Gordon, 58, wishes to take out a private medical insurance (PMI) policy. He is in generally good health but works in an extremely stressful position as a highly paid civil servant. However, due to the recession, he will probably find himself retiring within the next year or two with a generous pension. What issues should he be looking at?
Richard Blacker, UK Independent PMI is a lifetime commitment, so therefore it should be budgeted into Gordon's retirement fund. With average annual increases for age and inflation running at about 12%, premiums will double every six to seven years, so it is vital to look at policies that can be altered later in life if premiums become too expensive. Some policies will offer attractive no claims discounts at the outset, but Gordon should work out the base premium without this as eventually he will use the policy, and it will be lost. Some companies offer policies with no annual age incre...
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