Why loaded premiums are a thing of the past
In the world of life insurance, there's a practice known as 'loading' premiums that not all customers might be aware of.
As a customer-first life insurance brokerage, we believe in transparency and acting in the best interests of our customers, which is why we’ll never offer loaded premiums to any of our customers.
What is a loaded premium?
Loaded premiums in life insurance are higher premiums charged to you, the policyholder.
But this added extra onto your premium doesn’t benefit you or account for higher risk. Instead, it only secures a higher commission for the brokerage selling the policy.
How it works
As an example, let's say you’re getting a £100,000 policy for a premium of £10 per month. In a loaded premium scenario, the broker might instead charge the customer £11 per month for the same cover that they could get for £10.
This extra £1 a month may not sound like a lot at first but that adds up. This added extra doesn't provide any additional benefits to the policyholder but results in an enhanced commission rate for the broker.
Why we aren’t a part of this
People often view the financial services industry with doubt and suspicion, primarily due to past controversies and practices that seemed to favour the companies over customers.
This has given the industry a somewhat negative reputation, and outdated practices like loaded premiums fit this reputation.
However, it's important to remember that not every company fits this stereotype. Many businesses within this wide-ranging industry are dedicated to acting ethically, being transparent, and serving their customers well.
The impact it could have on you
Loaded premiums could significantly increase the cost of life insurance over time.
These additional costs could instead be invested or saved for the future. If you were to choose the same cover through a broker who doesn’t load premiums, the exact same policy could potentially be obtained at a lower cost.
Think you're a victim of loaded premiums?
If you think you’ve been overcharged for your life insurance policy, or if you’ve been given bad advice, we can help.
We can look at your circumstances and recommend a life insurance policy that’s suited to your needs and most importantly, fits your affordability.
You could get the same policy for less
Loaded premiums raise ethical questions, as it places the broker's interests above those of the customer which goes against all of our values and everything we believe in.
When loaded premiums are in the mix, the customer pays more for no additional benefit. Plus, so many customers aren’t aware that they could get the same policy far cheaper somewhere else.
The importance of life insurance
Life insurance is especially essential for families and homeowners.
It provides a safety net for your loved ones if the worst should happen, and choosing the right policy is a decision that shouldn't be taken lightly. When purchasing life insurance, it's important to understand how it works, including how premiums are calculated and paid. That’s where we come in!
One last note from us
At Caspian Insurance, our ethos is simple. We believe in affordable life insurance policies, demystifying the complexities of life insurance, and educating our customers.
It's essential for our customers to understand what they're paying for when purchasing life insurance. Loaded premiums can lead to unnecessarily high costs. As an ethical broker, we are committed to maintaining transparency and fairness in everything we do which is why we say 'No' to loaded premiums and 'Yes' to affordable, fair, life insurance.
