What is Loading in Health Insurance Policy?

In 2022, health insurance is an investment that must not be skipped. While you try to maintain your health in the best possible manner, unpredictable situations may arise, requiring hospitalization. In such times, the backup of a health insurance policy comes to the rescue. A health insurance plan provides a financial safety net to tackle unexpected medical emergencies as well as planned medical procedures. In both situations, a health cover alleviates financial hassles helping you focus on recovery instead. But when buying a health insurance policy, there can be a situation where an incremental premium is levied. This additional premium charged to your policy is called loading. Here’s all you need to know about loading in health insurance and the different factors that affect it. Loading in your insurance premium is the incremental amount that is levied by insurance companies for a ‘risky’ policyholder. This amount is computed over and above the normal premiums to compensate for the increased risk that the insurance company is underwriting. It is generally computed for policyholders that are more prone to a specific ailment than others. To explain loading with an example: Say, Mr. Nikhil and Mr. Rahul purchase identical health insurance plans. Owing to a higher age, Mr. Nikhil is charged a higher premium in comparison to Mr. Rahul. Thus, the increased risk underwritten by the insurance company for Mr. Nikhil is compensated by charging a loading in his premium. *Standard T&C Apply Therefore, if your health requires the insurance company to underwrite some additional risk, a loading is charged in the insurance premium. Considering every person’s health is different, the loading amount will be different for different individuals. The same is true even when buying health insurance plans for family . Since different coverage is required for each family, considering the medical history of the beneficiaries, the loading amount differs.

What are the Different Factors that Affect the Loading Amount?

• Age

One of the primary reasons why premiums may differ is based on the age of the policyholder. As your age increases, the human body is more prone to contracting different ailments, thus, leading to a rise in the overall premiums. *

• Smoking

Nicotine consumption in any form, be it smoking or chewing tobacco is another factor that impacts the loading applied in an insurance plan. While it is a common notion that smokers cannot be extended health insurance coverage, the reality is different. Insurance companies charge a loading to compensate for the increased risk for such individuals. In some cases, the premiums for smokers can be almost double depending upon the frequency of nicotine consumption. *

• Medical History

Lastly, the medical history of a person is a factor that determines the loading amount that is charged by the insurer. For instance, an obese person has a higher probability of suffering ailments like diabetes, heart ailments, or even kidney damage. * *Standard T&C Apply In conclusion, the above points are crucial to keeping in mind when understanding how much loading an insurance company levies. These pointers differ for every individual and hence, the loading amount also differs. When buying a policy, make sure to use a health insurance premium calculator to avoid getting surprised by the loading that is charged in your premium.   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.