Health insurance premiums
Understand health insurance premiums, how they work, and how they’re
calculated.
Edited by Darren Siddle,
health insurance expert at Bupa
Last updated 4 July 2025
2 minute read
What is a health insurance premium?
Your health insurance premium is the regular amount you pay each month or each year for your health cover.
By paying these premiums, your healthcare costs are covered. Expenses like hospital stays, GP visits and prescription medications can be paid for by your insurer.
Your premium price is based on your age, level of cover, and a few other key factors, including the excess you choose.
Your insurer will also review your price when it's time to renew your policy, especially if you make any changes.
How are my health insurance premium costs calculated?
All health insurers work out the cost of premiums differently. But often, the price you pay for cover is based on a number of key factors.
Factors that affect price
- Age – Prices are higher for older customers.
- Where you live – Healthcare costs are different around the country. Your price reflects the cost of care where you live.
- Whether you smoke – Cover will cost more if you smoke.
- Your BMI – Some insurers offer discounts if you have a BMI within a certain range.
- Who you cover – Some insurers offer discounts for couples or family policies.
- How often you pay – Some insurers charge more for monthly payments and offer discounts for paying annually rather than monthly.
More about health insurance costs
Bupa’s private health cover is designed to suit your health and wellbeing needs. We cover your mental health, provide access to breakthrough cancer drugs, dental care for all the family and more.
How does excess affect the price of health insurance?
Excess is what you agree to pay towards your treatment costs when you make a claim.
As an example, if treatment costs £3,000 and you have an excess of £500, you will pay £500 and your insurer will pay the remaining £2,500.
You can keep your premiums lower by choosing a higher excess amount. Choosing a lower excess amount will increase your premiums but will cost less when you claim.
How can I reduce my private health insurance premiums?
While all health insurers work out the cost of the premiums differently, there are things that can be done to lower the cost.
Factors that help lower your premiums
- Increase your excess – Having a higher excess usually means your monthly premium will be lower. This means you'll have to pay more if you use your policy for treatment.
- Review your level of cover – Policy holders can assess their healthcare needs and adjust the level of cover accordingly.
- Remove optional benefits – Policy holders can review optional benefits, like cancer cover and remove what they don't think is essential
- Compare different plans – Different insurers will calculate their cover and what's included differently. You can look around and find what best matches your healthcare needs.

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Health insurance guides
Health insurance excess
Learn how excess works and how much you should pay.
How to choose health insurance
Learn what to look out for when comparing cover.
How much is private health insurance?
See example costs and how price is calculated.
How to make health insurance more affordable
See example costs and how price is calculated.

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Bupa health insurance is provided by Bupa Insurance Limited. Registered in England and Wales with registration number 3956433. Bupa Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Arranged and administered by Bupa Insurance Services Limited, which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales with registration number 3829851. Registered office: 1 Angel Court, London, EC2R 7HJ.