Loading in Health insurance: Know about it!

renewal between 81- 85 years– 10% of the premium for age band of 76-80 yrs.

Loading for renewal between 86- 90 years– 20% of the premium for age band of 76-80 yrs.

6) No Clear Cut definition: Stay away!

There are many policies which do not have a method of calculating the loading but which mention in the policy wordings that they may load the premium in case of adverse claim experience. This is very dangerous as the loading can be anywhere from 5% to 100% of the premium and the customer can do nothing about it. So if you are buying a policy with such vague conditions, it would be wise to reconsider the decision to buy it.

Max Bupa: A New Approach

Max Bupa is one of the few companies that do not load the premium because of claims. Max Bupa’s CEO Dr. Damien Marmion had said in an interview that they do not want to give the customers the wrong idea that they care more about the money than people by giving discounts for no claim or loading after claims. They have premiums that depend on your age and your locality rather than discounts for claim free years or loading after claims.

What you should look out for?

Now that you have seen most of the methods of Loading, we suggest the following tips:

Ask your health insurance agent or broker about loading before you buy a policy.
Select a policy with a clear method of calculating the loading.