When considering private medical insurance (PMI) in the UK, one important decision is whether to opt for full underwriting or a moratorium.
What is Full Underwriting?
Full underwriting involves completing a detailed medical questionnaire, which includes questions about current and past medical conditions, family medical history, and lifestyle factors. Based on this information, the insurer will determine the level of coverage and any exclusions or limitations.
What is Moratorium?
Moratorium underwriting, on the other hand, does not require a detailed medical questionnaire. Instead, the insurer will not cover any medical conditions that existed or were treated within a set period before the policy was taken out (typically 2-5 years). After a certain amount of time has passed without any symptoms or treatment, the condition may become eligible for coverage.
The Advantage of Full Underwriting
The advantage of full underwriting is that it provides more certainty about what is covered and what is excluded, as the insurer has a full understanding of the individual’s medical history. It also tends to be at a lower premium per month. However, it can also result in exclusions for certain conditions.
The Advantage of Moratorium
The advantage of a moratorium is that it may be easier and quicker to obtain coverage. However, it can also result in uncertainty about what conditions are covered and may limit coverage for certain conditions in the future. It can be at a higher premium that Full underwriting.
The Decision?
Ultimately, the decision between full underwriting and a moratorium depends on individual circumstances and preferences. It’s important discuss this with your adviser who can carefully review policy documentation and speak with the insurer to fully understand the coverage, benefits, exclusions, and any limitations or restrictions of each policy.
* As with all insurance policies, conditions and exclusions will apply.
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