What is moratorium underwriting?
When you take out private health insurance, you will need to choose how your medical history is assessed. One of the most common options in the UK is moratorium underwriting.
Instead of asking you to complete a detailed medical history upfront, this approach takes a ‘wait and see’ approach. You do not declare any health conditions when you apply. Instead, the insurer will only review your medical history if you make a claim after the policy starts.
They do this to see if your claim is for a pre-existing condition. That generally means anything you have had symptoms, treatment, medication, advice or tests for before your policy started. Generally, claims aren’t paid for pre-existing conditions, although there are exceptions.
How moratorium underwriting works in practice
If you take out a policy with moratorium underwriting, when you make a claim the insurer will look back at your medical history, going back a set period before your policy began. They will check whether the condition you are claiming for is new or linked to something you had before your policy began.
They usually go back up to five years, though sometimes it’s three, depending on the insurer. If you had symptoms, treatment or advice for a condition during that time, the condition will typically be excluded and the claim denied.
However, if you go through a continuous period after your policy starts without symptoms, treatment, medication or medical advice for that condition, it may become eligible for cover. This period is usually two years after the start of your policy, but it can vary by insurer.
The insurer may look at whether you:
Saw a GP or specialist about the condition.
Took medication (including over-the-counter treatments).
Had tests or treatment.
Sought medical advice or therapy linked to the condition.
Followed a special diet to manage the condition.
If any of these occurred in the set period, your claim may be denied.
A simple example
To make this easier to picture, imagine you had a knee injury 18 months ago and saw your GP, but it fully settled. You then take out a moratorium policy. At this point, the knee injury is not covered, as it happened within the exclusion period.
If you remain symptom-free and do not seek treatment or advice for that knee injury for two continuous years after your policy starts, that condition may become eligible.
If the knee problem returns within those two years and you seek advice or treatment again, the two-year qualifying period would usually restart.
The key point is whether the condition stays inactive for two years after your policy begins.
Pros and cons of moratorium underwriting
Moratorium underwriting is designed to keep things simple when you apply for your policy. However, it does come with a few trade-offs.
Advantages of moratorium underwriting
Policies can often be set up more quickly than other underwriting options as there are usually no health questions asked at the application stage.
If you have not had significant health conditions in the past few years (typically three or five, depending on the insurer), no immediate exclusions are applied.
Health issues outside this ‘look back’ period are generally not treated as pre-existing and may be covered, subject to policy terms
Some pre-existing conditions may become eligible for cover after a continuous two-year symptom-free period once the policy has started.
Disadvantages of moratorium underwriting
Even relatively minor conditions within the past five years may be automatically excluded, with limited flexibility from insurers.
You won’t have full clarity on exactly what is covered until you make a claim, as your medical history is reviewed at that point.
This can sometimes mean more uncertainty when it comes to understanding cover in advance compared with full medical underwriting.
Moratorium vs full medical underwriting
Moratorium underwriting is one option for assessing medical history. The other main option is full medical underwriting.
With full medical underwriting, you complete a detailed health questionnaire when you apply. The insurer assesses your medical history upfront and confirms what is and is not covered before the policy begins.
Here is a simple comparison of the two approaches:
Feature | Moratorium underwriting | Full medical underwriting |
|---|---|---|
Full medical disclosure when applying | No. Your medical history is only reviewed when you make a claim. | Yes. You complete a full health questionnaire when you apply. |
How quickly you can get cover | Usually faster as there is no medical questionnaire at the application stage. | Can take longer as your medical history is assessed before cover starts. |
Clarity of cover | Less certainty upfront as exclusions are only confirmed when you claim. | Clear from the start as exclusions are listed in your policy documents. |
Pre-existing conditions | Conditions from the last few (typically five, sometimes three) years are excluded and assessed at claim stage. | Based on what you declare, with exclusions confirmed before cover begins. |
Speed at which claims are assessed | Medical history is reviewed when you claim to check if the condition is pre-existing, which can add time to the claim. | Medical history is already assessed, so claims are usually quicker to process. |
Removal of exclusions | Some conditions may become eligible for cover after a continuous symptom-free period – often two years. | Exclusions are usually set at the start and remain in place. |
Both approaches are widely used and suit different preferences. What’s right for you will depend on your medical history and whether you prefer simplicity at the start or certainty from day one.
What happens when you make a claim?
When you need treatment on a moratorium policy the process usually begins with your GP, who will refer you to a specialist if needed. Here’s a summary of how the claims process might work:
Your GP provides a referral if specialist treatment is needed.
You contact your insurer with your policy details and referral information.
The insurer reviews your medical history.
They decide whether the condition is new or linked to something pre-existing.
If approved, they confirm that you are covered and guide you through treatment.
Because this review happens at the claim stage, it can sometimes take longer than with full medical underwriting.
Moratorium underwriting: key things to be aware of
The approach is designed to keep applications simple and faster at the start.
You will not know every detail of what is covered until you make a claim.
Claims may take longer while medical history is reviewed.
Conditions linked to past symptoms may be excluded.
Cover can sometimes become available after a qualifying period.
Who might moratorium underwriting suit?
This approach is often chosen by people who want quick cover without completing detailed medical forms. It can work well if you have a relatively straightforward medical history and are comfortable with your cover being assessed at the point of claim rather than when you apply.
It may also appeal to you if you have had a health condition in the past but are hoping it could become eligible for cover again. That would particularly apply if you expect to go two or more years without symptoms, treatment or medical advice.
Getting help with underwriting choices
Choosing between moratorium and full medical underwriting is an important part of setting up private health insurance. The right option depends on your medical history, how much certainty you want at the start and how you prefer your cover to be assessed.
Because the differences can seem quite technical, it may make sense to get some guidance before making a decision. At Money Service, our specialist advisers are here to help explain how each underwriting approach works and how it could apply to your own situation.
We can also review different policies from the UK’s leading insurers and highlight key differences. That way, you aren’t left comparing everything yourself. Better still, this support is completely free of charge.
We can help with things like:
Explaining how moratorium and full medical underwriting could each work for you in practical terms.
Helping you understand how your own medical history may be treated.
Comparing policies from a panel of leading UK insurers to find you the right level of cover at a competitive price.
Highlighting differences in exclusions, cover and claims approach.
Making it easier to see which options are more suitable for your needs.