Private healthcare insurance on a moratorium basis
21/08/2009
If you are taking out a medical insurance policy for the first time it may be offered on a moratorium basis. This means that any conditions that existed in a set period prior to you becoming a policyholder (for example, three years) will not be covered until you have had a specified symptom-free and advice-free period as a policyholder (for example, two years).
The exact periods will be defined by individual healthcare insurance providers.
This approach means that your medical history will only be considered 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.
The following examples are designed to aid your understanding of how moratorium underwriting works in practice.
Example 1: A one-off pre-existing condition that will be covered after two years
Mrs Jones, aged 45, had an ovary removed two years ago and now wishes to become a medical insurance policyholder. Since her operation Mrs Jones has had no further follow-up from her gynaecologist nor seen her GP for ovary-related advice. She hasn’t 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 health insurance policy.
Example 2: An ongoing pre-existing condition that will be covered two years after treatment/follow-up is complete
Mr Willis, aged 55 years, had bowel cancer diagnosed and treated four years ago but has six-monthly follow-up specialist reviews to check he has been cured. His last check up was one month before becoming a policyholder.
In this instance Mr Willis will not be covered for anything related to bowel cancer for the first two years of the policy. But if Mr Willis has another routine check up for bowel cancer five months after taking out his medical insurance 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 3:
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 medical insurance policies for individuals and businesses in the UK. For more information visit the Patient Choice website.
