When someone takes out new cover the risk is assessed medically. If they have a condition that makes them more likely to claim on that product than someone without the condition, they may be offered cover with an exclusion or a loading.
With an exclusion, the cover will be offered but that specific condition is excluded.
With a loading the condition is covered but you pay a higher premium.
Loadings can range depending on the severity of the condition and are listed on the policy for example +50%. This would mean that you pay 50% extra premium of top of the normal premium, ie if the premium was $100 per month, then the loading x 50% is additional $100 + $50 = $150.
If you are offered an exclusion or loading you should make sure what terms other providers in the market would offer, as terms will vary from company to company.
Are exclusions and loadings reviewable? In a lot of cases yes. When you take out insurance the terms offered on the cover are a snap shot of your health at that time. If your condition deteriorates your terms will not change unless you apply for more cover and then the new terms will only apply to the increase. If over time your conditions improves you should be able to have your loading re assessed and possibly lowered or removed. With an exclusion, if you have been treatment and symptom free for a period of time (2-5 years) then your exclusion may be able to be removed.
Your bank will not contact you to have your loading or exclusion reviewed, a good adviser will.
If you have a policy with an exclusion or loading that hasn’t been reviewed please contact us to discuss your options going forward.
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