BUPA is offering fixed price private medical insurance (PMI) to individual customers. The plan enables customers to take out cover for a five or 10-year term without the worry of rocketing premiums.
Customers pay fixed monthly premiums or can make a lump sum payment. There is no lock-in and should customers who paid a lump sum want to exit the scheme they will receive a pro rata refund.
To purchase fixed price cover with a £100 excess for five years a 30-year-old would pay £50.66 a month, or a lump sum of £2,530. This would rise to £62.27 a month or £5,827 one off payment for 10 years’ cover. But PMI broker, Stephen Walker, principal at Medical Insurance services warned that customers may not necessarily be getting best value.
He said: “This is a step in the right direction but BUPA is approaching the issue of premium caps cautiously as the capped term is limited. It does not resolve the problem of affordable premiums later in life when the benefit is most needed.”