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Life insurance exclusions and loadings explained

Australian's with dangerous jobs, adrenaline-fueled hobbies or pre-existing medical conditions might have loading or exclusion terms added to a life insurance policy. But what exactly are they?

In certain cases insurance companies will apply a loading or exclusion (also known as revised terms) to a policy. This decision can be the result of a number of factors, including your medical history, if you have a dangerous job, plan to travel to a high-risk destination or participate in a hazardous pastime.

Insurance companies review the information provided in each application using a set of guidelines, called underwriting guidelines. This process determines whether a loading or exclusion will be applied.

If the insurance company applies a loading or exclusion, it is applied to the standard policy, which is outlined by the insurance company in the Product Disclosure Statement or PDS.

In some instances, an application for insurance will be declined if the nature of the risk falls outside of the underwriting guidelines.

When applying for Life Insurance, it is important to disclose any information that might be relevant, so we can work with you to find appropriate cover.

A loading is a percentage increase on the standard premium, usually due to a pre-existing medical condition. These increases are relatively common and ensure that people can obtain cover in situations where they may have previously thought they weren’t eligible. A loading is calculated if there is a higher than average probability that you will make a claim in the future, based on the information in your application.
Exclusions may be applied to your policy if you participate in a hazardous pastime, have a pre-existing medical condition, have high-risk travel intentions, or a hazardous occupation. Exclusions mean that a claim cannot be made as a result of an excluded pre-existing medical condition or from participating in an excluded activity. For example, if you had a sky diving exclusion, you would not be able to make a claim if you were injured, became totally and permanently disabled or passed away while participating in this activity.

Can Loadings or Exclusions Be Reviewed?

Yes, in some instances a loading or exclusion can be reviewed. Please ask your Lifebroker Insurance Consultant if this applies to your circumstances.

Lifebroker's commitment to you

If a loading or exclusion is applied to your policy, Lifebroker has a dedicated team of revised terms specialists that will work to try and find you a favourable outcome from our participating insurance companies so you can enjoy the peace of mind that comes with being protected.

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