Health Insurance Moratoriums Explained

If you have been researching private medical insurance, you may well have come across moratorium policies. In the context of private healthcare insurance, a moratorium is a period of time that must elapse before claims for pre-existing conditions can become eligible under a new private health insurance plan.

Under a moratorium policy you won’t be asked for details of your medical history. However, any conditions that existed for a set number of years (usually two to five) prior to you becoming a policyholder will not be covered until you have had a specified number of years (usually two or three) symptom-free and advice-free as a policyholder. This approach means that the insurance company will only consider your medical history when you need to make a claim, saving time and effort when you apply and allowing you to become a policyholder with the minimum of fuss.

Under a moratorium policy, it may well be that pre-existing medical conditions are never covered but health insurance cover could still be given for new and unrelated illnesses and diseases.

Health insurance moratorium examples

The following examples will aid your understanding of moratorium underwriting.

Example one

Mrs Jones, aged 45, had an ovary removed two years ago and now wishes to become a health insurance policyholder. Since her operation Mrs Jones has had no further follow-up from her gynaecologist, nor seen her GP for ovary-related advice, nor had any symptoms related to her original ovarian problem.
In this instance Mrs Jones will not be covered for anything related to ovarian problems for the first two years of the policy.

Example two

Mr Willis, aged 55, had bowel cancer diagnosed and treated four years ago but has follow-up specialist reviews every six years to check he has been cured. His last check up was one month before he became a medical insurance policyholder.

In this instance Mr Willis will not be covered for anything related to bowel cancer for the first two years of the policy. However, if Mr Willis has another routine check up for bowel cancer five months after taking out a policy then he will have to wait a further two years from this last consultation date before any procedure related to bowel cancer can be covered.

Example three

Mr Simpson, aged 67, has high blood pressure and raised cholesterol. He takes medication for both conditions and this controls both the blood pressure and cholesterol levels.

In this instance Mr Simpson will never be cured of his condition and will always require treatment to control it. As a result it is very unlikely that he will ever be covered for conditions related to high blood pressure and cholesterol problems, such as heart and vascular treatments.

Patient Choice provides cost-effective private health insurance policies for individuals and businesses in the UK. For more information visit the Patient Choice website.