Which Is Better Full Medical Underwriting or Moratorium?

By Morehealth on Apr 27, 2026

Three Ways To Assess Your Medical History

1. Moratorium Underwriting

A moratorium is a common choice because it is quick to set up and requires very little upfront information. You do not need to complete detailed medical questionnaires when applying. Instead, the insurer applies a standard set of rules to determine what is covered.

How it works: The insurer generally looks back at the five years before your policy started. Any condition you had during those five years is automatically excluded. However, these exclusions aren't always permanent. If you have the policy for two consecutive years and don't receive any treatment, medication, or even advice from a doctor for that specific condition, the moratorium may be lifted, and you’re usually covered for it moving forward.

However, it’s important to be aware that this convenience can lead to delays later on if you need to make a claim, as the insurer will need to review your medical history at that point.

2. Full Medical Underwriting

Full medical underwriting (FMU) involves completing a detailed health questionnaire where you list every medical event, consultation and chronic condition you’ve had, typically over the last five to ten years.

How it works: The insurer’s medical team reviews your application (and sometimes contacts your GP) before they issue the policy. They will then provide a list of personal exclusions — or, depending on your history, no exclusions may be applied at all. You’ll know exactly what is and isn't covered before you pay your first premium.

This approach provides clarity from the beginning, which can be helpful if you want to know exactly where you stand before using the policy.

3. The Switch Option

The Switch Option (often called Continued Personal Medical Exclusions or CPME) is specifically for people who already have a private health insurance policy and want to move to a new provider.

How it works: Switching providers using your existing underwriting is the best way to protect your cover for pre-existing conditions and past medical history. This option prevents you from losing the cover you have already built up because the new insurer agrees to take on the same exclusions that you had with your previous company. This ensures your continuity of care remains intact without the need to start the process over again.

Many people assume that switching insurers means starting again or losing cover for existing conditions. In many cases, this is not the case, and options like this are designed to maintain continuity where possible.

The Application Process: How Much Information Is Required?

One of the main differences between these options is how much information you need to provide at the start.

With a moratorium, the application is straightforward. You do not need to share details of your medical history, and cover can often begin quickly.

With full medical underwriting, the process is more detailed. You will need to go through your medical history and disclose any relevant conditions. This can take more time, but it means the insurer has already assessed your situation before the policy begins.

For many people, the choice comes down to whether they prefer a quicker setup or more certainty from the outset.

What Is Better Moratorium Or Full Medical Underwriting For Your Premiums?

You might wonder if one method is cheaper than the other. Generally, the underwriting method itself doesn't have a massive impact on the price of your monthly premium. Insurers tend to price based on your age, location and the level of cover you choose.

However, FMU can sometimes be slightly cheaper because the insurer knows exactly what risk they’re taking on from day one. Because they’ve already excluded certain conditions based on your disclosures, they can sometimes offer a more competitive rate. With a Moratorium, the insurer is taking a bit of a gamble on your history, so the price reflects that unknown factor. If you’re asking what is better moratorium or full medical underwriting for your wallet, it’s often a very close call.

Coverage For Pre-Existing Conditions

Both approaches usually place restrictions on pre-existing conditions, but they handle them differently over time.

• Moratorium: Conditions from the previous five years are excluded at first. If you remain symptom, treatment and advice free for a set period, often two years, cover may be available later.

• Full medical underwriting: Exclusions are decided upfront based on your medical history and are usually permanent, although some policies may allow reviews in the future.

Claims Process Comparison

The claims experience can vary depending on the underwriting method.

With full medical underwriting, the insurer has already reviewed your history. This can make the process feel more straightforward, as fewer checks are needed when you make a claim.

With a moratorium, the insurer will usually review your medical records at the point of claim to confirm whether the condition is eligible. This can sometimes lead to delays while the necessary information is gathered.

Timeframe For Enrollment And Renewal Terms

If you’re in a hurry to get covered, a Moratorium is the clear choice for enrolment. You can often be insured within minutes. FMU can take several days or even weeks if the insurer needs to clarify something with your GP. At renewal, both types of policies generally work the same way. Your premium will be reviewed based on your age and any claims you’ve made.

Making The Right Choice For Your Health

Ultimately, the right choice depends on your personal situation and what matters most to you. If you prefer a quick and simple setup, a moratorium may be suitable. If you want clarity about what is covered from the start, full medical underwriting may be the better option. Taking time to understand how each approach works can help you avoid confusion later on.

Already insured? Contact us to find out about your options and to learn more about the benefits of private medical insurance.

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