Self-Employed Health Insurance UK: Cover, Cost & Tax
If you work for yourself, there is no employer sick pay, no company health scheme and no one covering your clients while you are off. Self-employed health insurance is private medical insurance (PMI) you arrange yourself. It pays for private treatment, so you can be seen, diagnosed and treated quickly and get back to earning.
This guide explains how self-employed health insurance works, what it covers, what it costs, how it is treated for tax whether you are a sole trader or a limited company director, and how to compare policies. Insured Health is an independent broker. We compare cover from leading UK insurers for freelancers, contractors, sole traders and company directors.
In short: self-employed health insurance is a personal policy that pays for private treatment of new medical conditions. Cost depends mainly on your age, where you live, how much cover you choose and your excess. Tax treatment depends on whether you are a sole trader or a limited company.
Why self-employed people take out private health insurance
The reasons we hear most often are practical rather than medical:
- Time off means lost income. An employee on sick pay can wait for an NHS appointment. A freelancer who cannot work does not get paid, so a long wait costs money as well as time.
- Faster access to specialists and scans. Private cover typically lets you see a consultant and have diagnostic tests within days or weeks rather than months, depending on the condition and the hospital.
- Control over timing. Being able to choose an appointment or surgery date around client work makes it easier to plan.
- Choice of hospital and consultant. Within the hospital list on your policy, you choose where you are treated.
Private cover works alongside the NHS. For emergencies, accident and emergency care, and the long-term management of chronic conditions, most people still use the NHS. If you want a broader introduction first, read how private health insurance works.
What does self-employed health insurance cover?
Cover varies between insurers and between policy levels, but most policies are built from the same blocks:
- Inpatient and day-patient treatment: surgery and hospital stays, usually the core of any policy.
- Outpatient care: consultations, scans and diagnostic tests. This is often where policies differ most, with some paying in full, some applying a limit.
- Cancer treatment: usually a core benefit, with the extent of cover varying by insurer and plan.
- Mental health support: optional or included depending on the plan. See our guide to mental health cover.
- Virtual GP: a phone or video appointment, often available at any hour. See digital GP services.
- Therapies: physiotherapy and similar, typically with limits.
For a fuller breakdown, see what private health insurance covers.
What it does not cover
Private medical insurance is designed for new, treatable conditions that begin after your cover starts. Typically it does not pay for:
- Pre-existing conditions, which are usually excluded when you start a new policy.
- Long-term (chronic) conditions that need ongoing management, rather than a cure.
- Accident and emergency care, which remains with the NHS.
- Routine pregnancy, cosmetic procedures and similar. Exclusions differ, so check each policy.
Our guide to what private health insurance does not cover goes through the common exclusions in detail.
How much does self-employed health insurance cost?
There is no single price. Basic cover for younger adults can start from around £30 per month, and costs usually rise with age and with more comprehensive cover. What moves your price most:
- Your age. Premiums generally increase as you get older.
- Where you live. Private treatment costs more in some areas, so postcode affects price.
- Level of cover. Adding outpatient care, mental health, therapies and extras raises the premium.
- Your excess. You agree an amount you pay towards each claim, and a higher excess lowers your premium.
- Hospital list. A restricted or guided list is cheaper than access to every private hospital.
- Underwriting and medical history. How your history is assessed changes what is covered, and sometimes the price. See full medical underwriting vs moratorium.
Our guide to how premiums are calculated explains each factor.
Ways to keep the cost down
- Choose a higher excess you could comfortably afford to pay.
- Pick a policy with a limited or guided hospital list.
- Limit outpatient cover to what you would actually use.
- Ask about plans where the NHS handles treatment if the wait is short, and private cover applies when it is not.
- Pay close attention to the optional extras, and add only the ones you want.
Cheaper is not always better. A policy that does not pay for the treatment you need is poor value at any price, so compare what is covered as well as the premium.
Tax: sole trader, partnership or limited company
How your business is set up changes the tax treatment of your premiums. This is general information, not tax advice, and rules can change, so confirm the position with your accountant.
- Sole trader. Premiums are paid from your own money. HMRC generally treats private medical insurance as a personal cost rather than a business expense, so it is not normally tax-deductible.
- Partnership. Usually the same as a sole trader: the premium is a personal cost for each partner.
- Limited company director. The company can pay the premium. It is usually an allowable business expense for corporation tax, but it counts as a benefit-in-kind for the director, who pays income tax on its value, and the company pays Class 1A National Insurance on it.
If you run a limited company, our guide to company director health insurance covers the company route in more detail. If you employ staff, see business health insurance for group cover.
How to choose a policy
- Decide what matters most. For many freelancers it is fast diagnostics, a virtual GP and mental health support. For others it is cancer cover or hospital choice.
- Set your excess. Pick the highest amount you could pay without difficulty.
- Check the hospital list. Make sure hospitals near you, and any you would want to use, are included.
- Understand underwriting. Read how your medical history will be treated before you commit.
- Compare outpatient limits. This is where policies at similar prices often differ.
- Look at the claims process. See how to make a claim so you know what to expect.
Insurers we compare
We compare cover from leading UK health insurers, including Aviva, AXA Health, Bupa, Vitality, WPA, The Exeter and National Friendly. Each has different strengths, so the right one depends on what you want from a policy.
Alongside private medical insurance
PMI pays for treatment. It does not replace your income if you cannot work. Many self-employed people look at it together with other protection:
- Income protection pays a regular amount if illness or injury stops you working.
- Critical illness cover pays a lump sum on diagnosis of certain serious conditions. See critical illness cover vs health insurance.
- Healthcare cash plans repay everyday costs such as dental and optical care, rather than paying for major treatment.
Not sure whether insurance is right for you? Compare it with paying for treatment yourself in self-pay vs private health insurance.
How Insured Health helps
We are an independent broker, so we compare policies across the market instead of selling you one insurer's product. Getting a quote takes a few minutes:
- Tell us a little about you and what you want covered, using the quote form on this page.
- An adviser contacts you to talk through the options and answer questions.
- We compare suitable policies and explain the differences in plain English.
- You choose, and we help you set it up. We can also help if you want to switch from an existing policy.
You can call us on 0800 131 0400 or email info@insuredhealth.co.uk.
Frequently asked questions
Is health insurance worth it for self-employed people?
It depends on your circumstances. The case is strongest if time off work costs you income and you would value fast access to diagnosis and treatment. It is a personal decision, and we can help you compare the cost against the benefits.
Can a sole trader claim health insurance as a business expense?
Generally no. HMRC usually treats private medical insurance as a personal cost for sole traders. There can be exceptions, so check with your accountant.
Can my limited company pay for my health insurance?
Yes. The company can pay, and the premium is usually an allowable expense. It is treated as a benefit-in-kind, so you pay income tax on its value and the company pays Class 1A National Insurance.
Can my limited company pay for my family's cover?
It can, but cover for family members who are not employees is usually treated as a higher-tax benefit-in-kind. Often a separate personal family policy is simpler. Ask your accountant which suits you.
Will it cover a condition I already have?
Usually not. Private medical insurance is designed for new conditions that start after your cover begins. If you already have private cover and want to switch, it is often possible to keep cover for conditions your current policy already includes. See our guide to pre-existing conditions.
What if my income changes from month to month?
Premiums are normally a fixed monthly amount, so they are predictable, and you can usually choose a level of cover and excess that fits your budget. If your finances change, tell us and we can review your options.
Does it cover mental health?
Many plans include some mental health support, and others offer it as an option. The level of cover differs, so check the detail. See mental health cover.
How quickly can I be seen?
Waiting times depend on the condition, the consultant and the hospital. Private treatment is usually quicker than NHS waiting lists for non-emergency care, but we cannot promise a specific timescale.
Do premiums go up each year?
Premiums normally rise over time with your age and with the rising cost of medical care, so it is worth reviewing your cover at each renewal.
Can I get cover if I am a contractor or freelancer?
Yes. Health insurance for freelancers, contractors and sole traders works in the same way as for anyone buying personal cover. Take a look at the occupation guides below to see how it applies to your line of work.
This guide is general information and not personal advice. Insured Health Ltd is authorised and regulated by the Financial Conduct Authority (FCA No. 774335). Policy terms, benefits and exclusions vary between insurers, so always read the policy documents before you buy.
