, please request a quote.

Average cost of health insurance for a family of 4

The results of our quotes were as follows:

The average annual cost of a basic health insurance policy for a family of 4 is £705.42 pa*

The average annual cost of a comprehensive health insurance policy for a family of 4 is £1,358.98 pa*

*While every care has been taken to make this a fair experiment, the prices provided are purely a guide. If you would like accurate pricing for your family, please request a quote.

Average cost of health insurance for a family of 5

The results of our quotes were as follows:

The average annual cost of a basic health insurance policy for a family of 5 is £907.52 pa*

The average annual cost of a comprehensive health insurance policy for a family of 5 is £1,785.96 pa*

*While every care has been taken to make this a fair experiment, the prices provided are purely a guide. If you would like accurate pricing for your family, please request a quote.

Conclusion

While this isn’t a scientific experiment, we hope that it has gone some way to answering some of the questions you have. For more information about family health insurance or if you’d like some accurate pricing for your family .please visit our dedicated page or click the “get quote” button.

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(We donate £1 with every valid quote)

(We donate £1 to Cancer Research UK with every valid quote)
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