Loading is an additional amount that is built into the insurance cost. This amount is added to the premium to provide the cover for a 'risky' individual.
What is loading in life insurance?
What are life insurance premium loadings? A loading fee is a percentage increase in price on standard life insurance premium rates. A loading fee is based on your level of risk (i.e. if there's a higher likelihood of you making a claim in the future due to certain circumstances and situations).
Do loadings increase insurance?
Premium Load — the percentage of insurance premium deducted from the premium payments for universal life insurance policies to cover policy expenses, including the agent's sales commissions.