Private Medical Insurance - underwriting and moratoriums

Underwriting is the process by which an insurer seeks to contain/control risk in offering cover to a new applicant. In practice this means that insurers will seek to identify pre-existing conditions or illnesses at the time the policy is taken out. Having identified those conditions or illness the insurer will consider whether to place conditions on the cover offered to reduce the risk of claim to parity with an applicant with no pre-existing condition or illness.

Medical underwriting

Some plans are underwritten at the point of application. This does not require applicants to complete a full medical history on joining, only a simple health declaration. However, any pre-existing conditions, no matter how long ago, will not be covered. After consideration of the application the underwriter may wish to exclude any condition deemed to be relevant.

Moratorium.

The alternative, "moratorium", is where the plan is underwritten at the point of claim. A moratorium eliminates the need to complete a medical history form or section on an application, thus simplifying and speeding up the application process. Under a moratorium cover is excluded for an initial period (normally the first 2 years) of membership for any conditions or related conditions which:

• the member was aware of
• had advice about
• or received treatment for
• during a specific amount of time before joining (normally the 5 years before joining).

Provided that during the next two years there is no further recurrence of that condition then should treatment be required after the expiry of the two-year period then the policy will cover it. It must be pointed out though that the phrase “no recurrence” is carefully defined to mean consultations, drugs, diets, injections and not just treatment. The length of the moratorium may vary by insurer. Some insurers may exclude certain conditions permanently e.g. pre-existing heart, cancer, mental or psychiatric conditions, regardless of a moratorium.

Our Protection Quotation service is a fast and easy way to pinpoint some of the best rates available from leading protection providers.

• You get real-time quotes from the UK's most competitive protection providers.
• You can quote as many times as you require and view the rates available for the very wide range of options available for protection.
• It is free of charge and you are under no obligation to deal with us.
• No subscriptions or passwords are required.