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Underwriting and private medical insurance

An application form for private medical insurance will generally be underwritten in one of two ways. Underwriting is a review of the risks of your policy, and approval by the company.

The two forms of underwriting are known as ‘moratorium underwriting’ and ‘full underwriting.’ Understanding the different forms of underwriting allow health insurance customers to better understand their own policies.

What is Moratorium Underwriting?

Moratorium underwriting is a common form of underwriting employed by private medical insurance companies in the UK. It covers each individual under a PMI policy, but excludes any medical conditions for which advice, treatment or medication have been sought in the five years (sometimes more) preceding the start of the plan.

Usually, if all medication, consultations and treatments have ceased or disappeared after 2 years (or a similar period) then the cover for that condition will resume. Some pre-existing conditions will never be covered, however, unless the health insurance is specifically designed to cover them. Specialist policies include cancer cover.

The advantage of moratorium underwriting for insurers is that it is quicker and requires

What is Full Underwriting?

Full Underwriting involves a medical declaration provided by each individual covered by the plan. This information is used by the underwriter to assess the risk factor for each individual. Serious pre-existing medical conditions are sometimes permanently excluded from being covered.

Do I get a choice of what type of underwriting I have?

Sometime a private medical insurer will give consumers a choice, and the most suitable method of underwriting will depend on the individual. Some insurers offer only full underwriting, whilst recently some companies insure all their policyholders using moratorium underwriting.

What should I keep in mind?

Always remember, when it comes to your application form and underwriting, to be completely truthful and answer all questions in full. Failure to disclose any information could lead to claims being rejected, and invalidate your private medical insurance policy.

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Health Insurance Partners