In this article, we explain what Moratorium Underwriting is and how it affects your health insurance policy.
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.
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.
Some of the benefits of moratorium underwriting include:
Choosing the right type of underwriting for your circumstances can be tricky, which is why it’s always best to seek independent advice from a trained specialist. If you need help navigating private health insurance please click this link and request a free quotation.
Alternatively, if you’d like to learn more about PMI before getting in touch, be sure to read our recent article “Best private health insurance UK” in which we review all of the leading providers.
Disclaimer: This information is general and what is best for you will depend on your personal circumstances. Please speak with a financial adviser or do your own research before making a decision.
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