Loading is often confused with exclusions, but they are not the same. To understand the difference between them, let us first understand what an exclusion is:
Exclusions are situations in which a policyholder keeps paying the same premium (without incurring loading fees) under specific circumstances.
For example, your insurance policy might exclude cancer-related expenses or treatments, or maternity-related expenses, or injuries related to adventure sports. Then, you will not be able to claim these situations.
These days, many insurance companies will offer you a choice between loading or exclusion. It’s your decision to choose the best policy for yourself, either with exclusions or loading in premium.