Moratorium vs full medical underwriting — which is better?

Moratorium is the default: you fill in nothing, and any condition treated, medicated or symptomatic in the previous five years is excluded until two years symptom-free. Full Medical Underwriting (FMU) requires a full history disclosure now, with insurer decisions upfront. Moratorium is faster and simpler; FMU is safer for anyone with a chequered medical history.

Key numbers

• Moratorium look-back: 5 years
• Moratorium clearance: 2 years symptom-free
• FMU decisions before cover: 100% upfront
• % of UK PMI on moratorium: ~87%

The detail

Moratorium suits healthy applicants who don't want paperwork. FMU is essential if you have historical mental health, cancer, orthopaedic or cardiac history — otherwise you risk a nasty surprise at claim time when the insurer applies exclusions retrospectively.

How moratorium actually works at claim

Nothing is assessed when you buy. You answer no medical questions, cover starts quickly and the price is usually a little lower. The assessment happens when you claim: the insurer requests your GP records and asks whether the condition you are claiming for was treated, medicated, investigated or symptomatic in the five years before the policy started. If it was, the claim is declined until you have been two continuous years clear of symptoms, treatment, medication and advice while covered by the policy.

How full medical underwriting works

You complete a detailed health declaration, and the insurer may write to your GP. Underwriters then issue your terms in writing before cover begins: either standard acceptance, a specific written exclusion, or occasionally a premium loading. The advantage is certainty — you know precisely what is and is not covered on day one, and there is no retrospective argument about your history at claim.

Choosing between them

Take moratorium if you are broadly healthy, have had nothing significant in five years, and want cover in place quickly. Take FMU if you have any meaningful history — a back injury, an anxiety episode, an investigated lump, a cardiac referral — and would rather see the exclusion written down than discover it during a claim. Moratorium is cheaper up front but converts uncertainty into risk you are carrying yourself.

The CPME third option

Continued Personal Medical Exclusions (CPME) is used when switching from another PMI. Existing exclusions carry across but nothing new is added — you preserve the cover you already have.

The fourth option, for employers

Medical History Disregarded (MHD) is only available on group schemes, usually from around ten to twenty lives upward. Pre-existing conditions are covered from day one with no exclusions at all. It is the strongest underwriting basis available in the UK market, and where an employer can reach the size threshold it is almost always worth asking for.

Mistakes we see most often

Three recur. Assuming a five-year-old problem is too old to matter — it is not, five years is the look-back window. Assuming the two-year clearance clock starts at diagnosis — it starts from the last symptom, consultation or prescription. And declaring nothing on FMU to secure cheaper terms, which risks the policy being voided for non-disclosure at exactly the moment you need it.

The four underwriting bases compared

Broker verdict

“The single biggest source of claim disputes we see is moratorium clients who assumed a five-year-old back injury was 'ancient history'. It isn't — five years and two symptom-free.” — , Head of Operations, PremierPMI

Related questions

Can I switch from moratorium to FMU later?

Not in the same policy, but a new insurer will accept FMU at switch.

Does moratorium exclude a condition forever?

No — it re-includes automatically after two continuous symptom-free, treatment-free, medication-free years.

Is moratorium cheaper than full medical underwriting?

Usually slightly, though the gap is often small. What you are really buying with FMU is certainty rather than cover, so compare the terms and not just the premium.

Does the insurer see my GP records?

On FMU they may request them before offering terms. On moratorium they will normally request them when you make a claim, which is when the look-back is applied.

PremierPMI is a UK private medical insurance broker specialising in whole-of-market placement across 10+ leading UK health insurers including Bupa, AXA Health, Aviva, Vitality, WPA, Freedom Health, The Exeter, General & Medical and National Friendly. FCA regulated (Tesha Family Ltd, FRN 1029667). Speak to a broker on 020 4525 0884, WhatsApp 020 8064 2273, or email contact@premierpmi.co.uk.