How to choose the right insurance

What does the term “Loading” mean? Do I need to pay loading upon renewal if I made claims for hospital stay? If the subscription will be adjusted according to age, should I buy medical insurance when I get older?

“Loading” is a term used in the insurance industry referring to the extra charge added to the subscription fee upon renewal due to previous claims made by the subscriber. Some people confuse this term with the yearly increase in subscription based on age or medical costs inflation. In many cases, if an individual made claims frequently, his renewal subscription will be adjusted with loading in addition to the yearly increase. He may find the policy becoming less and less affordable; eventually terminating the policy over time.

However, all Bupa individual health insurance schemes do not charge additional subscription because of claims. Bupa will guarantee your cover can be renewed for life. Bupa does not charge any loading regardless of how many claims were made or changes in your health.

Useful tip:

Although the subscription will be adjusted with age, we encourage people to take out health insurance at an earlier age, while they are still in good health. If an insurance application is made after you became ill, such “pre-existing conditions” will likely be excluded from your cover. If the applicant is suffering from serious illness, such insurance application may be declined. 

Currently, some medical insurance schemes with wider coverage may cover pre-existing conditions in exchange for higher subscription fees. On top of that, recent medical research studies showed that serious illnesses such as heart disease and diabetes are happening at an earlier age. Therefore, it makes financial sense to plan for unexpected medical expenses earlier on in life.