Navigating life insurance
Some situations in life could lead to increased loadings for life insurance. NobleOak explain life insurance loadings and exclusions.
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Key points
- Loadings in life insurance mean you might have to pay more because the insurance company thinks you’re riskier to insure.
- It’s important to understand loadings and exclusions in life insurance so you can make informed decisions before taking out cover.
- Need further information? Call NobleOak on 1300 041 494 or visit www.nobleoak.com.au/nationalseniors
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, the insurer might charge a higher premium to reflect the additional risk (called a loading), or it might not be able to cover a certain condition or risk (called an exclusion).
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 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 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 void (cancel from inception) or vary the policy. This may mean your claim is denied.
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 visit www.nobleoak.com.au/nationalseniors.
Important notice - National Seniors is a marketing partner with NobleOak Life. We present factual information only about NobleOak’s products. We do not provide any financial advice or services. Any financial advice in this material is general advice only, from NobleOak Life Ltd AFSL 247302. Always consider your own situation, and the PDS and TMD provided by NobleOak.
My Protection Plan is issued by NobleOak Life Limited ABN 85 087 648 708 AFSL No. 247 302. Address: 44 Market Street, Sydney NSW 2000. Phone: 1300 041 494. Email: sales@nobleoak.com.au. Cover is available to Australian residents and is subject to the terms and conditions of the My Protection Plan Product Disclosure Statement (PDS). The information on this website is of a general nature only and does not take into consideration your individual objectives, financial situation or needs. Please also read the NobleOak Financial Services Guide and the Target Market Determination (TMD). Before you purchase an insurance product you should carefully consider the PDS to decide if it is right for you. People who seek to replace an existing Life insurance policy should consider their circumstances including continuing the existing cover until the replacement policy is issued and cover confirmed. NobleOak cannot provide you with personal advice but our staff may provide general information about NobleOak Life insurance. By supplying your contact details, you are consenting to be contacted by NobleOak, in accordance with the NobleOak Privacy Policy.
Remuneration disclosure - National Seniors receives on ongoing fee from NobleOak equivalent to 12.5% of premiums (and Member Solutions Pty Ltd receives 5.5% for its role as programme design consultant) for insurance cover acquired as a result of the marketing arrangement; this is at no additional cost to customers.
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