When purchasing private health insurance in the UK, the way you’re underwritten — moratorium or full medical underwriting (FMU) — has a major impact on your cover, premiums, and claims process. Take a look at this guide to understand the differences and decide what’s right for you.
📋 What Is Medical Underwriting?
Medical underwriting is how an insurer determines your health risks and coverage terms. It involves assessing your medical history to define what’s covered or excluded. The two main underwriting types in the UK are:
- Moratorium Underwriting
- Full Medical Underwriting (FMU)
🕒 Moratorium Underwriting
How It Works:
- Minimal Disclosure: You provide limited medical history when applying.
- Automatic Exclusions: Conditions from the past 5 years are excluded for 2 years.
- Possible Reinstatement: Conditions may be covered again after 2 symptom-free years.
Advantages:
- Quick and simple application process
- No detailed medical history required upfront
- Future coverage possible for pre-existing conditions
Disadvantages:
- Uncertainty at the point of claim
- Pre-existing exclusions apply automatically
- Claims can be delayed while history is assessed
📑 Full Medical Underwriting (FMU)
How It Works:
- Detailed Disclosure: Full medical history is provided during the application.
- Clarity Upfront: Known exclusions and terms are established early on.
- Fixed Terms: Pre-existing exclusions are usually permanent unless medical evidence is provided.
Advantages:
- Full transparency from day one
- Possibility of covering some pre-existing conditions
- Faster claims due to already assessed history
Cons:
- Longer and more invasive application process
- Potential for higher premiums based on health risks
📊 Comparison Table
| Feature | Moratorium Underwriting | Full Medical Underwriting (FMU) |
|---|---|---|
| Medical Disclosure | Minimal | Comprehensive |
| Pre-existing Conditions | Excluded for 2 years | Reviewed and may be excluded |
| Clarity of Coverage | Uncertain until claim | Transparent from the beginning |
| Speed of Claims Process | Slower | Faster |
| Premiums | Typically higher | Possibly lower |
🤔 What’s Best for You?
- Choose Moratorium Underwriting if you want a faster application with less paperwork and you’re okay with uncertainty around pre-existing conditions.
- Choose Full Medical Underwriting if you want upfront clarity and have serious conditions requiring detailed disclosure.
🛠️ Alternatives and Considerations
- Transfer Moratorium: Switch insurers while keeping existing moratorium terms intact.
- CPME: “Continued Personal Medical Exclusions” allows transferring FMU policies without losing original terms.
- Medical History Disregarded: Often for companies; offers wide coverage but at a higher premium.
📝 Final Thoughts
Choosing between moratorium and full medical underwriting depends on your health background, risk tolerance, and how much detail you’re comfortable providing. For personalized advice, speak with a health insurance advisor who can help you select the most suitable plan for your circumstances.