Explaining Moratorium on Private Medical Insurance
Moratorium underwriting is one of the main two types of private medical insurance. This type of private insurance does not include pre-existing conditions that you have had over the past five years for a certain amount of time. However, this type of insurance will normally cover these issues once that amount of time has passed. Moratorium underwriting is an option that policyholders can choose instead of full medical underwriting.
Most of these policies are what is known as rolling policies. This means that they will only cover conditions that you had beforehand if you have been free of any symptoms for around two years. If you have a fixed moratorium policy then this generally allows coverage for any condition, regardless of whether or not there has been a recurrence, once the first two years have passed. Fixed moratorium policies are, however, difficult to find. Most providers allow policyholders to choose between a moratorium or full underwriting policy. The question easily becomes how do you choose? It’s best to speak to an advisor before making a decision about the type of policy you feel is best for you.
There are a number of benefits associated with going with a moratorium underwriting plan. First of all, there is much less paperwork involved. You will not have to sit and complete form after form of information about yourself or have a medical examination conducted before purchasing your medical insurance policy. Second of all, you are not obligated to disclose all of your medical information to the provider. When you choose a moratorium policy, you are not required to remember every detail of your entire medical history and there is no risk that leaving something out will cause you to cause the policy to be invalid. You are also able to get a moratorium policy at a lower cost. These policies cover a number of pre-existing conditions after a certain amount of time and the amount of time for which pre-existing conditions are included is shorter than what is found within most fully underwritten policies.
Everything has its sore points, however. There are some downsides to choosing moratorium underwriting. First of all, any condition that you have had in the past five years is not covered by your policy and this includes minor symptoms that you may have certain diseases. For at least the first couple of years you have a moratorium policy, pre-existing conditions are not included. While fully underwritten policies are clear on what is and is not covered, moratorium policies are less clear about what is and is not covered. Sometimes you may not know if treatment is covered until you file a claim and the provider looks over your medical history. When you make a claim with this type of policy, the provider has to check into your medical history in order to ensure that they are responsible for coverage, and this can cause delays in them covering treatment. You also run the risk of not qualifying for a moratorium policy.
You should carefully way the pros and cons of a fully underwritten and moratorium policy before you make a decision.