Are you the picture of health? Do you naturally manage to take regular exercise even during your most hectic weeks simply because you love to do it, rather than feeling you ought to? Is working out or playing a team sport a pleasure (even if you lose)? Is a healthy diet and moderate drinking for you just a natural way of life?
If you’ve answered yes to these questions, life insurance providers are likely to smile when reading your policy application.
However, while regular exercise and a healthy lifestyle may help score you points when it comes to banking the lowest life insurance premium, thrill seekers who love to hurl themselves out of planes, crawl through underground tunnels or dangle from rock faces might be in for a surprise.
The trouble is that there’s sometimes a fine line – or in some cases a wide gaping abyss – between sports that keep your heart pumping, thus helping to prolong your life, and those that potentially present a clear danger. Motor sports, hang-gliding, mountain climbing, and even skiing or snowboarding are just a few of the extreme sports which could fall into the latter camp, depending on the insurer.
Life insurance policies
If you’re hooked on an extreme sport, or any activity which insurers might classify as a ‘hazardous avocation’, you might find that it costs you more, or even that you are unable to take out a standard life insurance policy. When you apply for life insurance you must provide details of any potentially hazardous activities you do. The insurance company’s underwriting team will then decide whether to grant the policy on standard terms, increase the premium because of the higher risk, or decline the application altogether.
Your level of experience and the extent to which you participate in the extreme sport will be taken into account. You may well be able to find adequate life insurance cover, although be prepared to pay an additional premium if your sport is deemed particularly risky.
It’s also worth shopping around and comparing quotes from different life insurance providers to make sure you get the best deal – and the best level of cover for your particular circumstances. Just be careful to read the small print, terms, conditions and details of any exclusions to ensure that your favoured high-adrenalin fix is definitely covered.
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