Personal medical insurance

The older you are, the higher your premiums

The cost of personal medical insurance increases with age: while a 21-year-old might pay around £20 per month for a standard policy, a 71-year-old would be charged five times that amount. The reason for the difference in premiums is simple: young people are less likely to make a claim.

Personal medical insurance is much more expensive for older people: even a cheap policy such as Sainsbury's would cost £113 per month for a 71-year-old, while a 21-year-old would pay just £21.95 for the same level of cover.

The reason for the different premiums for the same personal medical insurance is simple: the older you are, the more likely you are to suffer serious injury or illness. From an insurer's point of view that means you are much more likely to claim on your policy, whereas a 21-year-old is more likely to pay premiums for year after year without making a single claim. As all insurance is based on risk, the older you are the higher the risk - and the higher the premium.