The terms that matter most: acute means treatable and curable (covered), chronic means long-term (generally not). A moratorium excludes the last five years' conditions until you've had two clear years. Your excess is what you pay per year before the insurer pays. And CPME lets you switch insurer without resetting any of it.
- ✓Acute vs chronic is the single most important distinction: insurance covers what can be cured.
- ✓Moratorium, FMU and CPME are the three underwriting terms that decide what's excluded.
- ✓IPT at 12% is already inside every premium you're quoted — it's not added later.
A–E
- Acute condition. An illness or injury that responds to treatment and is expected to get better — a hernia, a torn ligament, a cataract. Private medical insurance is built to cover acute conditions.
- Benefit-in-kind (BIK). How HMRC treats health insurance paid by your employer: it counts as part of your pay, so you pay income tax on the premium's value, reported via a P11D or payroll.
- Cancer cover. The cancer-specific part of a policy. Comprehensive versions cover licensed cancer drugs (including ones the NHS doesn't routinely fund) without time or money caps; budget versions may cover cancer only to NHS-equivalent levels.
- Chronic condition. A long-term condition that can be managed but not cured — diabetes, asthma, arthritis. Generally excluded from cover, though acute flare-ups of a chronic condition are often covered.
- Consultant. A senior specialist doctor. Policies pay for treatment by consultants the insurer 'recognises' — meaning vetted and fee-agreed.
- Cooling-off period. The first 14 days of a policy (or renewal), during which you can cancel for a full refund provided you haven't claimed.
- CPME (continued personal medical exclusions). A switching basis where a new insurer honours your existing underwriting position, so conditions that arose while you were insured stay covered when you move. The safe way to switch.
- Excess. The amount you pay towards claims before the insurer pays — typically £100–£500, and on most UK policies charged once per policy year rather than per claim. Higher excess, lower premium.
F–M
- Fee-assured consultant. A consultant who has agreed to charge the insurer's standard rates, so you'll never face a 'shortfall' invoice for the difference.
- FMU (full medical underwriting). An underwriting basis where you complete a health questionnaire upfront and the insurer lists your exclusions in writing before you buy. More disclosure upfront; more certainty afterwards.
- Guided referral. A claims basis where your insurer selects the consultant — usually offering two or three panel options — instead of you choosing freely, typically in exchange for a 10–20% lower premium.
- Hospital list. The set of private hospitals your policy covers, tiered by insurer. Budget lists cover regional hospitals; premium lists add central London. Treatment off-list can be declined or part-paid.
- Inpatient. Treatment that requires a hospital bed overnight. Almost always fully covered on any policy — it's the core of the product.
- IPT (insurance premium tax). A 12% government tax on insurance premiums, already included in every health insurance quote you see.
- MHD (medical history disregarded). A group-scheme underwriting basis, typically for larger companies, where all employees are covered regardless of pre-existing conditions. The most generous underwriting there is.
- Moratorium. The most common personal underwriting basis: conditions from the five years before you joined are excluded until you've had two consecutive years without symptoms, treatment, medication or advice for them.
- Musculoskeletal (MSK). Insurer shorthand for bones, joints and muscles — the most-claimed treatment area on UK policies, from physio to hip replacements.
N–R
- NCD (no-claims discount). A premium discount that grows in claim-free years and steps down when you claim. Common on personal policies; one claim can move you several levels.
- Open referral. A GP referral letter naming the specialty needed rather than a specific consultant, letting the insurer direct you to a recognised specialist. Guided policies require it.
- Outpatient. Care that doesn't need a hospital bed — consultations, diagnostic tests, scans, physiotherapy. Where most claims begin.
- Outpatient limit. The annual cap on outpatient cover, commonly £500–£1,500 (or nil, or unlimited). The single biggest hidden difference between similarly priced policies.
- P11D. The HMRC form employers use to report benefits-in-kind such as health insurance, until payrolling of benefits becomes mandatory from April 2027.
- Pre-authorisation. Your insurer's confirmation, before treatment, that a claim will be paid — issued as an authorisation number. Skipping it is the most common avoidable reason claims fail.
- Pre-existing condition. Any condition you had — symptoms, treatment, medication or advice — before the policy started. The thing underwriting exists to define and generally exclude.
- Renewal. The annual repricing of your policy, reflecting age, medical inflation and claims. Double-digit increases are common, which is why comparing at renewal matters.
Compare policies with the jargon translated
S–Z
- Self-pay. Paying for private treatment directly without insurance — a fixed-price package from a hospital. The alternative worth pricing for one-off procedures.
- Shortfall. The gap between what a non-fee-assured consultant charges and what your insurer will pay — billed to you. Avoided by using fee-assured consultants.
- Six-week option. A premium-reducing option where the insurer pays for private treatment only if the NHS wait for it exceeds six weeks. With median NHS waits at 12.4 weeks, you'd still go private for most significant treatment.
- Underwriting. The process by which an insurer decides your terms — what's excluded and at what price — via moratorium, FMU, CPME or MHD.
- Waiting list / RTT. The NHS 'referral to treatment' measure: 7.3 million treatments waiting as of May 2026, median wait 12.4 weeks. The number private cover exists to route around.
If you only internalise a handful, make it these — they're the ones that decide real money at claim time.
| Term | In one line | Where it bites |
|---|---|---|
| Moratorium | Last 5 years excluded until 2 clear years | Claims for anything with recent history |
| Outpatient limit | Annual cap on consultations and scans | The diagnostic stage of every claim |
| Excess | Your share, usually once per year | First claim of each policy year |
| Pre-authorisation | Approval before treatment | Book first, and the claim can fail |
| CPME | Switch insurer, keep your history | Cancelling instead of switching |
| Six-week option | Insurer pays only if NHS wait > 6 weeks | Fast-turnaround NHS specialties |
Why the jargon exists — and how to use this page
None of these terms is decorative. Each one marks a place where policies genuinely differ — and where two quotes at the same price can be very different products. When you're comparing, the jargon is effectively a checklist: what's the underwriting basis, the outpatient limit, the excess structure, the hospital list, the referral basis? Our ten questions guide turns that into a worksheet.
And if a policy document uses a term this page doesn't cover, ask the insurer to define it in writing — 'plain English' explanations are something UK insurers are expected to provide, and the question costs nothing. For how the pieces fit together end to end, start with how health insurance works.
Frequently asked questions
What does moratorium mean in health insurance?
It's the most common underwriting basis for personal policies: conditions from the five years before you joined are excluded until you've gone two consecutive years without symptoms, treatment, medication or advice for them. After two clean years, a previously excluded condition can become covered. No upfront medical questionnaire is needed.
What does CPME stand for in health insurance jargon?
Continued personal medical exclusions — a switching basis where your new insurer honours your existing underwriting position instead of re-underwriting you. Your original exclusions carry over, but conditions that developed while you were insured stay covered. It's the mechanism that makes switching insurer safe for your medical history.
What is the difference between acute and chronic in health insurance?
Acute conditions respond to treatment and are expected to get better — these are what private medical insurance covers. Chronic conditions are long-term and manageable but not curable, like diabetes or asthma, and are generally excluded — though acute flare-ups of a chronic condition are often covered. Most cover disputes sit on this line.
What does outpatient limit mean on a health insurance policy?
It's the annual cap on care that doesn't need a hospital bed — consultations, diagnostic tests, scans and physio. Policies range from nil outpatient cover through caps of £500–£1,500 to unlimited. Because nearly every claim starts with outpatient diagnostics, this limit is the biggest hidden difference between similarly priced policies.
What is a fee-assured consultant and what is a shortfall?
A fee-assured consultant has agreed to charge your insurer's standard rates, so the insurer's payment settles the bill in full. A shortfall is what happens otherwise: a non-fee-assured consultant charges above the insurer's rate and the difference is invoiced to you. Asking 'are you fee-assured with my insurer?' avoids it.
What does MHD mean in group health insurance?
Medical history disregarded — an underwriting basis on larger company schemes where every employee is covered in full regardless of pre-existing conditions. No questionnaires, no moratorium, no exclusions for prior history. It's the most generous underwriting available, and one of the strongest arguments for joining an employer's scheme.
What is IPT on my health insurance premium?
Insurance premium tax — a government tax of 12% charged on most UK insurance, health insurance included. It's already built into every quote and premium you see, not added at checkout. When premiums are compared or increases announced, the figures include IPT unless explicitly stated otherwise.
What does the six-week option mean in health insurance?
It's a premium-reducing option where your insurer pays for private treatment only if the NHS wait for that treatment exceeds six weeks. Given the median NHS wait was 12.4 weeks in May 2026, most significant treatment would still qualify — but you lose private speed on anything the NHS turns around quickly.
What is pre-authorisation in health insurance terms?
It's the insurer's advance confirmation that a claim will be paid, issued as an authorisation number before you book treatment. You obtain it via the claims line or app after getting a referral. Treatment booked without pre-authorisation can be declined even when it would otherwise have been covered — it's the jargon term that most often costs real money.
What's the difference between FMU and moratorium underwriting?
Full medical underwriting (FMU) means completing a health questionnaire upfront, with exclusions listed in writing before you buy — more effort, more certainty. A moratorium skips the questionnaire and applies a rolling rule instead: the last five years' conditions are excluded until two clear years pass. FMU tells you where you stand; moratorium defers the answer to claim time.