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Moratorium Period in Health Insurance in the UAE
We all know that health insurance helps us cover our medical costs, and it is an integral aspect of the UAE as the country values top healthcare services. However, most people remain clueless about every detail related to your health insurance policy, just like the moratorium period.
If we simply define it, a moratorium period is considered to be a waiting period in health insurance. It is the time after you purchase your policy, and certain claims and benefits are not covered. In this article, we will guide you more about the moratorium period along with its functionalities, needs, benefits, and much more. Whether you live in the UAE or not, understanding this information can be helpful, and you can make smarter decisions regarding your health insurance.
What is the Moratorium Period in Health Insurance?
As discussed above, the moratorium period simply refers to the period after which your health insurance company can’t deny any type of claim based on non-disclosure or misrepresentation. It is also termed a look-back period and is adopted as a safety clause for the policyholders. It is effectively curated to restrict insurers from denying any type of claim on the grounds of any inconsistencies in the declaration present in the proposal form.
The duration of a moratorium period in health insurance can vary depending on your insurance company and the type of health policy you prefer. The moratorium period can last from a few months to several years as well.
Purpose of Moratorium Periods:
The moratorium period in health insurance safeguards people from buying a health insurance policy only when they are diagnosed with a pre-existing health condition. This is not viable, as it can broaden the health insurance claims along with the policy premiums.
With the availability of a moratorium period, you can buy a health insurance policy in advance, especially if you are at a higher risk of suffering from pre-existing health concerns.
This can significantly reduce the financial risks for insurance companies and restrict them from charging high policy premiums abnormally.
How Does the Moratorium Period Work?
If you understand how the moratorium period works, it can benefit you with many advantageous aspects. For clarity, we have provided some brief points that explain the working procedure of the Moratorium period along with what is moratorium period is in health insurance.
It starts right after your health insurance policy becomes active.
The moratorium period starts right after your health insurance policy becomes active, and it majorly lasts for 2 years. However, the period can vary as per the insurer you are choosing.
Exclusion of Pre-existing concerns
Any type of medical conditions you had before choosing the policy are regarded as pre-existing conditions. So, during your moratorium period, the following conditions will not be covered.
You don’t need to disclose your complete health history.
The unique aspect of the moratorium period is that it allows policyholders to avoid disclosing their complete medical history. The insurance companies won’t need a detailed disclosure of your medical tests and diagnosis during the time of policy purchasing.
Coverage Increases by the End of the Period
Once you complete your moratorium period without any claims regarding your pre-existing diseases, the conditions will be covered without any exclusion.
Difference between Moratorium Period and waiting period in health insurance
To understand the complete moratorium health insurance meaning, you need to understand the period and how it differs from the waiting period.
A waiting period is considered to be the time after you buy health insurance during which pre-existing conditions and treatments are not covered. This majorly includes serious illnesses, maternity, etc. On the other hand, in the moratorium period, the pre-existing conditions are excluded for a fixed period.
In case of a waiting period, you need to declare everything about your pre-existing conditions when you buy the policy. But, with the moratorium period, you don’t need to disclose your complete medical details unless the claims are made.
The waiting period remains viable for 30 days for general illnesses and around 2-4 years for pre-existing conditions. The moratorium period lasts for around 2 years.
The waiting period for health insurance is suitable for people who have minimal or no pre-health risks. On the other hand, the moratorium period benefits those who want to start clean-slate insurance without disclosing their undergoing health conditions.
How are pre-existing conditions treated during the moratorium period?
Pre-existing conditions mainly raise a lot of concerns among policyholders while buying health insurance. So, it becomes necessary for you to understand how your pre-existing conditions are treated during your moratorium period.
They are not covered in the initial phase.
In case of a moratorium period, which lasts for around 2 years, any pre-existing conditions you had before buying the policy will not be covered. No matter if they cause hospitalisation or severe medical expenses, the insurance company will not cover those aspects.
Claims related to your pre-existing diseases will be rejected.
If you somehow raise claims regarding your pre-existing health concerns during the moratorium period in health insurance, it may get rejected. The following conditions are temporarily excluded by the insurance company.
Get ultimate coverage by the end of the moratorium period.
It is viable for you to not raise any claims related to your pre-existing conditions during the moratorium period. The following conditions will be automatically covered after the moratorium period ends by your insurance provider.
Keeps your insurance journey simplified
This valuable approach is befitting for people with manageable conditions who don’t require a series of medical tests and paperwork.
Benefits of the Moratorium Period in health insurance
Here, you can check out the key benefits of getting a moratorium period in health insurance:
Avail Affordable Premiums
Insurance companies can easily manage their premiums to be affordable with the help of a moratorium period. If your insurance company starts paying for your PED claims from the starting phase, they may face extreme losses. As a result, they may start charging higher premiums from you. But, with the availability of a moratorium period, the insurance companies can collect your premiums for around 2 years, and it can curb their financial liability.
Minimise Risks for Insurance Providers
The moratorium period significantly reduces the risks for insurance companies by restricting people from getting health insurance after they are diagnosed with a major issue. With a moratorium period, the insurers can cover your pre-existing diseases only after collecting premiums, which reduces the financial risks.
Encourage Individuals to buy Health Insurance Early.
The moratorium period lasts for 2 years in the UAE, and the insurance companies are not liable to pay for your pre-existing medical concerns for around 2 years. As a result, as a responsible individual, you may consider buying a health insurance plan earlier.
Improves peace of mind
With the moratorium period, you can be assured of getting your PED medical expenses covered after 2 years of coverage. This can promote your peace of mind, and you can majorly focus on your treatments.
Factors to Consider While Choosing a Health Policy with a Moratorium Period
Here, we have curated a list through which you can be aware of the factors that you need to consider while choosing your health insurance policy with a moratorium period.
Make sure to verify the length of your moratorium, as it varies as per different insurance companies.
Ask about the pre-existing conditions and what types of illnesses are excluded from the policy.
Make sure to check how your early claims can impact your future coverage.
Understand if the pre-existing conditions are covered automatically or not.
Prefer a reputed and professional insurance provider with vast experience.
Verify the insurance provider’s access to quality health centres.
Frequently Asked Questions about Moratorium Period in Health Insurance
How long is the moratorium period for health insurance in the UAE?
The moratorium period for health insurance in the UAE mostly lasts for 2 years. However, according to the insurance company and the health insurance type, the period may vary.
Does the moratorium period apply to pre-existing conditions in the UAE?
Yes, the moratorium period applies to pre-existing conditions in the UAE. However, they are not covered for a certain period, which is known to be the moratorium period.
Can I make a claim during the moratorium period in UAE?
Yes, you can claim during the moratorium period in the UAE. However, claims related to pre-existing conditions will be rejected by insurance providers.
What happens if I don’t disclose a pre-existing condition during policy purchase?
If your health insurance policy has a moratorium period, you don’t need to disclose your whole medical history, and it won’t affect your coverage later.
Does the moratorium period affect claims for newly diagnosed illnesses?
No, the moratorium period doesn’t impact the claims for newly diagnosed illnesses. They are majorly covered under your standard policy terms.
What’s the difference between full medical underwriting and moratorium underwriting?
In full medical underwriting, you need to provide a detailed health disclosure and tests before the coverage. On the other hand, in moratorium underwriting, you can avoid upfront declarations.
Can I reduce the moratorium period by paying an extra premium?
No, it is generally not possible to reduce your moratorium period by paying extra premiums, as it is a fixed condition included in your policy term.
Are maternity and dental claims affected by the moratorium period?
Maternity and dental claims have separate waiting periods and are not generally covered in the moratorium period. However, for more authentic details, you can always ask your insurance provider.