(back)
What is Moratorium cover?
The most frequent and inexpensive way to start a new
PMI Plan is by a Moratorium. Providing that you/family
are fit and well, with any pre-existing conditions being
in the dim and distant past, then this method of taking
up medical insurance can be very cost effective.
It is vital that potential purchasers understand what
Moratorium means, particularly if their past medical
record excludes them from benefits in certain areas.
When insurers offer such plans, you are not required
to provide any medical history.
However, the insurance company may therefore not cover
any medical condition which has existed in the last
2-5 years. Such conditions may automatically become
eligible for cover only when you do not have symptoms,
or receive treatment, medication, tests or advice from
your general practitioner, for that condition for a
period of (usually) two years, after your policy has
been made effective.
This has both advantages and disadvantages which have
to be carefully weighed up. For example, if you had
a benign growth removed last year and took on a Moratorium
Plan, then 18 months into your new Plan cancer was diagnosed,
this could mean excluded cover under Moratorium due
to the previous benign condition being a pre-existing
condition of less than two years.
These plans are quicker and very simple to take out
but caution is necessary when considering what treatment
you have had in the past five years and whether or not
such conditions may re-occur. Sales people should be
asked to clarify Moratorium terms particularly how far
back the company considers pre-existing conditions.
