moneysupermarket.com: ABI PMI figures

Commenting on ABI news over six million Brits are covered by Private Medical Insurance (PMI), Louise Cuming, head of protection at moneysupermarket.com, said: "We welcome the good news consumers are taking the need for protection seriously and are considering Private Medical Insurance. PMI is designed to cover the costs of treatment for ‘acute' conditions such as disease, illness or an injury likely to respond quickly to treatment, and gives peace of mind of knowing treatment will be available promptly.

"However, its important people consider their needs against the other suite of protection products available; income protection, life or critical illness cover for example. PMI is not suitable insurance for chronic conditions such as cancer where critical illness cover would be appropriate.

"Levels of cover and price vary widely so its important to be sure of the level of benefits you'd like and then shop around for the best price. For example do you want your cover to include seeing a specialist as an out patient; do you want a choice of hospitals, or would you be satisfied with a hospital in a limited range chosen by the insurer? Comprehensive plans are also likely to include extra benefits such as alternative therapies like acupuncture and aromatherapy."

moneysupermarket.com has the following tips when looking for protection:

Don't always be lured by the lowest premium; look at policy coverage and extras within the cover to make sure you are getting the best value for money

Make sure your answers are correct and give all of your relevant personal information and medical history, or a subsequent claim might be rejected

Always review cover at life-changing events such as a change of job, having children, a change in marital status, increased debt or moving house

When replacing a policy, always seek advice and compare like for like, as the premium may be cheaper but the coverage might not be as comprehensive. Never cancel anything until the new cover is in place

If the premium is too big for your budget, consider getting some initial critical illness cover you can add to later.