Their impact on your life cover
Certain activities can be dangerous and therefore can impact on the price of your life cover. Taking part in these high risk activities can make it more complicated when applying for life cover. Life insurance companies believe it is more risky for them to take on people who take part in extreme sports due to the danger involved.
Life insurance companies will deal with these high risk activities in two ways. They can decide to charge a higher premium or they may decline the application if they feel like there is too much risk involved. People are often shocked at having to pay more than expected for life insurance due to their hazardous hobbies.
You should disclose any high risk or dangerous activities at the beginning of your application process, even though it may result in your premium being slightly higher. This eliminates the chances of your family not being paid out on your death due to non-disclosure. For example, if you scuba dive regularly and do not disclose this on your application form and you pass away 5 years into the term of the policy in a scuba diving accident, your insurance claim will not be paid out due to non-disclosure.
Usually the insurance provider will supply you with a questionnaire relating to whatever hazardous activity you have disclosed on your application. They may send this out to you along with the application form if you let them know before the application is sent out, which will make the process quicker. The insurance company will then send the questionnaire on to the underwriters, who in turn decide the amount of risk that is involved with your application and make a decision accordingly. It is important to answer all questions honestly and truthfully!
Motorsports is a dangerous sport but has become a favourite for many adrenaline junkies across the country. If you take part in any motorsports you need to disclose this during your application process. The main things the insurance provider will need to find out in the questionnaire are license type, vehicle type, engine size and whether you are a professional or if you take part in events.
2. Scuba Diving
This is the most frequently disclosed pastime. No one wants to rule out the idea of diving in the red sea in the future. If you scuba dive or intend to in the future, then the life company are looking for frequency information, depth information and qualifications you might have. Also scuba instructors would need to disclose how frequently they teach and the dive depths.
The type of diving that you participate in will also play a major role in the risk assessment. Diving deeper than 30m, cave or wreck diving are more dangerous and more risky for the life company to take on, so therefore they may lead to an increased premium. Diving in open water less than 30m in depth is less risky, making it more likely for the life company to accept you at standard terms.
3. Private Aviation
You will need to disclose what aviation qualifications you have. The type of aircraft you fly, license you hold and whether or not you take part in competitions may also impact on the cover decision. The life company will also view helicopter flying differently to light aircraft, so this is something you would need to tell us. If you are pilot on chartered jets then usually they do not see this as something that would effect your premium but everyone's situation can be different depending on what they fly and how frequently.
4. Horse Riding
This activity can also be considered high risk by life companies, depending on what type of horse riding you take part in, for example; dressage, flat racing, hunting, point-to-point etc. The number of events you take part in per year is also an important consideration.
Other activities that may be considered high risk or dangerous by life companies include mountaineering, skiing and other snow sports, sailing and hand gliding. Certain occupations may also affect you when taking out life cover so it is important to also disclose this. High risk occupations include armed forces, mining, fishing industry, oil and gas rig work.
It cannot be stressed enough how important disclosing all information during the application process is. You need to make sure you are properly covered for your lifestyle. By paying a slightly higher premium for your cover, you will have peace of mind that you are fully covered and it will be worth it in the long run should anything happen to you.
For more information, you can give us a call on 01 4003400, where our team will be happy to help with any questions you have about life insurance and extreme sports.