Policyholders pay regular premiums to the insurance provider. In return, the insurance company covers the costs associated with medical services and treatments, depending on the terms of the policy.

Private health insurance generally covers a range of medical services, including hospital stays, surgeries, diagnostic tests, and specialist consultations. Coverage can vary, and policies may also include additional benefits like dental and vision care.

In the UK private health insurance is optional. However, some individuals may choose to purchase it to supplement the NHS or to have access to additional healthcare options.