BUPA has launched a private medical insurance plan which it claims undercuts premiums on similar pla...
BUPA has launched a private medical insurance plan which it claims undercuts premiums on similar plans by up to 65%.
The product offers an excess up to £2,000 and guaranteed rates for 10 years.
A policy holder aged 30 who took out BUPA's original fixed price over five years would be paying £63.63 per month. Under its latest PMI plan, the same applicant opting for a £2,000 excess over the same period would pay just £20.69 per month - a 67% reduction.
Clients opting for the BUPA Fixed Price Plus plan can opt to self-pay for the cost of treatment up to an excess of £1,000 or £2,000 with the balance being covered by insurance if the total cost is higher. The policy is made up of comprehensive medical cover, serious illness cover up to £20,000, a fixed price guarantee for five or 10 years, access to a high interest health savings account and a 24-hour helpline staffed by nurses.
Adam Lewis, spokesman for BUPA, said the latest product was the next phase of its fixed price scheme which was launched in December last year.
He said: "This works in a similar way but also offers high excess options of £1,000 and £2,000."
The move was announced just days after Standard Life Healthcare launched a PMI product that slashed premiums by 80%.
The product, called Choices, also carries an investment option to provide a personal health fund to pay for cover and a treatment information service to help people organise and negotiate treatment below its excess levels of £1,000, £2,500 and £5,000.
Lewis admitted the scheme was similar to the Standard Life plan but said: "We also provide access to the BUPA Healthline, a telephone helpline similar to NHS Direct.
"We are also offering serious illness cover up to £20,000. It is effectively a critical illness option that we have bolted on to the policy which covers the standard cancer, stroke and heart attack without affecting any of the claims made."
Steve Flanagan, BUPA sales director, said: "This is a new type of product at a price that is attractive to clients of IFAs. It combines the protection that matters most to people by offering medical insurance, with the reassurance of critical illness cover and access to a high interest savings account with instant access for health withdrawals."
Initial commission is 35% of the first year's subscription for the five-year option, 45% for the 10-year option and 9% of total subscription for the lump sum option.
For more details on self-pay, see feature on page 37
