The new plan, Health Essentials for Me, includes cover for in-patient and day-patient surgery and treatment, but no cover for diagnosis and consultations.
Customers can choose whether they would like to include unlimited cover for cancer and whether to add a voluntary excess to the compulsory excess of £100.
Exeter said the plan would appeal to three target markets – first-time PMI buyers, existing PMI policyholders who want to control costs after renewal increases and affluent policyholders who want to cover “big ticket” treatments.
The insurer also admitted in the past advisers saw its existing comprehensive PMI policies as “expensive” but this new plan would address those issues.
Simon Philp, distribution and marketing director at Exeter, said: “PMI advisers know what we have brought to the market until now, our products are comprehensive, easy to explain and offer both value and reassurance. But for some consumers, the most important factor is price – yes they would like comprehensive cover, but they have to compromise to stay within budget.”
He added: “For many people, the main driver for choosing to buy PMI is the fear of having to wait for an operation or procedure on the NHS. Health Essentials for Me will give these customers access to speedy and quality private treatment, without the price tag of a comprehensive policy.”