Underwriting Guide · 8 min read

Moratorium Underwriting vs Full Medical Underwriting

Moratorium underwriting and full medical underwriting (FMU) are two ways health insurance providers decide what is covered in your policy. The main difference is how they handle pre-existing conditions and your medical history.

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Written by Patrick Baxter, Founder & Health Insurance Broker

Fact-checked by Sadie Sansford, Business Development Director

Updated 15 September 2026

8 min read

What This Guide Covers

Moratorium vs FMU: key differences

What "fully medically underwritten" means

How moratorium works in detail

Why get private health insurance

Switching insurers: CPME & MHD

FAQs: cancer, costs & which is better

What Is the Difference Between Moratorium and Full Medical Underwriting?

Moratorium usually defers detailed medical-history checks until a claim. Full medical underwriting (FMU) assesses your history before cover starts and records the offered exclusions. Neither route automatically covers an existing condition or overrides the policy’s general exclusions.

The practical differences before you buy
Question	Moratorium	Full medical underwriting
When is medical history assessed?	Usually when you claim; application eligibility questions still need accurate answers.	Before the insurer offers terms; it may request further records when you claim.
What happens to existing conditions?	A defined look-back exclusion applies, with any later cover subject to the trouble-free and other policy rules.	The insurer assesses disclosed history and confirms exclusions or accepted cover in writing.
Is it cheaper?	Compare the actual quote. It is not automatically cheaper or more expensive.	Some insurers offer different pricing, but a lower premium is not guaranteed.
Can an exclusion change?	An eligible condition may regain cover if the full qualifying requirements are met.	Some exclusions can be reviewed; others remain. Ask for the review terms.
Are claims guaranteed to be faster?	Medical-history checks can add time.	Upfront assessment can reduce uncertainty, but does not remove claims checks or pre-authorisation.

The useful comparison is the cover actually offered, including any specific exclusions, alongside the premium. An insurer’s quicker application route is not necessarily the right choice for someone with a condition to discuss.

Is moratorium or full medical underwriting better?

Neither route is universally better; which one suits you depends on your circumstances, and the cases below explain why.

New to insurance: compare an FMU offer if you want clarity on a particular past condition before buying. Moratorium may involve less initial paperwork, but you need to understand the exclusions that apply until a claim is assessed.

Already insured: explore continued underwriting before considering a fresh moratorium or FMU application. A new application can exclude a condition that developed while your current policy was running.

Leaving a company scheme: ask about a group-leaver continuation option, its application deadline and the terms offered. Continuing benefits and medical history is not automatic.

For a managed long-term condition, our diabetes guide illustrates why eligibility to buy a policy and cover for the existing condition are separate questions.

What Does Fully Medically Underwritten Mean?

You answer the insurer’s medical questions before the policy begins. It may request further information from you or your doctor, then issue terms explaining any personal exclusions. Follow the questions carefully, including symptoms or investigations that have not led to a diagnosis.

The benefit is knowing the offered exclusions before you commit. It is not a guarantee that every future claim will be paid or that no more medical evidence will be requested. Treatment still needs to meet the benefit and authorisation rules.

Ask whether a particular exclusion can be reviewed and what evidence would be needed. For example, Saga’s full medical history terms describe a possible later review for eligible conditions; do not assume all FMU exclusions are either permanent or removable.

What Does Moratorium Mean in Health Insurance?

A moratorium is a rule for pre-existing conditions, and the moratorium clause is the policy wording that sets it out. It normally looks back over a specified period before cover starts and excludes relevant conditions initially. An eligible condition may later regain cover after a continuous trouble-free period after the relevant start date.

The look-back period and the trouble-free period are different. For example, Health+ from The Exeter uses a five-year look-back and two continuous years without symptoms, treatment, medication or advice. That does not mean every policy uses five years, or that every condition becomes covered after two years.

Current AXA Health Plan and Saga descriptions use three-year look-backs for their stated individual products. AXA also sets separate rules for some conditions. Older AXA products and employer schemes can differ.

What Should You Check in an FMU Offer?

Read the personal exclusions alongside the benefits, general exclusions, hospital access and excess. A policy can accept one past condition but exclude another; “fully underwritten” does not mean “fully covered”.

Does the exclusion name only the condition, or also related symptoms and complications?
Can it be reviewed, and after what period or evidence?
Are any planned tests or referrals still awaiting an underwriting decision?
Is the offered premium affordable at renewal as well as now?

Resolve any unclear wording before accepting the policy. Do not cancel existing insurance until a replacement’s terms and start date are confirmed.

What Does Underwriting Not Change?

Underwriting determines how medical history affects cover. It does not turn a treatment-focused policy into comprehensive outpatient cover or remove general exclusions.

Routine management of long-term physical conditions is generally outside individual PMI. Cancer and mental-health benefits can have specific exceptions and limits. A condition must meet both the underwriting rules and the selected policy benefits for treatment to be eligible.

Check the pre-existing conditions guide and the insurer’s actual policy wording. Private insurance also works alongside NHS services, including emergency care.

How Does Moratorium Underwriting Work?

Start with the wording for the product being quoted. The following example follows The Exeter’s published Health+ rules; it is not a universal rule for all insurers.

Look back: identify conditions falling within the five years before the relevant start date, including the symptoms and history specified by the insurer.
Initial exclusion: eligible new conditions may be covered, but the relevant pre-existing condition is excluded.
Continuous qualifying period: the condition must satisfy two years after the relevant start date without symptoms, medication, treatment or advice.
Claim assessment: the insurer checks the history and the other policy terms before confirming whether treatment is covered.

For a rolling moratorium, symptoms or treatment can interrupt the qualifying period. Do not stop prescribed medication, avoid medical advice or delay treatment to try to meet an insurance rule.

Continued Moratorium, CPME and MHD

Continued moratorium

This may carry forward the relevant moratorium start date and history when an insurer accepts a switch. It does not necessarily carry every benefit or exclusion unchanged. The new insurer can ask medical questions and apply additional restrictions.

Continued personal medical exclusions (CPME)

CPME is a switching route under which existing personal exclusions may be carried forward, subject to the new insurer’s assessment and terms. It is not a guarantee that every previously covered condition stays covered, and it is not another name for a fresh moratorium.

The Exeter’s product guide expressly says transfer cover may have additional medical exclusions. Saga’s continuation guidance also sets eligibility questions and specific group-leaver conditions.

Medical history disregarded (MHD)

MHD can be available on qualifying employer schemes. Past medical history is not individually excluded in the same way, but the scheme’s benefits, general exclusions and eligibility rules still apply. It is not an unrestricted individual policy available to every applicant.

Before switching: compare the written underwriting offer, pending investigations, exclusions, benefit limits and start dates. Keep your existing cover until the replacement is agreed. Our switching guide explains the practical checks.

Questions About Medical Underwriting

Is full medical underwriting cheaper than moratorium?

Not necessarily. Compare quotations for the same benefits, excess and hospital access. Some insurers price the routes differently, but FMU is not a universal discount and the lowest price may carry different exclusions.

Does a moratorium mean every condition is covered after two years?

No. An eligible condition must satisfy the full continuous trouble-free rule, and other exclusions can still apply. Symptoms, treatment, medication or advice may interrupt the period. Product rules and specified-condition exclusions differ.

Can I switch without losing cover for an existing condition?

It may be possible through an accepted continuation route, but it is not guaranteed. Continued moratorium and CPME are different arrangements. Check additional exclusions, benefits and the start date before cancelling existing insurance.

Can an FMU exclusion be removed later?

Some insurers will review specified exclusions after a qualifying period or further evidence; others remain. Ask what the written offer permits. A review does not guarantee removal.

Does full medical underwriting cover chronic conditions?

FMU does not override general policy exclusions. Routine ongoing management of chronic physical conditions is generally excluded; cancer and mental-health cover can have specific terms. Check the condition and treatment against both the underwriting decision and the benefits.

Do all insurers use a five-year moratorium look-back?

No. The Exeter’s Health+ uses five years, while current AXA Health Plan and Saga individual wording describes three years. A product’s general moratorium period is also not its only medical-history rule. AXA Health Plan’s Mental health care option is unavailable if, in the five years before joining, you were referred to a specialist other than your GP for a mental-health condition. This separate eligibility rule does not change the plan’s general three-year moratorium look-back. These are product-specific examples. Check the particular policy and edition rather than relying on the insurer name alone.

Moratorium Underwriting vs Full Medical Underwriting

What This Guide Covers

Expertly comparing the UK’s leading providers

Moratorium

Full Medical (FMU)

MHD

What Is the Difference Between Moratorium and Full Medical Underwriting?

Is moratorium or full medical underwriting better?

What Does Fully Medically Underwritten Mean?

What Does Moratorium Mean in Health Insurance?

What Should You Check in an FMU Offer?

What Does Underwriting Not Change?

How Does Moratorium Underwriting Work?

Continued Moratorium, CPME and MHD

Continued moratorium

Continued personal medical exclusions (CPME)

Medical history disregarded (MHD)

Questions About Medical Underwriting

Not Sure Which Underwriting Is Right?

Pre-Existing Conditions

Choosing the Best PMI

Is PMI Worth It?

Continuing Cover After Leaving

Average Cost Guide

Patrick Baxter