InsuranceFinancial Glossary
Loading (Insurance)
Definition
An additional premium charged by an insurer to cover higher-than-normal risk. Loading is applied when the proposer has pre-existing conditions (medical loading), a hazardous occupation (occupational loading), or adverse lifestyle factors like obesity or tobacco use. Loading can increase premiums by 10-100% above standard rates.
Why It Matters
Receiving a loaded premium offer is not a rejection — it means the insurer is willing to cover you at a higher price. Compare loaded premiums across insurers, as loading percentages vary significantly. Sometimes, a different insurer may not apply loading at all for the same condition.