If you've applied for life or health cover and been quoted more than the standard rate, you've probably come across a loading. It's one of the most common questions we get, and it's often misunderstood. A loading isn't a penalty or a sign you've done something wrong. It's simply how an insurer prices a higher-than-average risk so that cover can still be offered.
A loading, in plain terms
- It's an increase to your premium, usually a percentage above standard.
- It reflects a higher chance of claim, not a judgement about you.
- Often it's what lets the insurer say yes instead of declining.
What a loading actually is
When you apply for cover, the insurer assesses how likely it is to pay a claim. Most applicants are accepted at standard rates. Where the assessment shows an elevated risk, the insurer has a few options: offer cover at the standard price, apply an exclusion for a specific condition, decline the application, or apply a loading. A loading increases your premium to reflect the extra risk you represent, and crucially, it lets the insurer offer cover where some applicants would otherwise be declined. Seen that way, a loading is often what makes cover possible rather than impossible.
What causes a loading
Loadings are driven by anything that raises the statistical chance of a claim, including:
- Medical history, past or current conditions such as heart issues, diabetes, or mental health history, depending on how they're managed.
- Body measurements, some insurers load premiums based on height and weight ratios.
- Smoking and lifestyle factors, tobacco use is one of the most common reasons for higher premiums.
- Family history, a strong family history of certain hereditary conditions can be a factor.
- Occupation, higher-risk jobs can attract a loading, particularly on income protection and disability cover.
- Pastimes, activities such as aviation, diving, or motorsport may be loaded, or sometimes excluded instead.
Two people of the same age can be offered very different terms based on these factors, which is why a quote from one insurer is never the whole picture.
Loading or exclusion?
Insurers often choose between a loading and an exclusion. A loading keeps you covered for everything but at a higher price. An exclusion keeps your premium at standard but removes cover for a specific condition or activity. Neither is automatically better, the right choice depends on what you most want to protect, and it's exactly the kind of trade-off worth talking through before you accept terms.
A loading means the insurer wants to cover you, and has found a fair way to price the risk.
What you can do about a loading
A loading isn't always final. Several practical steps can change the outcome:
- Shop the wider market. Insurers assess risk differently, so a loading with one provider may not apply with another. This is one of the clearest advantages of using a broker.
- Provide more information. Sometimes a loading is applied because the insurer lacks detail. A clear report from your doctor can lead to better terms.
- Improve the underlying factor where possible. For things like smoking or weight, some loadings can be reviewed after a period of change.
- Ask for a review. Many policies allow you to request a reassessment later if your circumstances improve.
The bottom line
A loading means an insurer wants to cover you and has found a fair way to price the risk. The key is making sure the terms you accept are genuinely the best available to you, and that you understand exactly what you're paying for. That's where having someone compare the market on your behalf makes a real difference.
Frequently asked questions
What is a loading on an insurance policy?
A loading is an increase to your premium, usually shown as a percentage above the standard rate, that reflects a higher-than-average risk of claim. It lets the insurer offer cover rather than declining the application.
Why have I been given a loading?
Loadings are driven by anything that raises the chance of a claim, medical history, height and weight ratios, smoking, family history, occupation, or higher-risk pastimes. Two people of the same age can be offered very different terms.
Can a loading be removed or reduced?
Sometimes. Shopping the wider market, providing more medical information, improving the underlying factor, or requesting a later review can all change the outcome. A broker can compare insurers, who each assess risk differently.
This article is general information only and not personalised financial advice. Underwriting outcomes, definitions and conditions vary by insurer. For advice tailored to your situation, speak with a licensed financial adviser.
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