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