Those of us who like our entertainment in the dangerous category need to be aware that these pursuits may lead to an increase in insurance premiums for policies such as life insurance, critical illness insurance and income protection insurance.
Why are income protection companies nervous about insuring dangerous sport enthusiasts?
Insurance companies set their premiums assuming that each person insured enjoys a fairly normal life with fairly normal risks of illness or accident. Those who enjoy dangerous sports fall outside of this group and have a greater chance of accident due to their love of the adrenaline rush. While it is unusual not to be able to obtain cover, insurance companies will need more information before they agree to take on the risk.
What information will I need to provide if I participate in a dangerous sport?
Each insurance company is different but these are the general questions you will need to answer when applying for income protection insurance.
- type of hazardous activity or sport you participate in
- how often you take part in this pursuit
- the extent and degree of danger
- if you have any qualifications related to the activity or sport (such as a PADI qualification if you go diving)
- where you take part in the activity or sport
- if you participate in competitions
Each of these factors will play a part in assessing the risk involved and whether an insurer will take on this risk and, if so, how much they will charge you.
(image by Danilo Rizzuti - freedigitalphotos.net)