What is underwriting in the context of health insurance?
The term underwriting is used to describe the process of assessing and evaluating the risk involved in insuring an individual or business. All health insurance policies will undergo a form of underwriting, but in this article, we look specifically at moratorium underwriting.
What is moratorium underwriting?
Moratorium underwriting is a type of private medical insurance underwriting that automatically excludes pre-existing conditions from the last five years for a set timeframe - typically two years - but may cover them thereafter.
In essence, by categorically excluding pre-existing conditions from the past five years, the insurer removes the need to evaluate your medical history upfront. There are advantages and disadvantages with this which we’ll explain later in this article.
While moratorium policies automatically exclude pre-existing conditions for the past five years, many will provide cover for those pre-existing conditions if you have been symptom-free for two years.