Brian Walters, principal of Regency Health, says: “It is sometimes the case that dramatic savings can be achieved, especially where a client has remained on the same policy for many years without reviewing it.
“However, great care needs to be taken when changing insurers. We've seen situations where consumers have unwittingly lost cover for pre-existing conditions in exchange for a lower premium, or been moved onto an inferior policy for only a modest saving.”
In addition, most PMI policies offer tiered levels of cover so premiums can be reduced by increasing the excess payable by clients, limiting out-patient cover or downgrading the hospital coverage offered by the insurer.
We can also look at health products that have swallowed the cost of the recent IPT increases
Last November, insurance premium tax, or IPT, increased from 9.5 per cent to 10 per cent and it is due to go up by a further 2 per cent this June.
With the Consumer Prices Index currently running at 1.6 per cent for the year to the end of December, this is an inflation-busting increase that will see a windfall for the treasury at the expense of anyone with car, home, breakdown, pet and, crucially, health insurance.
When the latest increase comes into effect, IPT will have doubled in just under 18 months, and clients with health insurance will be seeing increases in the premiums as their plans hit their annual renewal dates.
However, some insurers, such as Health Shield, have offered to take on the cost of the IPT increase, rather than pass it on to clients.
5) Stay up to date with new products
Traditionally the protection market has not always been the most dynamic or innovative when it comes to product development, but this has changed in recent years with the introduction of reward programs, discounts and bonuses linked to clients adopting a healthier lifestyle.
VitalityLife has been at the forefront of product innovation and their latest development offers further benefits for clients who take steps to improve their health.
Last month, FT Adviser reported the launch of the Wellness Optimiser from VitalityLife, which offers clients upfront discounts and the chance to reduce premiums every year if members demonstrate they have managed to take steps to improve their health: for example, by reducing their BMI, blood pressure and cholesterol.
These plans offer clients the chance to reduce their premiums by up to 1 per cent a year by improving their health but clients do need to be aware that any reductions are not irreversible and clients who fail to maintain a healthy lifestyle can see their premiums go up.
