If you are in a position where you have claimed on your insurance, you are most likely wondering “do my insurance premiums get more expensive now that I’ve claimed?”
Unlike other insurances (car, contents, public liability etc.) the premiums for personal insurance when structured correctly do not go up if you have a claim.
WHAT IS A LOADING?
When you apply for any new insurance, the insurance companies assess the level of risk you present as an application (check out this video where I explain further)
The insurance company will come back to you with one of four decisions – accepted at standard rates, accept with a loading, accept with exclusions or decline.
When you are offered a loading, this means that you present a risk higher than the “average” person and therefore will need to pay higher premiums for the same levels of cover.
From the example I gave in this video, the client was offered a loading of anywhere between 75%-225% more than “standard rates”.
As you can imagine, this additional cost often stops you from going ahead with the offer, and we need to explore other options.
HOW DOES THIS HAPPEN
Loadings are applied typically when you have had a previous serious medical event.
The example from the client in the video was since initially taking out his insurance; he was diagnosed with Type 1 Diabetes.
During the application process or your initial engagement with a specialist insurance adviser, the potential of a loading should be discussed and manager correctly.
Properly, handled loadings do not come as such a shock but you could imagine that felt poorly, this could come as quite a surprise.
WHAT YOU CAN DO TO AVOID A LOADING
While not perfect, in this video I have shown you exactly how to get up to $600,000 Life Insurance loading free!
This requires no medical evidence from you
Often your changed health situation means that you are limited in the options you have for your insurance.
Leaving you at the mercy of the incumbent insurance company that you are with.
As with this client, this means you are forced to accept substantial premium increases often feeling trapped.
This option will help you to feel less trapped and provide an option and give you the power of choice back.
SO, WHAT’S THE CATCH?
As I have explained in the video, “there is no such thing as a free lunch”.
To access these benefits, for the first two years the insurance policy is offered with limited terms.
This means, that if you need to claim on the policy in the first two years, any pre-existing medical conditions that would have stopped you from getting cover would mean the insurance company would not pay.
Essentially meaning there is a chance that you would have paid for something you can’t use!
As I joked with the client in the video, if you are not planning on dying in the next two years this is perfect!
All jokes aside, this is something you need to go into with eyes wide open
Having been a specialist insurance adviser for a long time now, I love being able to share some of these insider tips to help get you a better outcome.
I realise that this solution is not perfect nor is it for everyone.
But in saying that, if you have struggled to get cover, this may well be the solution you need and you have been searching for.
Have you struggled with a poor decision from an insurance company when you have applied for cover? Let me know in the comments below and see if I can help you out!