What is the Moratorium Period in Health Insurance?

In this world, even healthcare costs are going out of control, thus falling ill can be Nobody wants to fall seriously ill or want their loved ones to go through any serious medical conditions. But in case such an unfortunate situation occurs, the last thing you want to think about is piling medical bills which only adds to the stress. In these unexpected and distressing life events, health insurance can prove to be your best friend!

The term "moratorium period" can be a little confusing for some in this health insurance industry. It is a term that may not be as commonly understood as premium, deductible, or coverage. This article talks about the concept of the moratorium period in health insurance. This article aims to explain everything related to the moratorium period in health insurance and other related important information.

Moratorium Period in Health Insurance- The Definition

The moratorium period is the waiting period imposed by the insurance providers during which certain pre-existing medical conditions are not covered. During this period you need to remain free for specific medical conditions or treatments before they can be eligible for the coverage. The duration of this period is been set by the IRDAI which is 8 years.

Purpose of Moratorium Period

The insurance companies issue a moratorium period to prevent the policyholders from purchasing health insurance only when they need immediate coverage for pre-existing conditions. With the enforcement of this moratorium period, the insurer aims to maintain a healthier and more balanced risk pool. This can help them in keeping the premiums manageable for all the policyholders.

Why Does the Moratorium Period Matter?

The Moratorium Period is an essential part because of the following reasons-

How to Navigate the Moratorium Period?

There are a few steps you can take to get to know about the moratorium period against your policy-

Conclusion

A moratorium period is the best alternative method of dealing with pre-existing conditions which does not require you to disclose any medical histories when you opt for the policy. Like everything else in insurance, even a moratorium period has its pros and cons. So it is suggested to read out the policy thoroughly before opting for the policy and moratorium period.

Moratorium Period In Health Insurance: FAQ's

Health Insurance Companies