Legal & General has launched a new private medical insurance plan that rewards policyholders for loyalty and offers a no-claims bonus.

Andy Sampson, Legal & General's head of planning and research, said the HealthCare Rewards plan resulted from research among independent financial advisers and consumers.

Sampson said of the features of the policy: “People want to be valued by insurers – to them it is a long-term relationship.”

Policyholders will get rewards every three years for staying with Legal & General and also for not claiming on the policy.

The reward can be taken as a discount on the cost of the next three years' cover, as a payment holiday or as a refund on premiums.

There is a choice between annual increases in premiums and three-year fixed increase. Payment protection is automatically included in the plan.

Different excesses attract different discounts. A £200 excess qualifies for a 7.5% discount, while electing to pay a £1,000 excess gives a 40% discount.

Sampson said the larger excess was likely to appeal to people who expected to pay for healthcare and simply wanted to limit the amount they had to pay.

Premiums in the plan are calculated for individual family members rather than on the age of the main policyholder and there is a choice of full medical underwriting or moratorium.

John Castagno, Legal & General's managing director, said: “Customers will still enjoy all the benefits of traditional PMI such as prompt access to treatment, while building up a reserve to off-set premiums in the future, should they wish to do so.”