Navigating life insurance: Loadings and exclusions explained
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This sponsored content is brought to you by NobleOak.
When you apply for life insurance*, the insurer looks at various factors to decide what cover it is prepared to offer, and the premium it will charge for that cover. Sometimes, they might charge a higher premium to reflect the additional risk (called a loading), or they might not be able to cover a certain condition or risk (called exclusions). This does not mean you can’t get life insurance* at all, just that you might have to pay a loading or a certain condition is excluded from the cover. These are explained in more detail below:
Loadings: Paying more for higher risk*
Loadings in life insurance* mean you might have to pay more because the insurance company thinks you're riskier to insure. Here are some situations that could lead to loadings in your life insurance*:
Health conditions: If you have pre-existing medical conditions or a history of health problems, the insurer might increase your premium.
Lifestyle: If you have a higher risk lifestyle, for example if you smoke or participate in risky sports, you may be charged higher premiums.
Exclusions: When something isn’t covered*
Exclusions in life insurance* mean that the insurance company won't pay a claim in certain situations. Here are some common exclusions you might encounter:
Suicide: Many life insurance policies have a suicide exclusion, usually for the first two years of the policy. If the insured person takes their life during this time, the policy won't pay a benefit.
Misrepresentation: If you provide false or misleading information during the application process, the insurance company might avoid (cancel from inception) or vary the policy. This may mean your claim is denied.
What it means for you*
It’s important to understand loadings and exclusions in life insurance* so you can make informed decisions before taking out cover.
Paying more: Loadings can make your life insurance premiums higher. If you are in a high-risk category, you may need to be prepared for higher costs.
Limited coverage: Exclusions mean certain situations won't be covered. Make sure you know what is excluded and consider additional coverage if needed.
Risk management: You can actively work towards lowering your risk factors. Things like quitting smoking or increasing your daily step count will ensure you are healthier, which could potentially reduce the impact of loadings on your premiums.
For further information call NobleOak on 1300 041 494 or click here to visit their website*.
Important information – The Target Market Determination for NobleOak’s Premium Life Direct insurance is available on our website www.nobleoak.com.au/target-market-determination.
Legal statements. Premium Life Direct is issued by NobleOak Life Limited ABN 85 087 648 708 AFSL No. 247302. Address: 44 Market Street, Sydney NSW 2000. Phone: 1300 108 490. Email: [email protected]. Cover is available to Australian residents and is subject to acceptance of the application and the terms and conditions set out in the Premium Life Direct Product Disclosure Statement (PDS). This information is of a general nature only and does not take into consideration your individual objectives, financial situation or needs. Before you purchase an insurance product you should carefully consider the PDS to decide if it is right for you. The PDS is available by calling NobleOak on 1300 108 490 or from www.nobleoak.com.au. Clients should not cancel any existing Life Insurance policy until they have been informed in writing that their replacement cover is in place. NobleOak cannot provide you with personal advice but our staff may provide general information about NobleOak Life insurance. Please note any online quotes are indicative only so please contact NobleOak on 1300 108 490 to apply for cover and to verify your actual premium, which will take into account your age, occupation, sum insured, health and pastimes. By supplying your contact details, you are consenting to be contacted by NobleOak, in accordance with NobleOak's Privacy Policy.
*Please note, members, this is a sponsored article. All content of ours that has an asterisk next to it means we may get a commission to write an article or post a deal. We simply do this to assist with the costs of running the SDC. Thank you!
When you apply for life insurance*, the insurer looks at various factors to decide what cover it is prepared to offer, and the premium it will charge for that cover. Sometimes, they might charge a higher premium to reflect the additional risk (called a loading), or they might not be able to cover a certain condition or risk (called exclusions). This does not mean you can’t get life insurance* at all, just that you might have to pay a loading or a certain condition is excluded from the cover. These are explained in more detail below:
Loadings: Paying more for higher risk*
Loadings in life insurance* mean you might have to pay more because the insurance company thinks you're riskier to insure. Here are some situations that could lead to loadings in your life insurance*:
Health conditions: If you have pre-existing medical conditions or a history of health problems, the insurer might increase your premium.
Lifestyle: If you have a higher risk lifestyle, for example if you smoke or participate in risky sports, you may be charged higher premiums.
Exclusions: When something isn’t covered*
Exclusions in life insurance* mean that the insurance company won't pay a claim in certain situations. Here are some common exclusions you might encounter:
Suicide: Many life insurance policies have a suicide exclusion, usually for the first two years of the policy. If the insured person takes their life during this time, the policy won't pay a benefit.
Misrepresentation: If you provide false or misleading information during the application process, the insurance company might avoid (cancel from inception) or vary the policy. This may mean your claim is denied.
What it means for you*
It’s important to understand loadings and exclusions in life insurance* so you can make informed decisions before taking out cover.
Paying more: Loadings can make your life insurance premiums higher. If you are in a high-risk category, you may need to be prepared for higher costs.
Limited coverage: Exclusions mean certain situations won't be covered. Make sure you know what is excluded and consider additional coverage if needed.
Risk management: You can actively work towards lowering your risk factors. Things like quitting smoking or increasing your daily step count will ensure you are healthier, which could potentially reduce the impact of loadings on your premiums.
For further information call NobleOak on 1300 041 494 or click here to visit their website*.
Legal statements. Premium Life Direct is issued by NobleOak Life Limited ABN 85 087 648 708 AFSL No. 247302. Address: 44 Market Street, Sydney NSW 2000. Phone: 1300 108 490. Email: [email protected]. Cover is available to Australian residents and is subject to acceptance of the application and the terms and conditions set out in the Premium Life Direct Product Disclosure Statement (PDS). This information is of a general nature only and does not take into consideration your individual objectives, financial situation or needs. Before you purchase an insurance product you should carefully consider the PDS to decide if it is right for you. The PDS is available by calling NobleOak on 1300 108 490 or from www.nobleoak.com.au. Clients should not cancel any existing Life Insurance policy until they have been informed in writing that their replacement cover is in place. NobleOak cannot provide you with personal advice but our staff may provide general information about NobleOak Life insurance. Please note any online quotes are indicative only so please contact NobleOak on 1300 108 490 to apply for cover and to verify your actual premium, which will take into account your age, occupation, sum insured, health and pastimes. By supplying your contact details, you are consenting to be contacted by NobleOak, in accordance with NobleOak's Privacy Policy.
*Please note, members, this is a sponsored article. All content of ours that has an asterisk next to it means we may get a commission to write an article or post a deal. We simply do this to assist with the costs of running the SDC. Thank you!
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