It’s official; if you are into base jumping, deep-sea diving or any other extreme sports, chances are that you are going to have a terribly hard time getting life insurance.
A new report from financial services research firm Cannex found that hobbies involving the sea, the sky or the racetrack can either disqualify potential policy holders from getting cover for trauma, total and permanent disablement or death – or at least make it very expensive.
The head of Cannex adviser services, Stephen Mitchell, says an extreme sport participant’s eligibility for cover will depend on how often they participate and the nature of their participation.
“If you are part of a 10-man crew in the Sydney to Hobart yacht race, death and trauma cover are standard, but if you are a lone sailor, trauma cover is out and you will only get death cover if you pay a hefty premium loading,” he says.
“The difference is in perception of risk by the insurer, who would argue that a bigger crew should mean more help at hand in an emergency. There is also the thinking that a yacht requiring such a crew would be more expensive and the crew more likely to be proficient.”
Cannex recently rated all product premiums according to gender and across four common occupation categories; professional, white collar/clerical, light manual/retail and blue collar.
A new report from financial services research firm Cannex found that hobbies involving the sea, the sky or the racetrack can either disqualify potential policy holders from getting cover for trauma, total and permanent disablement or death – or at least make it very expensive.
The head of Cannex adviser services, Stephen Mitchell, says an extreme sport participant’s eligibility for cover will depend on how often they participate and the nature of their participation.
“If you are part of a 10-man crew in the Sydney to Hobart yacht race, death and trauma cover are standard, but if you are a lone sailor, trauma cover is out and you will only get death cover if you pay a hefty premium loading,” he says.
“The difference is in perception of risk by the insurer, who would argue that a bigger crew should mean more help at hand in an emergency. There is also the thinking that a yacht requiring such a crew would be more expensive and the crew more likely to be proficient.”
Cannex recently rated all product premiums according to gender and across four common occupation categories; professional, white collar/clerical, light manual/retail and blue collar.
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