WPA Active Health
WPA has introduced a new range of individual PMI plans. The first two are:
• Flexible Health. Available in Essentials, Premier and Elite forms, the plan in its Premier guise covers in-patient and limited out-patient cover with a choice of four co-payment levels and optional cancer, advanced cancer drugs and dental cover plus optional premium hospitals, higher out-patient limits and emergency cover abroad.
• XS Health. Aimed at non-smokers aged 25 and below. Has a £1,500 annual excess but costs just £59.70 a year, making it an ideal buy for parents for their adult children (who may not be covered by the family’s PMI).
However, we are reviewing the third plan—Active Health. This is targeted at those aged 55 and over and pays up to £150,000 benefit a year. As such it will often appeal to people coming out of a group PMI scheme. Often, such people are hit with such a big premium increase that they decide not to switch to individual cover at all and instead go without PMI altogether.
This plan offers a choice of two very high rolling annual excesses of £3,000 or £5,000. That results in premiums up to 80% less than for traditional full cover plans WPA says. The excess covers all claims within a 12 month period starting once costs exceed the excess limit. The excess then covers all claims for the next 12 month period.
Someone aged 60 would pay £50.32 with a £3,000 excess and just £25.38 a month with a £5,000 excess.
The plan includes most usual PMI benefits, including full out-patient cover (although most out-patient cover is likely to be within the annual excess in many cases), cancer care, nursing at home and a hospice donation per night of £70 (max ten nights). NHS hospital cash benefit is £100 a night up to 30 nights a year.
Plus points: Very low cost compared to conventional PMI; Does not includes some benefits likely only to appeal to younger people, which would normally have to be paid for; WPA is offering a 15% discount on premiums in the first year, as part of its 25 years of putting customers first celebrations.
Not so plus points: Very high annual excesses; Whilst that might be acceptable to many people with savings, the risk is that if they need treatment every year, the cost can significantly escalate over time; Smokers pay 10% extra.
Website: http://www.wpa.org.uk.
Rating (max 10): Innovation: 8. Overall: 8. Gold.