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.