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Extreme Sports: Can They Cause Extreme Premiums or Even Denial of Coverage?

Does your search for that adrenaline rush also affect your life insurance application and premium ratings? Yes, they certainly do.

After all, what are the potential outcomes of extreme sports, no matter how careful you are? Broken or smashed bones, extreme injuries, blindness, paralysis and yes, death. Your participation in extreme sports, in short, increases the risk of your death or for serious injuries that may lead to your death. Thus, your penchant for extreme sports will mean either a high premium rating or you may even be denied coverage.

Extreme sports are referred to as “hazardous avocations” in the insurance industry. These include sports such as motorbike or racecar racing, scuba diving, jumping off planes, rock climbing, yacht racing, skiing, private flying, paragliding or caving.

Some instances that could result in the insurance company declining you coverage include:

  • Scuba diving at depths more than 10 meters, where one is not PADI/NAUI certified and accompanies by a certified diving instructor.
  • Mountaineering over heights of more than 4,500 meters.
  • Any snow skiing or snowboarding unless it is for recreational downhill skiing.
  • Sub aqua pursuits (including scuba diving).

Even if you are issued life assurance coverage, you may have to comply with certain guidelines or exclusions. Otherwise, the death benefit may still be denied your beneficiaries. Or, you may be issued a life assurance coverage with exclusions that include the extreme sports you indulge in. This means that if you die by sickness, your beneficiaries will receive the proceeds but if you die as a direct result of your involvement in extreme sports, your beneficiaries may receive nothing.

You Can Still Get Coverage

There are some insurance companies that specialize in providing life assurance for the extreme sports enthusiast. These are able to make a better assessment of your risk and make better calculations as to how much premiums you should pay. In some cases, they provide more reasonable premium rates than standard life insurance companies.

Full Disclosure

You may be tempted not to disclose the fact that you indulge in extreme sports during the application process. This is always not a good idea. For the first two years of the policy, which is called the contestability period, the insurer reserves the right not only to cancel the policy or to deny any claims related to policy due to the fact that you failed to disclose your extreme sports avocation.

Ways to Get Better Rates

If you are loath to give up your favorite sport, you may continue to do so, within certain limitations. You can even try to get better rates by doing the following:

  • Becoming certified and taking up safety training courses.
  • Becoming equipped with safety equipment and informing your life insurance company about these.
  • Inform your insurance company that you only engage in the sport on a limited basis.
  • Agree to an extreme sports exclusion clause.

To protect your loved ones for less, fill the form on the right to get your life insurance quote.