Life insurance for adventure seekers: the fine print on extreme sports
“Over 5.4 million Aussies participate in some form of extreme or adventure sport each year. ”
Whether it’s a high-speed dive into the ocean or a rock climb with no safety gear, the thrill is undeniable. But have you ever thought about how these activities impact your life insurance? Spoiler: they might.
What exactly counts as an
extreme sport?
If you're wondering what exactly counts as an extreme sport, here’s a quick take: Oxford University Dictionary defines it as any sport that involves a high level of danger, usually performed in risky environments where there's a serious chance of injury.
Extreme sports, according to Frontiers in Psychology, involve elements like speed, height, and significant physical exertion, all performed in risky environments. Whether you’re into big wave surfing, skydiving, or even free climbing, these activities are all about pushing boundaries and seeking thrills.
From rock climbing without gear to paragliding, these high-risk activities often come with insurance implications. With so many Australians drawn to these activities, it’s no surprise that insurers treat extreme sports with a bit more caution.
"The perception of risk in extreme sports isn’t just about the activity itself," states Frontiers in Psychology. "It’s also about the unpredictability of the environment." If you’re an extreme sport enthusiast, you need to understand how these risks play into your life insurance plan.
Some of the most dangerous sports may include:
On the flip side, more common sports like rugby, netball, golf, cricket, tennis, cycling, basketball, and running are usually covered by standard insurance—depending on the level of competition you’re playing at.
Will my life insurance cover me?
Life insurance and extreme sports can be a tricky combo. Insurers typically assess risk based on how often and where you engage in high-risk sports. "In Australia, the most popular extreme sports include surfing, snowboarding, and caving," according to Clearinghouse for Sport. Whether you’re taking on the biggest waves or diving deep into underwater caves, these activities can lead to exclusions or higher premiums.
"Extreme sports athletes face higher risks of injury, which can directly impact life insurance policies," highlights Frontiers in Psychology. You might find that some insurers offer cover with conditions, while others refuse to cover certain sports altogether. A pre-assessment can help you understand how your hobbies might affect your premium.
The importance of honesty in your life insurance application
Whether you’re hitting the slopes or paragliding over cliffs, it’s essential to be honest with your insurer about your sporting activities. If you leave out key details and later need to file a claim related to an extreme sport injury, your payout might be denied—or worse, your claim could be completely rejected.
“Being upfront about your extreme sports involvement not only ensures peace of mind but also helps secure the right cover for your lifestyle. ”
Sorting your life insurance? Here’s what to do next
If you’re chasing thrills on the regular, your life insurance policy needs to reflect that. Whether you’re skiing, caving, or even competing in mixed martial arts, make sure to talk with your financial adviser about a policy that supports both your adventurous side and your family’s financial security.
Resources:
Clearinghouse for Sport - Sport Participation in Australia
Frontiers in Psychology - Defining Extreme Sport