Extreme sports can be very exciting to many people who seek adventure throughout their lifetime. However, with extreme sports, the probability of physical danger is also extremely high. Such sports carry with them an increased chance of serious injury or even death as a result.
Indeed, it has a great effect on a person’s work life.
A recent study in 2017 revealed that sports injuries caused half a million Australians to take unpaid leave off work, and 178,000 of them had left the workplace. It is wise to consider income protection insurance if your heart is really into sports and you cannot get away from this adrenaline-fueled lifestyle.
Why Consider Income Protection Insurance?
Income protection insurance can put back some of your pay if you suffer a sports injury. However, it is important to remember that your engagement in certain types of sports normally affects your application for income protection. If these dangerous activities increase your chance of claiming, then your insurance provider may set a special provision in your policy through:
- premium loading
- exclusion
- extended waiting period.
Premium Loading
If you are into extreme sports with an increased risk of a claim, you may have to pay for a premium loading. Premium loading can either be a percentage of as much as 25% or a stated dollar amount for every thousand sums you want to insure. Payment for higher premium rates is expected for extreme sports.
An Exclusion Defintion
An exclusion is a limitation placed on a certain condition/event where a benefit will not be paid.
If you have experienced suffering from an injury before, then your insurer will have to consider the following questions:
- What is the nature of your injury and level of severity?
- When did the injury occur?
- How long did it take you to recover?
- Have you continued to participate in this activity?
If your insurance provider finds that there’s a probability you will suffer the same injury, an exclusion may be applied to your policy.
Extended Waiting Period
In some cases, your insurer may seek to have an extended waiting period rather than have an exclusion for your injuries caused by sporting activities. For instance, if you opted for a 30-day waiting period, your insurer may offer you cover but with a 90-day waiting period for an injury experienced whilst you participate in a certain sport. Just because you play sports or have suffered a sporting injury doesn’t mean you can avail yourself of a special provision in your income protection policy. Your insurer may provide standard terms or ordinary rates on your cover if you just suffered from a minor injury or if it happened a long time ago.