Medical Underwriting

Medical underwriting as the name suggests is a term used in the health insurance and refers to the use of health and medical information of the person to allow or deny the coverage after the evaluation. One of the important roles of medical underwriting is that it is used in deciding whether to provide the coverage or deny it, it also helps in deciding the premium to be taken for a policy. The health insurance underwriting helps the insurer to know about your pre-existing condition that you have or had in tha past and how to cover it. This helps the insurer to deny any claim to be made for an ailment that has happened in the past. Health insurance is coverage for any ailment in the future and not that has happened in the past.

Medical underwriting is of two types:

  • Moratorium Medical Underwriting and
  • Full Medical Underwriting

Moratorium medical underwriting is one in which the person seeking coverage does not need to provide any kind of health information. However, the insured will have to accept that any condition for which he has been treated in previous 5 years will be excluded from their policy as covered. Thus it is the best policy if you never had any kind of ailments or have a history. In case of full medical underwriting the person looking for coverage has to give a full medical history of his and may have to answer a lengthy medical questionnaire which would generally be a part of the application. The insurer will go through this information and then decide on what to be covered and what need to be excluded. This is generaly considered good for those people who have a pre-existing condition and want to clearly define their condition and exclusion if any.

The advantages of Moratorium underwritings are:

  • It helps in quickly setting up a policy as no medical information is required
  • If the insured does not have any medical history for 5 years it will not have any exclusions
  • It allows coverage for pre-existing condition if no symptom or treatment for the same happens in two year period after the star of the policy.
  • The Advantages of Full Underwriting are:
  • It is very transparent as it allows you to know beforehand whether a particular ailment will be covered in your policy or not
  • You can have coverage for minor ailments even if you have suffered it in 5 years’ time.