Private Medical Insurance (PMI) covers medical treatment, which is done privately rather than through the NHS. It offers customers choice, comfort and convenience when you need medical treatment, but it may not provide cover for all health conditions.

You could simply pay to go private as the need arises and some hospitals now offer special deals spread over several years. But the cost of private treatment is unpredictable and very high.

If you run your own business and you would lose money waiting for NHS treatments then it is a necessity. As the 60% of the UK population that have cover through their job as a standard perk are in company schemes can attest, it's a good benefit to have- especially as being in a group scheme some existing ailments might be covered.

PMI cover is often limited to "acute" conditions- long term chronic conditions are not normally covered. For example, if you were an asthmatic then the inhalers would not be covered but if you had an attack then you might be covered. Normally, alcohol related problems and pregnancy and the like are excluded.

You will have to declare your medical history before taking out a policy. If you have any health problems then they might be excluded for up to two years or a "loading" added to your quote.

The premiums are normally reviewed annually. The two key factors affecting the cost of premiums are your age and the level of cover that you choose. Some providers offer a lower premium in return for a voluntary excess- where you pay the first part of the claim. Check that the level of cover you choose matches your requirements. Apply now!