Five tips for buying the perfect PMI policy

If you're looking for private medical insurance and want to buy a policy, here are five top tips to help keep costs down.

For many people, the peace of mind they get from having a private medical insurance policy in place is a luxury well worth paying for.

If you hold a private medical insurance (PMI) policy, you will have access to private medical treatment should you fall ill or have an accident.

This means you may be able to queue-jump long NHS waiting lists, have a say in where you are treated - and, in some cases, even enjoy tastier hospital food! (You can find out more about the perks and pitfalls of PMI by reading this article.)

However, with the recession still biting, it's important you protect your pocket and hunt down an affordable policy before taking out PMI.

Here are my five top tips for finding the perfect PMI deal.

1. Check your employee benefits

These days, more and more employers are starting to take some responsibility for their workers' health and wellbeing. Many companies now offer gym memberships and PMI as work perks.

According to research by Bupa, after pensions, PMI is the second most desirable employee benefit.

Therefore, before you shell out for an individual PMI policy, find out from your employer if you can be covered as part of a company scheme.

Some employers may even pay for PMI for your whole family. So, if your own workplace doesn't offer PMI as a benefit, it's a good idea to see if you can be included under your partner's company policy.

2. Reduce the risk

As with any insurance policy, the price of your PMI premium will be based largely on risk assessment.

This means that the more likely your insurer thinks it is you will make a claim, the more expensive your policy will be.

Therefore, in order to reduce the price of your premium, you need to reduce the risk you pose.

For example, quitting smoking or losing a few pounds if you're overweight could have a significant impact on how much you pay.

3. Limit your cover

You may find that if you place cash and time limits on the treatment you're entitled to under your PMI policy, your insurer will lower the price of your premium.

For example, many insurers offer different policies based on pre-determined 'bands' or the 'grade' of the hospitals policyholders are eligible to be treated in. If you agree to limit yourself to lower-grade hospital accommodation, the price of your premium is likely to be lower.

Furthermore, if you give up your right to choose where you are treated and who by, you may pay even less for PMI.

You can also put a cap on your cover by agreeing to either pay for certain types of treatment yourself, or use the NHS in conjunction with receiving private medical care.

4. Shop around

Before you buy any insurance policy, it's crucial that you shop around and compare a range of quotes.

Even if you are offered PMI through an insurance company you already hold policies with, be aware that it's important to check whether you could get a more competitive policy elsewhere.

One of the fastest and easiest ways to compare different deals is to use an online price comparison service, such as BeatThatQuote.com's health and private medical insurance centre.

5. Choose your cover carefully

As you shop around for the best deal, remember to compare like for like and ensure you purchase the right level of cover for you. Finding the right PMI policy is not only a question of hunting down the cheapest option - it is about ensuring you get the protection you need at an affordable price.

The benefits of PMI are not unlimited and vary from policy to policy. For example, many insurers will refuse to cover emergency treatment, incurable diseases and few will cover pre-existing medical conditions.

Therefore, it's important to check the terms and conditions of your PMI policy carefully before signing on the dotted line. You don't want to wait until you fall ill or have an accident to find you are not covered for certain treatments.

Finally, when fill in the application form for your PMI policy, it's vital you are completely honest about your medical history.

If you omit information, whether or not this is intentional, you could find your entire policy is deemed invalid when you come to claim.

**Articles featured on BeatThatQuote.com are for information purposes only and reflect the views of individual writers. Articles are not, and should not be considered as, financial advice. BeatThatQuote.com strongly encourages our readers not to rely solely on information contained within this article/our website, but to conduct their own research and seek independent advice about the financial products they purchase.**