Why Two People With the Same Health Pay Different Private Medical Insurance Premiums
- Assure-U Team
- 4 hours ago
- 3 min read
It’s one of the most common questions people ask when exploring private medical insurance (PMI):“Why does my friend pay less than me when we’re the same age and both healthy?”
On the surface, it feels unfair. But in reality, private medical insurance premiums are influenced by far more than just your current state of health. Understanding these factors can help you make smarter choices—and avoid paying more than you need to.
Health Is Only One Piece of the Puzzle
While insurers do consider your medical history, it’s rarely the deciding factor on its own. Two people can be the same age, live similar lifestyles, and have no pre-existing conditions, yet still receive very different quotes.
That’s because insurers price risk in layers—and many of those layers are invisible to consumers buying cover on their own.
1. Where You Live Matters More Than You Think
Healthcare costs vary significantly across the UK. Insurers factor in local treatment costs, consultant fees, and hospital charges.
For example, someone living in London or the South East will almost always pay more than someone in the North of England, even with identical cover. This isn’t about health—it’s about regional medical pricing.
A broker can assess whether a national hospital list or a more targeted regional option would still meet your needs while reducing your premium.
2. The Insurer You Choose Can Change the Price Dramatically
Each insurer assesses risk differently. Some are more competitive for younger individuals, others for families, professionals, or people looking for comprehensive outpatient cover.
Buying directly often means you only see one insurer’s pricing. A broker compares the entire market to find the insurer whose pricing model best fits you—not a generic profile.
This is one of the biggest reasons two healthy people end up paying very different premiums.
3. Policy Structure Has a Bigger Impact Than People Realise
Two policies may sound similar but be structured very differently. Key variables include:
Excess level – A higher excess can significantly reduce premiums
Outpatient limits – Often one of the most expensive parts of a policy
Hospital list – Broad vs limited access
Cancer cover options – Full vs guided pathways
Mental health cover – Included or restricted
Without guidance, many people unknowingly select features they’re unlikely to use—then wonder why their premium is high.
4. Underwriting Method Makes a Difference
There are two main underwriting styles:
Full Medical Underwriting (FMU) – Excludes known conditions upfront
Moratorium – Covers conditions after a symptom-free period
Even if two people are healthy, choosing different underwriting methods can lead to different prices. The “cheapest” option at the start isn’t always the best long-term choice—something a broker will explain clearly before you commit.
5. Payment Frequency and Indexation Choices
Monthly payments usually cost more overall than annual ones due to financing charges. Likewise, automatic benefit escalation can quietly increase premiums year after year if it’s not reviewed.
These details are often buried in policy documents but can make a noticeable difference over time.
6. Buying Online vs Using a Broker
Comparison sites and direct insurers don’t tailor advice—they sell standardised products.
At Assure-u, we take the time to understand:
How you actually use healthcare
What level of access matters to you
Where flexibility can reduce costs
Which insurers suit your profile best
Importantly, we don’t charge admin fees, and our commission is paid by the insurer—not added to your premium. In many cases, clients pay less than if they’d gone direct.
The Bottom Line
Two people with the same health can pay different premiums because private medical insurance isn’t just about health—it’s about structure, location, insurer pricing models, and expert policy design.
The right advice can mean the difference between overpaying for years or having cover that genuinely works for you at the best possible price.
Speak to a Private Medical Insurance Broker
If you’d like a clear, no-pressure comparison of the UK’s leading insurers—and reassurance that you’re not paying more than you should—Assure-u is here to help.
📞 03300 100 441
We’ll explain your options in plain English and make sure your policy fits you, not the other way around.
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