Author Bowtie Team
Updated on 2025-06-05
Disclaimer: This article is translated with the assistance of AI.
Ever wondered why your insurance premium might be higher than a friend’s, even if you’re the same age, gender, and don’t smoke? Dive into the reasons behind varying premiums and why some need extra ‘loading’ fees to get covered—Bowtie’s Dave Hong breaks it all down in this eye-opening guide!
What is ‘Loading’ in Insurance? How Much is Usually Added?
Simply put, after you complete the Underwriting process, the insurance company might decide that your risk level is higher than average. So, while they approve your application in principle, they could require you to pay an “extra premium” (that’s loading) to accept your policy.
As for how much the loading might be, it varies by insurance company and case. It could be as little as 10% to 25%, but sometimes it’s multiplied. If the risk is too high, they might just deny coverage altogether.
Of course, besides adding loading, insurers might also include “exclusions.” If you’re curious about underwriting details and outcomes, check out this article: read here
Why Do Insurance Companies Add Loading?
The main reason insurance companies add loading is to maintain the plan’s “sustainability” . Each insurance plan has its own fund pool, where premiums from policyholders go in. If a policyholder gets sick and needs to claim, the company pays out from that pool.
So, if someone has a higher chance of claiming than others, charging extra makes sense—otherwise, it’s unfair to everyone else. Plus, if the fund stays strained, it could lead to premium hikes for the whole group.
Since different plans attract different policyholders, they each carry unique risks. If one company loads you heavily and it doesn’t sit right, it’s worth shopping around for quotes from others.
4 Reasons for Adding Loading
So, when might you face loading from an insurance company? Here are the key scenarios.
1. Pre-Existing Conditions
Insurance companies typically won’t cover existing diseases, so they might list a high-risk organ as an “exclusion.” But if it’s not clear-cut, they could opt for loading instead.
Some companies are flexible with certain non-serious conditions, like kidney stones. They might still approve coverage even if you have it, but policies vary, so it’s not a one-size-fits-all deal.
2. Family Medical History
Loading isn’t always about your own health report—many insurers ask about your family medical history , like “Has any close relative had a serious illness?” This is because many serious conditions have a genetic component, especially if it’s from direct family. In those cases, loading is likely, and they might even require a medical exam first.
3. Previous Claims
In the past, if you’d claimed for an illness, some insurers might have added premiums or made it an exclusion . But nowadays, plenty of plans—including Bowtie VHIS —state they won’t increase premiums or refuse renewal based on past claims.
But remember, the policyholder has a responsibility to declare all existing diseases during underwriting . If the insurance company discovers during a claim that the insured had a certain disease or related symptoms before purchasing the insurance and it wasn’t declared, it could not only affect the compensation results but also the premiums and renewal.
4. Insurance Renewal
As the insured gets older, the chances of health issues increase. In the past, some insurance companies would require you to answer underwriting questions again during renewal, and after review, you might face a loading. However, this situation is rare nowadays.
According to Health Bureau guidelines , insurance companies can adjust premiums for VHIS customers during renewal, but the adjustment for all customers in the same age and gender group must be identical. This rule prevents unfair treatment of individual persons.
Loading Adjustments: Your Premium Can Go Up or Down!
In fact, loading is a mechanism that can go up or down! If the condition that led to loading during underwriting is treatable without lasting effects—like the kidney stones we mentioned earlier—and it’s successfully treated through surgery, you could request a loading reduction after a year or so.
Of course, it depends on whether your insurance company accepts this approach, and Bowtie regularly reviews policies to see if we can reduce loading or exclusions while still providing the same level of coverage.
For conditions with a higher risk of recurrence or those that are degenerative, the chances of getting a loading reduction are slim to none.
Finally, don’t hide the truth about your medical condition or history just because you’re worried about loading— if you don’t declare your situation accurately, the insurance company can deny claims and cancel your policy upon discovery!
🎀 Bowtie Real Case Study: A customer declared having an ‘Anal Fistula’ when purchasing a policy and was scheduled for surgery, so Bowtie added an exclusion for Anal Fistula at the time. After the customer completed the surgery and fully recovered, they requested a review, and upon investigation, we removed that exclusion .
High Blood Pressure and Loading for Bowtie Customers
Among Bowtie customers, some face loading due to ‘ high blood pressure ‘. High blood pressure can lead to various diseases, meaning insured individuals have a higher chance of making claims, which might require additional premiums.
In Bowtie’s online underwriting system, one of the health-related questions includes an option for ‘high blood pressure’ (except for some products). If you know you have high blood pressure when applying, be sure to report it accurately. If it’s only discovered by Bowtie’s claims team during a claim, we’ll need to conduct a re-review to decide on any loading before processing the claim and keeping the policy active.
However, in the past, patients with certain diseases couldn’t escape being loaded, such as those with VHIS coverage, 95% of G6PD deficiency patients can get insured without any additional loading.
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