health cover

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If I take out health cover with moratorium will there be an issue that I haven't disclosed my cancer diagnosis and treatment?  I appreciate my cancer treatment won't be covered but will it affect my policy if I don't openly disclose it?

  • Thanks for your question  

     

    It’s important to be honest in answering any questions about your health that the insurance company asks you, as it may cause problems down the line if you need to make a claim.

     

    There are different ways of underwriting this type of insurance and the way it is underwritten determines whether or not pre-existing conditions, such as your cancer diagnosis are covered. The main types of underwriting are:

    • Moratorium underwriting

    This method often excludes claims relating to health conditions the member had, or recently suffered from, at the time the policy was taken out. The exclusion normally lasts for the first year or two of the policy (the ‘moratorium period’).

    If a claim is made after that time, the health condition is usually covered, providing there are no further symptoms, medical advice or treatment during the moratorium period.

    • Full medical underwriting

    This is a process an insurer uses to assess the likelihood of the insured person making a claim against the insurance.

    The insurer may ask for information about the person’s health, lifestyle and the health of their close relatives. They may do this through questions and medical reports. Based on the assessment, the insurer decides whether to offer cover, what premium they will charge and any other special terms or restrictions to include.

    • Medical history disregarded

    There is an alternative method of underwriting which is often referred to as ‘medical history disregarded’. This is usually only included in a small number of Private Medical Insurance policies offered through some employers. This type of underwriting, in effect, ignores pre-existing conditions, which means a valid claim could be made on medical conditions an employee has, regardless of when they happened.

     

    There are a wide range of PMI policies on the market which offer different levels of cover. It may help to seek independent financial advice to help you choose one.

    A financial adviser will be able to recommend a PMI policy suitable for individual needs. If family or friends cannot recommend an independent financial adviser visit this link where you can find details of local advisers.

     

    When choosing an independent financial adviser always check that they, and the company they work for, are authorised by the Financial Conduct Authority (FCA) formerly known as the Financial Services Authority to provide financial advice.

    Individuals and companies can be checked on the FCA register here.

    If you would rather speak to the FCA directly, they can be contacted on 0800 111 6768 from 8am to 6pm, Monday to Friday (except public holidays), and from 9am to 1pm Saturdays

     

     

    The Financial Guidance Service offers information and guidance on all aspects of your personal finances to help you make informed decisions in the following areas:

    • pensions and retirement options
    • questions about insurance policies
    • mortgages and money management
    • arranging wills and trusts to protect your family
    • general financial planning questions

     

    Kind regards,

     

    James

    Financial Guide

     

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