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Life insurance for dangerous sports

There are a lot of people who cannot imagine a sport without a sweat and a rush of adrenaline caused by the risk taken. A recent study showed which sports are considered being dangerous by insurance companies. Base jumping, scuba diving, cave diving, big wave surfing, street luging, bicycle motocross, heli-skiing, ice climbing, free running, bull riding, high attitude climbing, cheerleading and white water rafting are among most dangerous sports. Some of these sports are so dangerous that they became illegal in some countries. Needless to mention that most life insurance companies will not accept active participant of these sports or will offer a huge rates. However, it is still possible to obtain a life insurance policy for dangerous sports.

Life insurance companies consider people that practice dangerous sports having high risk and as result ask higher premiums. What is more, safety standards can differ in different countries and as a result insurance companies can be exposed to even greater risk. There are two mitigating factors that can alleviate the process of getting a life insurance cover for people that practice active sports. Firstly, these people tend to retire from participating young. Secondly, people involved in dangerous sports usually are in a very good physical condition and lead a healthy lifestyle.

How insurance companies determine what is a dangerous sport

The definitions what is a dangerous sport varies considerably from one insurer to another. However, most insurance providers include skiing, parachuting, motorcycling, mountaineering, aviation and diving. What is more, activities that are considered to be dangerous by the insurance companies evolve over time. For example, kite surfing used to be considered as a very dangerous sport in the past but now this sport does not fall into high-risk sports category. The dangerousness of the sport is determined by looking at the frequency and severity of injuries and deaths caused by these sports.

Reasons for paying higher premiums

Individuals that practice extreme sport will be required to pay a higher premium for two reasons. The first one is the high risk of death or injuries that can occur while practicing these sports. The second reason is special experience by the insurance company that is needed in life insurance underwriting process.

The risk of the sport depends on the experience of the person in that fields and the extent to which the sport is being practiced. For instance, a scuba diving instructor presents a higher risk to the insurance company than a person with a profound experience in scuba diving that practices this sport only twice a year during the holiday. When all the factors are evaluated the risk premiums is calculated. For some sports the risk premiums can be only a couple of extra pounds whereas for others a price can be altered sharply.

Types of policies

The policies fall into two types: single use and annual use. Single use life insurance for dangerous sports is valid only for a short period of time. It is advisable to take this kind of insurance if a person does not actively engage in dangerous sports but occasionally searches for adrenaline while on holiday. For example, it would be expensive and not wise for an individual that goes cave diving once a year to buy life insurance for dangerous sports that is valid every day. He can buy a single life policy for a week every time he goes cave diving. However, for those people who are actively engaged in dangerous sports single life insurance can be an expensive option. Usually these people buy an annual life insurance that can be used all year round.

Important details to remember

Some insurance companies may ask the individual to present them an accreditation from relevant bodies as a proof that a person is qualified enough to engage in a dangerous sport. What is more, it is important to notify the insurance company about any changes in the dangerous hobbies. For instance, if a person has insurance for skiing and decided to try heli-skiing he needs to notify his insurance company about that. Changes in the frequency and locations where dangerous sports are being practiced also have to be noted in order to adapt the loaded premiums to changes in the inherent risk.
Life insurance for dangerous sports can also have additional benefits. 24 hours protection for all personal accidents can be included. What is more, the insurance can be extended to protect the equipment used while engaging in the sport. Permanent disability and terminal illness benefits can also be attached.

For those people that are not able to find the insurance company with a satisfactory quotes in the market it is advisable to contact the associations of the particular sport.  These associations have knowledge in the insurance because they insure the lives of their members. What is more, very often they get competitive quotes from insurance carriers and have the experience about the process of making a claim or renewing an insurance contract. As a result, they are able to advise which insurance provider is the best.