Medical underwriting is the process in which a health insurer decides at what price and with which terms to offer you its insurance plans, based on your sex, age, medical history. and your family's medical history.
The two most common methods of medical underwriting are known as moratorium underwriting; a relatively simple process, and full medical underwriting; a more in-depth analysis of a client's health information.
Moratorium underwriting: This type of health insurance allows applicants to receive coverage without having to immediately disclose their entire medical history. It excludes pre-existing medical conditions you have suffered for a set period (usually the past ﬁve years). In some cases, once you’ve been on the policy for a set period (usually two years) the insurer will then consider covering you for that condition.
- Less paperwork Easier
- You may not be covered for certain conditions
- You may not know which conditions you are covered for and which you are not until you try to make a claim
Full medical underwriting: This type of health insurance requires you to disclose your medical history to the insurance company. The insurance company may agree to accept all or some of your pre-existing medical conditions with an increased premium, exclude all of them or even decline cover altogether.
- Possibility of coverage for a pre-existing medical condition
- Even if your medical condition is excluded from the coverage, you will know from the beginning - No surprises.