At a Glance

Moratorium underwriting generally assesses pre-existing conditions when you claim, while full medical underwriting assesses your medical history when you apply. Moratorium can simplify the application but may provide less certainty about exclusions upfront. Full underwriting requires more information initially but can clarify exclusions before cover begins. The appropriate option depends on your circumstances and policy terms. Explore your options with Heath Crawford.

Jargon Explainer

Full Medical Underwriting (FMU): An underwriting method where you provide information about your medical history when applying. The insurer uses this information to determine which conditions, if any, will be excluded from your cover.

Moratorium Underwriting: An underwriting method where you generally don’t provide a detailed medical history when applying. Pre-existing conditions are initially excluded, but some may become eligible for cover after a specified continuous period without relevant symptoms, treatment, medication or medical advice.

Pre-existing Condition: A condition, illness, injury or symptom that existed before your policy began. The exact definition, qualifying period and circumstances considered can vary between insurers and policies.

Rolling Moratorium: A type of moratorium underwriting where the qualifying period can effectively restart if you experience symptoms, receive treatment, take medication or seek medical advice for the relevant condition. The precise rules depend on the policy.

Moratorium or Full Medical Underwriting

When you take out private health insurance, the insurer may assess your medical history before deciding what conditions can be covered. 

The common approaches insurers may take are either moratorium or full medical underwriting. Learning about these can help you compare policies and understand how previous medical conditions may affect your cover.

The difference between moratorium and full medical underwriting mainly comes down to how and when your medical history is assessed. With moratorium underwriting, you generally don’t need to provide detailed medical information when applying, but certain pre-existing conditions may be excluded under the policy’s terms.

Full medical underwriting involves providing information about your medical history when you apply, allowing the insurer to determine any specific exclusions or terms in advance.

In this blog, we’ll explain how both methods work, how they treat pre-existing conditions, what information you may need to provide and the advantages and disadvantages of each approach.

Speak with us to understand your options and compare private health insurance policies based on your circumstances.

How Does Moratorium Underwriting Work?

So, what does a moratorium mean in health insurance?

Moratorium underwriting means you don’t usually need to provide a detailed medical history when you take out private health insurance. Instead, your insurer reviews your medical history when you make a claim to determine whether the condition or symptoms were present before your policy began.

Generally, pre-existing conditions aren’t immediately covered, although some insurers may cover a previous condition after a specified period without symptoms, treatment, medication or medical advice. This period is often two consecutive years, but the exact rules vary by insurer and policy.

Because your medical history is assessed when you claim, rather than when you apply, it’s important to check the policy’s specific moratorium terms.

How Does Full Medical Underwriting Work?

Full medical underwriting means the insurer reviews your medical history when you apply for private health insurance. You’ll usually complete a medical questionnaire covering relevant previous conditions, symptoms, treatment and medical advice.

The insurer may also request further information from your GP if needed. The insurer then uses this information to decide what your policy will cover and whether specific exclusions apply. Pre-existing conditions are generally excluded, although the exact terms depend on the insurer and policy.

The key advantage is that you can usually see what is and isn’t covered before your policy begins. This can also make future claims more straightforward because your medical history has already been assessed. However, the insurer may still request a GP report when you make a claim to verify that relevant medical information was disclosed correctly when your policy was set up.

How Are Pre-Existing Conditions Treated Under Each Type of Underwriting?

The main difference between moratorium and full medical underwriting is how pre-existing conditions are assessed. With full medical underwriting, you disclose your medical history when applying, and the insurer determines which conditions, if any, will be excluded. These exclusions are normally confirmed before your cover begins.

With moratorium underwriting, pre-existing conditions are generally excluded initially, but you don’t usually need to disclose your medical history when applying. Instead, the insurer assesses your history if you make a claim.

Depending on the policy, a previously affected condition may become eligible for cover after a continuous period without symptoms, treatment, medication or medical advice, often two years.

The exact definition of a pre-existing condition and the requirements for future cover vary between insurers and policies.

Myth vs Fact

What Information Do You Need to Provide for Each Underwriting Method?

The information you provide depends on the moratorium or full medical underwriting method you choose. With full medical underwriting, you’ll usually complete a questionnaire about your medical history, including previous conditions, symptoms, treatment and medication. The insurer may also ask your GP for further information where necessary.

With moratorium underwriting, you generally don’t need to provide detailed medical information when applying. Instead, the insurer reviews your medical history if you make a claim. You may then need to provide details about previous symptoms, conditions, treatment or medical advice, and the insurer may contact your GP.

The exact questions and look-back periods vary between insurers, so you should always check the policy terms.

What Are the Advantages and Disadvantages of Moratorium and Full Medical Underwriting?

When it comes to moratorium or full medical underwriting, both have their own advantages and disadvantages. Moratorium underwriting can make applying for private health insurance quicker because you don’t usually provide your full medical history upfront. However, claims may take longer while the insurer checks your medical history.

Full medical underwriting requires more information when you apply, and the process may take longer. However, the insurer assesses your medical history before the cover starts, so you generally have greater clarity about exclusions and what your policy covers. This can also make future claims more straightforward.

Neither approach is automatically suitable for everyone. Your choice may depend on how much information you want to provide upfront and how important certainty about exclusions is to you.

Which Type of Private Health Insurance Underwriting Is Right for You?

There’s no single underwriting method that’s right for everyone. Your choice between moratorium and full medical underwriting depends on your circumstances and how you want your medical history assessed.

Full medical underwriting may suit you if you want greater clarity about exclusions before your policy starts. Your medical history is assessed upfront, so you can understand what is and isn’t covered before making a claim.

Moratorium underwriting may suit you if you prefer a simpler application without providing detailed medical information initially. However, your medical history may need to be reviewed when you claim, which can affect how quickly the claim is assessed.

When comparing policies, consider your medical history, preferences and the specific terms offered by each insurer.

Choosing Between Moratorium and Full Medical Underwriting

Your circumstances and priorities will determine which underwriting approach you prefer. The following can help you understand how each option may fit different needs.

Moratorium Underwriting

May be suitable if:

• You prefer a simpler application without providing a detailed medical history upfront.
• You’re comfortable with your medical history being assessed if you need to make a claim.
• You understand that pre-existing conditions may initially be excluded under the policy terms.

May be less suitable if:

• You want specific exclusions confirmed before your policy begins.
• You have an existing or recent medical condition and want to know exactly how it will be treated before taking out cover.
• You would prefer your medical history to be assessed at the application stage.

Full Medical Underwriting (FMU)

May be suitable if:

• You want greater clarity about exclusions before your policy starts.
• You’re prepared to provide detailed information about your medical history.
• You want your medical history to be assessed upfront to help clarify which conditions are covered, while understanding that further checks may still be carried out at the point of claim.

May be less suitable if:

• You prefer not to complete a detailed medical questionnaire when applying.
• You want an application process that generally requires less medical information upfront.
• You would rather have your medical history assessed when you make a claim.

Understand Your Private Health Insurance Underwriting Options With Heath Crawford

The choice between moratorium or full medical underwriting can affect how your previous medical history is assessed and when you find out about any exclusions. 

Moratorium underwriting generally involves less medical information at the application stage, while full medical underwriting assesses your history upfront. The right option depends on your circumstances, preferences and the terms available from different insurers.

If you’re unsure which type of underwriting may be suitable, Heath Crawford can help you compare private health insurance options from a range of UK insurers. An adviser can explain the relevant underwriting terms and help you understand how your medical history may affect your cover.

Speak with us to explore your options and compare private health insurance policies based on your circumstances.

Frequently Asked Questions

Will switching from Moratorium to Full Medical Underwriting cause me to lose cover?

Not necessarily. If you change your insurer or underwriting method, the new insurer will apply its own policy terms and underwriting decisions. Conditions excluded under your existing policy may not automatically become covered under a new policy. Before switching, check how your existing exclusions and any medical conditions will be treated to avoid an unexpected gap in cover.

What happens if I forget to declare a minor condition on a Full Medical Underwriting form?

You should provide accurate and complete information when answering an insurer’s medical questions. If relevant information is missing, the insurer may need to reassess the underwriting decision or a subsequent claim in line with the policy terms. If you’re unsure whether something in your medical history is relevant, ask the insurer or an adviser before submitting your application.

Lawrence Canning