Dying To Know

Whilst some people participate in high-risk activities for fun, others do so for their job and main source of income. A high-risk occupation is one where an individual has increased risk of personal injury or death, whilst at work. For example, pilots, scuba diving instructors, rock climbing guides, professional surfers and racing car drivers are considered high-risk occupations. These people can expect to pay much more for their life insurance than an average applicant.

However, good-value term life cover is available. It may be possible for a high-risk applicant to obtain a license to prove that they are safe as a result of experience and training. Commercial airplane pilots are an example of an occupation group that can access average cost life insurance in this way.

Extreme sports include, skiing, hand gliding, mountain climbing, scuba diving, bungee jumping, skydiving and hang-gliding. For a one-off try at one of these sports, such as bungee jumping for a charity fundraiser, an insurer is not going to increase the cost of life cover. However, if the insured checks their life insurance contract they may find that they are not insured against any injury or loss of life that arises from partaking in such an event.

Life insurance applicants who regularly participate in extreme sports for work, pleasure or both have two options.

The first option is to pay more for their policy. The life insurance company will increase their premium by a set ‘extra’ amount, so the applicant can see how much extra they are being charged for the ‘extreme sports’ cover. This extra amount will depend on the risk involved, it is typically double that of an average premium and will increase with the age of the insured. If the insured no longer participates in the extreme sport they are covered for, or does so to a lesser degree, it is important that they contact their insurer, so their premium can be reduced accordingly.

The second option is to purchase life cover for everything except for the extreme sport that is participated in. This would mean for example, if a mountain climber is injured or dies whilst mountain climbing, there would be no pay out. Applicants who take this option may be wise to make other provisions, such as an investment, that could provide for their family in the event of their ‘uncovered’ death or injury.

A good value ‘high risk’ life policy can be found by shopping around and researching. Specialist high-risk insurance providers will be best equipped to offer good value premiums. An applicant may be able to reduce their premium by obtaining a license or extra qualifications.