Private medical insurance in the UK splits broadly into two markets: cover provided by an employer as part of a workplace benefits package, and individual policies people buy for themselves and their families. Roughly three-quarters of UK PMI is corporate, employer-funded cover, with individual policies representing the faster-growing but smaller share of the market.
How employer schemes typically work
Employer group schemes are usually underwritten differently to individual policies. Many use 'medical history disregarded' underwriting for scheme members, meaning pre-existing conditions can be covered from day one without the moratorium or full-disclosure process an individual applicant would go through. This is one of the most valuable, and least understood, features of workplace health cover.
The trade-off is control: you generally can't choose your own cover level, insurer or key policy terms — your employer negotiates those for the whole scheme. Cover often ends the day your employment does, and dependants may or may not be included depending on how generous the scheme is.
How individual policies differ
An individual policy is one you choose, apply for and pay for yourself (or as a family). You pick your own insurer, cover level and underwriting route — see our guide to moratorium vs full medical underwriting — and it stays with you regardless of who you work for or whether you're self-employed. This flexibility is a major reason individual PMI has been the fastest-growing segment of the market, particularly among the self-employed, contractors and those without access to a workplace scheme.
Note: Industry estimates put UK PMI coverage at roughly 7.5 million people, with the market split roughly 75% corporate/employer-funded to 25% individual — though the individual segment has been the faster-growing of the two in recent years, driven in large part by NHS waiting times.
What to check if you're relying on an employer scheme
- Whether cover extends to your partner or children, and at what cost if it's optional.
- What happens to your cover, and any 'continuous cover' credit for pre-existing conditions, if you change jobs.
- Whether the scheme is a taxable benefit-in-kind, and how that affects your payslip.
- Whether you can 'buy up' to a higher cover level within the employer's scheme.
No employer scheme? Compare your own — See what individual health insurance costs for your circumstances — free, no-obligation comparison.
Frequently asked questions
What happens to my health insurance if I leave my job?
Employer-provided cover almost always ends when your employment does, though some schemes offer a 'leaver' option to continue on an individual policy, sometimes without needing fresh underwriting for conditions already covered. Ask your HR team or the insurer directly before you leave.
Is employer health insurance a taxable benefit?
Generally yes — private medical insurance provided by an employer is usually treated as a taxable benefit-in-kind in the UK, reported via a P11D, meaning you pay income tax on its value. Your employer or payroll team can confirm exactly how it applies to you.
Can I top up my employer's cover with my own policy?
It's possible in principle, though not common — most people either rely solely on an employer scheme or, if they want broader cover, discuss upgrading their level within the employer scheme itself where the option exists. Speak to your employer's scheme provider about what's available.
Related reading
- Moratorium vs Full Medical Underwriting: How Health Insurance Actually Works
- UK Private Healthcare in Numbers: The 2026 Market Snapshot