If you've applied for cover and received an offer with special acceptance terms, one of those terms might be a premium loading, an extra charge on top of the insurer's standard rate. Loadings aren't unusual, and they're not a rejection. They're how an insurer says yes to cover when the standard price doesn't quite fit the risk. The detail that trips people up is that loadings come in two different forms, calculated in completely different ways.
Two types of loading
- Percentage loading, a % added on top of your demographic's standard premium.
- Per-mille loading, a fixed dollar amount per $1,000 of cover you hold.
- Both reflect higher claim risk, but they're used in different situations.
Percentage loadings
The most common type. The insurer assesses how much extra risk you represent compared to someone of your age, gender, smoking status and occupation, then applies a percentage on top of the standard premium for that group. Loadings in practice often range from around 50% to 400%, depending on the condition and how it's managed.
Percentage loadings tend to be used when a condition can't be singled out with an exclusion, because it affects your overall health picture. Examples include diabetes, high blood pressure, or a strong family history of certain cancers.
| Step | Example |
|---|---|
| Standard premium for your demographic | $100 per month |
| Loading offered | +50% |
| Your adjusted premium | $150 per month |
In that example, you've been assessed as roughly 50% more likely to claim than peers without the same health factors. The loading prices that extra risk, and keeps you covered for everything, not just a narrow slice of your health.
Per-mille loadings
Per mille means for every one thousand dollars of cover. Instead of tweaking your demographic rate, the insurer adds a flat dollar amount per $1,000 insured. Everyone with the same loading pays the same extra amount per unit of cover, regardless of age, gender, occupation or smoking status.
| Cover amount | Per-mille loading | Extra premium per year |
|---|---|---|
| $100,000 | $10 per mille | $1,000 |
| $250,000 | $5 per mille | $1,250 |
Per-mille loadings are typically used in two situations:
- Dangerous occupations or pastimes, where the added risk comes from what you do, not your health profile.
- Time-limited cancer loadings, where someone is in remission and the risk of recurrence falls each year they stay clear. The loading may apply for a set period, say three years at $5 per mille, then drop off automatically.
Percentage loadings follow your health profile. Per-mille loadings follow your cover amount, or your hazard exposure.
Loading or exclusion?
Insurers don't always choose a loading. Sometimes they'll exclude a specific condition or activity instead, keeping your base premium at standard. A loading keeps broader cover at a higher price. An exclusion narrows what's covered. Which is better depends on what you most need protection for, and it's worth weighing both before you accept terms. Our separate guide on what loadings are covers that trade-off in more detail.
Can loadings be reviewed or removed?
Most special terms, apart from some time-limited per-mille loadings on cancer, can be reviewed at any time. If your health has improved, you've left a high-risk job, or you've stopped a hazardous hobby, it's worth asking. But the insurer will only reduce or remove a loading if they agree your overall claim risk has genuinely fallen, a review isn't a guarantee.
Reviewing percentage loadings
Because percentage loadings reflect your whole health picture, an improvement in the original condition alone may not be enough. The insurer looks at your current overall health profile and whether your future claim risk has actually dropped. If it has, the loading may be reduced or removed entirely.
Reviewing per-mille loadings
For occupation or pastime loadings, the review is more straightforward. If you can show you've left the risky job or dropped the hobby, the per-mille loading is typically removed, regardless of your wider health profile. Time-limited cancer loadings often expire on their own once the agreed period ends.
Reviews are risk-free
- Requesting a review cannot increase your existing loading.
- Even if your health has deteriorated since the loading was first applied, your current terms stay as they are.
- If you think your risk has improved, asking costs you nothing.
What to do if you've been offered a loading
Don't assume the first offer is the only one available. Insurers assess risk differently, a loading with one provider may not apply with another. Providing clearer medical evidence, improving a manageable factor like smoking status, or simply shopping the wider market can all change the outcome. A broker compares terms across insurers and can help you request a review with the right supporting information.
Frequently asked questions
What is a percentage loading on insurance?
A percentage loading increases your premium by a set percentage above the standard rate for your age, gender, smoking status and occupation. It's typically used when a health condition affects your overall wellbeing and can't be singled out with an exclusion.
What is a per-mille loading?
A per-mille loading adds a fixed dollar amount for every $1,000 of cover you hold, regardless of your demographic premium rate. It's commonly used for dangerous occupations or pastimes, or for a time-limited loading after certain cancers while remission continues.
Can I ask my insurer to remove a loading?
Yes, and requesting a review carries no risk. Your existing loading can't be increased on review. Insurers will only reduce or remove a loading if there's enough evidence that your overall claim risk has genuinely fallen.
This article is general information only and not personalised financial advice. Underwriting outcomes, loading calculations and review criteria vary by insurer. For advice tailored to your situation, speak with a licensed financial adviser.
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