The thrill of participating in extreme sports and the exciting rush you get from the potential risk is a feeling like no other. However, there’s also no denying that taking part in dangerous activities also affects the important things in life; like life insurance.
Whilst you are not being discouraged to stop doing what you love, your premiums could be more expensive, or it could be more difficult to secure certain policies if you take part in extreme sports. In this 2023 guide written by expert life insurance broker, Reassured, you can explore the options available to help find an affordable policy.
Will extreme sports affect my life insurance?
Most likely, yes. Depending on what it is and how high risk the insurer sees the sport to be. Life insurance for extreme sports enthusiasts is usually more expensive due to the additional risk to life and the increased likelihood of a claim being made during the policy term.
For example, if your sport of choice is extremely dangerous then this could have a larger impact on your life insurance premiums.
Extreme sports that can affect life insurance include:
- Base jumping
- Heli-skiing
- Cave diving
- Big wave surfing
- Mountaineering
- Solo climbing
- Wingsuit Flying
- Free diving
- High lining
How much does life insurance cost if you’re an extreme sport enthusiast?
When you apply for life insurance, many factors about your life are taken into account for insurers to calculate the cost of your policy, for example:
- Age
- BMI
- Smoking status
- Occupation
- Medical history
- Your lifestyle/ hobbies
As well as this, the risk associated with your extreme sport will also be included as a factor.
The cost of your life insurance will also depend on your desired sum assured, policy type and the length of time you want cover for.
That will be down to what you are looking to cover. Many people take out a policy to help with costs for:
- Funeral costs
- Mortgage/ rent payments
- A small inheritance
- Childcare/ future education
- Outstanding depts
- Replacing an income
What will I be asked when applying?
When applying for life insurance you will be asked a variety of questions about your health and lifestyle. If you regularly take part in an extreme sport, the insurer may ask further questions to gain a greater understanding of your lifestyle. For example:
- Where do you take part in the extreme sport (a set venue/ location/ setting)
- What height and depths do you go to (if applicable – e.g. climbing/diving)
- How often do you take part (is it regular/ what’s your level of experience)
- If you have any qualifications relevant to the sport
When filling out the application form, it is important to be open and honest on all questions asked. If you aren’t, this is known as non-disclosure and will cause issues for your loved ones when they need to make a claim.
When searching for quotes, it is important to be open at all times; not only on your extreme sport endeavours, but also medical history, smoking status etc, to an agent/ broker is highly important as this can also help them find you a policy suitable to your circumstances.
What if I am declined a policy due to extreme sports?
If you’ve been declined and you’re worried that you aren’t able to secure life insurance due to being high risk/ your history of a declined policy, do not worry as this doesn’t mean you are out of options.
Just because one insurer has not accepted your application, does not mean it will be the same for others. All insurers have different underwriting processes (how they measure each risk). Which means your chosen sport my not be as high risk with an alternative insurer.
As well as this, there are also specialist insurers who help those who’ve struggled in the past to secure a form of cover due to a variety of reasons. They can provide policies designed for applicants who take part in dangerous sports, if you’ve struggled to secure standard types of life insurance previously.
If you are aged between 50-85, you may want to consider the route of an over 50s life insurance policy. Over 50s offer:
- Guaranteed acceptance
- No questions regarding health or lifestyle
- A guaranteed pay out to loved ones
This is a good option for those looking for a smaller pay out to help with funeral costs or a small inheritance for friends and family.
Finding affordable cover
Adrenaline-junkies and extreme sportspeople who want to financially protect their family should the worst happen, there is a strong chance of an affordable policy option.
Different insurers have different policies and cater for a variety of needs. Making sure to shop around for different quotes is one of the most effective ways to find a good deal. A few ways of doing this is:
- Using a life insurance broker
- Going directly to an insurer
- Comparison websites
It is also important to check all the terms of a policy when finding a reasonable price, as although highly unlikely, there could be certain exclusions on the policy linked to your lifestyle.
If your lifestyle changes and you give up your ‘daredevil’ lifestyle in the future while your policy is still in place, then you could get in contact with your insurer and get quotes for a new policy.
