Life insurance and dangerous sports
[social_share]There’s a common misconception that it’s impossible to purchase life insurance if the applicant participates in dangerous sports. While it can be more difficult to obtain a life insurance policy in these circumstances, it is certainly possible, although the premiums may be higher.
A person involved in dangerous sports may seem like a dreadful insurance risk. However, there are several interesting points about these life insurance applicants that offset some of that risk. The first point is that most people involved in dangerous sports retire from participating as they get older. The second is that such applicants usually maintain far higher levels of fitness than average, and so tend to be far healthier than perhaps expected.
The definition of what precisely constitutes a dangerous sport varies from insurer to insurer, and the definitions should be checked in the insurance policy. They normally include activities such as parachuting and hang gliding, but can also include motorcycling and skiing. In many cases the dangerous sport merely needs to be noted and although it may affect the premium, it doesn’t automatically mean the policy won’t be offered.
While some insurance providers do shy away from covering such applicants, there’s almost always a life insurer who will offer a policy to cover these risks. Such policies can usually be found over the internet, but if this doesn’t work then the applicant should visit an insurance broker. Insurance brokers have the training and contacts to deal with non-standard insurance requests, although they must be paid for their time either through a commission added to the product or through an upfront fee.
In many cases life insurance will be offered through dangerous sports associations. These policies will not always be the best on offer, but they will be tailored to the dangerous sports market and they’ll at least serve as a good reference point.
When purchasing life insurance, it’s important not to lie about participating in dangerous sports, as this may either invalidate the insurance, meaning that the money spent is wasted, or limit the pay-out. If a life insurance policy holder is considering taking up a dangerous sport, it’s usually a good idea to talk to the insurance provider. The sport chosen may not be classed as an excluded activity, or it may simply require an extra premium.
