Q: Is it common in the Australian market to apply temporary or stepped premium loadings for medical conditions, rather than a flat loading for the entire policy term?

A: Thanks for the question.

Firstly, my response to your questions are my own personal views and not necessarily the views of my employer.

There are different types of premium loadings available, depending on the medical condition. These fall under the headings of percentage loadings and per mille loadings.

Percentage loadings are applied to premium and can remain on the policy for its duration. Policy Owners can request a review of their policy terms at any time (as required by the industry’s code of conduct, known as The Life Insurance Code of Practice).

If there is improvement in the life insured’s medical condition or the condition remains stable, there may be opportunity to reduce or remove the loading entirely. The life insured should also remain compliant with any treatment prescribed.

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