Hi Martin,
The reason Klee needs to buy PHI is because this is a thread about applying for a NLV (Non Lucrative Visa). My post prior to yours explains:
"Hi Klee,
Just to add to what AngeBadge has said, you can't apply for an S1 more than 4 weeks ahead of moving to another country. Given the length of time the visa could potentially take to process, you could end up in a situation where you've transfered your right to State healthcare to Spain via the S1, but you're still in the UK. I think most pensioners will buy 1 year's PHI, then cancel it as soon as they've registered their S1 in Spain."
Although you said that you and your wife used your S1s for your residency application, you didn´t explain earlier that it was for residency applications submitted prior to the Brexit deadline of 31 December 2020, rather than under the new rules for Third Country Nationals.
Kind regards,
Kim