From This is Money:
Customers are exchanging policies in their droves as soaring medical inflation pushes premiums up by as much as 10%.
Steve Walker, director of broker Medical Insurance Services, says: ‘Most people don’t want to get rid of private healthcare altogether, but they can’t afford the huge premium hikes.’
Standard Life is launching a lowercost, menu-driven Personal Healthcare plan in July.
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Tesco also has a new menu-based plan. These plans cover core treatments and allow customers to add the extras they want (such as outpatient treatment) and the cost depends on this.
But there are other ways of avoiding the increases. National Deposit Friendly Society’s Healthcare Deposit Account says it will allow customers to fix their premiums for life.
It aims to do this by having a mix- and-match of savings account and insurance.
Half the monthly premium goes into a savings account with the society which pays no interest, but is used as the pot to help f…