Key Takeaways: What is a moratorium?
Understanding the differences between moratorium underwriting, full medical underwriting, continuing medical exclusions, and medical history disregarded is important when taking out healthcare cover. When taking out a policy, you should consider your own personal circumstances before you choose your underwriting option.
What's in this article
Jump to sections:
What is medical underwriting for health insurance?
What is moratorium underwriting?
Key features of moratorium underwriting
Full Medical Underwriting (FMU)
Comparing Moratorium and Full Medical Underwriting
Continuing Medical Exclusions (CME)
Medical History Disregarded (MHD)
What underwriting methods are available with an AXA Health Plan?
What is medical underwriting for health insurance?
Medical underwriting is the process health insurers use to decide what health insurance cover may be available to you, and how much it will cost. It will determine how your insurance will cover you for health conditions or symptoms you already have. The main underwriting methods are moratorium underwriting, full medical underwriting (FMU), medical history disregarded (MHD) and continued medical exclusions (CME) from your previous cover. In this guide, we primarily look at moratorium underwriting and compare it with other methods to help you make an informed decision about private medical insurance.
What is moratorium underwriting?
With moratorium underwriting, pre-existing conditions are not covered if the medical condition, symptom or treatment has occurred before your policy begins, or within a set period of time before your policy starts (which would be defined by your policy). A pre-existing condition refers to any illness, injury, or disease that:
• You have received medication, advice or treatment for before the start of your cover, or potentially within a fixed period before the start of cover (which would be defined by your policy).
• You have experienced symptoms of before the start of your cover: whether or not the condition was diagnosed, or potentially within a fixed period before the start of cover (which would be defined by your policy).
Although cover for pre-existing conditions is not immediately available with moratorium underwriting, it will usually become available once:
- You’ve been a member for a specific length of time (often two years in a row),
- Some moratoriums will also require you’ve had a period trouble-free from that condition since you started your policy (usually 12 or 24 consecutive months)
- ‘Trouble free’ usually means that for your medical condition, you haven’t:
- Had an opinion from a medical practitioner, including a GP or specialist
- Taken medication (including over the counter drugs)
- Followed a special diet
- Had medical treatment, or
- Visited a clinical practitioner, therapist, homeopath, acupuncturist, optician or dentist
- Had an opinion from a medical practitioner, including a GP or specialist
Key features of moratorium underwriting
No initial medical disclosure: Comprehensive medical histories aren’t required when you take out a plan, but medical history is likely to be checked before any claims are authorised.
Exclusion period: Cover for conditions (including undiagnosed conditions or symptoms you’ve had, or for which you’ve sought treatment or advice) within a specified period (usually five years) before the policy start date are excluded for a period determined by the policy (usually the first two years).
Cover usually available after a period of time (usually two years): If you haven’t sought treatment, medication, or advice for a pre-existing condition for a defined continuous period after the policy starts, that condition may become eligible for coverage.
Full Medical Underwriting (FMU)
With Full Medical Underwriting, your medical history is considered to decide what cover you can be offered. Normally you wouldn’t be covered for any medical conditions (including undiagnosed symptoms) within a set time (usually five years) before your policy started. Any medical conditions that begin after your plan starts will likely be covered in line with the terms of your plan.
Key Features of Full Medical Underwriting:
• Declaration of medical history required: You’ll complete a detailed health questionnaire when you take out a plan.
• Known Exclusions: Any exclusions are specified when you take out a plan, providing clarity on what's covered.
Comparing Moratorium and Full Medical Underwriting
| Aspect | Moratorium Underwriting | Full Medical Underwriting |
| Application Process | No detailed medical history required , but will likely be checked when making a claim. |
Detailed medical history required. |
| Pre-existing Conditions | Excluded initially; may be covered after a trouble-free period. | Assessed individually; exclusions specified upfront (which may be reviewed and potentially removed in future). |
| Exclusions | Exclusions determined at the time of claim. | Exclusions are stated from the start of cover. |
Continuing Medical Exclusions (CME)
Continuing Medical Exclusions (CME) underwriting is applicable if you’re joining an insurer from another insurer. It allows the transfer of existing terms, including any exclusions. Any exclusions, special terms or moratoriums would be on your membership certificate. Cover would be subject to the terms of your plan.
Key Features of CME:
• Transfer of Existing Terms: Maintains the same exclusions or underwriting terms from a previous policy.
• Minimal or No New Underwriting Required: Simplifies the process of switching insurers with minimal or no reassessment.
Medical History Disregarded (MHD)
Medical History Disregarded (MHD) underwriting provides cover for all pre-existing conditions without exclusions. This type of underwriting is usually limited to business policies. Your cover will be in line with the terms of your plan.
Key Features of MHD:
• No Exclusions: Includes all pre-existing conditions subject to the terms of your plan.
What underwriting methods are available with an AXA Health Plan?
Our AXA Health Plan offers fast access to private healthcare when you need it. At the heart of private health insurance is a commitment to your wellbeing and the wellbeing of your loved ones. With our AXA Health Plan, we offer private health insurance with moratorium and full medical underwriting which means, like most health insurance, you are only covered for new eligible conditions that develop after you join, and not pre-existing conditions.