Snow sports such as skiing and snowboarding are popular with many sports lovers, but they pose a risk of injury to you and others. For instance, if you are involved in an accident with another skier or snowboarder, you may be held liable for their injuries. If you are an adrenaline lover and looking for life insurance to partake in extreme snow sports in Canada, you may find this article helpful.
While it’s admirable that our clients enjoy taking chances and are passionate about their hobbies, we know that they carry concerns with them. They may feel guilty about putting their family in jeopardy just so that you can pursue their passions. A common question we get is “can I get life insurance if I participate in snow sports?”
Yes, you can get life insurance even if you participate in any type of snow sports, regardless of how dangerous they may be. At Protect Your Wealth, we are here for you to help you navigate your options and choose a policy that suits your needs.
Overview of Snow Sports
Snow sports, also known as winter activities, are competitive or non-competitive recreational activities that take place on snow or ice. The majority of them are variations on skiing, ice skating, and sledding. Traditionally, such games were only played in cold climates during the winter, but artificial snow and ice allow for greater flexibility.
Common Types of Canadian Snow Sports
Sledding/Tobogganing – Sledding, sledging, or sleighing is a winter sport typically performed prone or seated on a vehicle.
Snowboarding – Snowboarding, despite its current popularity, is a relatively new sport. Snowboarding is a recreational and competitive sport in which a rider descends a snow-covered surface while standing on a snowboard that is almost always attached to the rider’s feet.
Snowmobiling – A snowmobile is a motorized vehicle designed to travel through snow using skis in front and a drive belt in the back. Snowmobiles are commonly seen in Canada during the winter months as a mode of transportation, for hunting and trapping, and for winter recreation.
Skiing – Skiing is a sport in which skiers with fixed-heel bindings slide down snow-covered hills. It is also known as downhill skiing, though this term encompasses a variety of styles. Alpine skiing is distinguished from free-heel skiing, ski mountaineering, and Nordic skiing, which includes cross-country skiing, ski jumping, and telemark.
Curling – It is one of the more common winter sports on the list, and it is extremely popular here in Canada. It’s a one-of-a-kind team sport in which players slide stones across the ice towards a target area known as a “house” in an attempt to keep them near the center and score the most points. Canada has the most Olympic medals in curling as of the 2018 Winter Olympics.
What Criteria Do Life Insurance Companies Use to Evaluate Risk?
Risk assessment is based on a variety of factors. These include:
- Health status
- Smoking status
- Training in the sport
- License or certificate
- Equipment used
- Other safety precautions
For extreme snow sports participants, the insurer will frequently consider the frequency of participation as well as the level of danger involved. Some people engage in risky winter activities less frequently than others, making it easier for them to qualify for insurance. The severity of the damage and injuries is also important.
Life Insurance for Snow Sports
If you are into snow sports, extreme or not, having the right life insurance should be on your priority list. In the same way that it is essential to dress properly to protect yourself from the cold, having the right insurance coverage is also essential.
Whether you like sledding or skating, here’s an overview of the different types of coverage you could get before you plan your next winter sports adventure.
Fully Underwritten Insurance
To obtain a traditional, fully underwritten policy, you will be required to complete a questionnaire about the snow activity in which you participate, as well as a process to learn more about your ability, experience, and frequency of participation in the sport.
There are advantages to this because, depending on your results, you may be eligible for a preferred or standard rate, and the cost of your life insurance may be lower than that of someone who participates in riskier snow sports than you do. Choosing traditional insurance products can also allow you to have a higher coverage amount and access to different types of life insurance policies with great benefits and features that may better suit your needs and desires.
Fortunately, there are many life insurance companies that offer underwritten policies for those who participate in hazardous activities such as snow sports. As previously stated, there will be some exclusions in certain policies that will raise the cost of your life insurance benefit by a certain amount per $1000 of coverage. Furthermore, while there are underwritten policies that can provide you with a standard or preferred rating, there are some that may simply make your premiums slightly higher than a standard rating, but this will still be very beneficial given that underwritten policies typically provide larger coverage amounts and better features than other policies.
If you participate in a snow sport, it is certainly possible to obtain an affordable traditional policy. Contact us today to learn how!
Guaranteed or No Medical Insurance Policy
Guaranteed or no medical policies can help those who do not want to go through a lengthy questionnaire or medical evaluation, or who are turned down for an underwritten policy. This is ideal for those who participate in riskier snow sports. For example, certain insurance companies will not provide you with underwritten policies if you participate in snow sports in foreign countries.
Keep in mind that many insurance companies will still issue you an underwritten policy even if you engage in an extreme version of snow sports. A no medical or guarantee policy may restrict the amount of coverage available for your policy and may have a slightly higher premium cost, but it is easier to obtain. It is important to note that most no medical exam term life insurance policies provide $500,000 in coverage, whereas no medical exam whole life insurance policies only provide $50,000 or less in coverage. These amounts are significantly lower than those available with a fully underwritten policy. Fortunately, medical and guaranteed life insurance is available from the majority of Canadian insurance companies.
Many life insurance companies offer simplified policies for people who engage in dangerous snow activities. These simplified policies combine features of fully underwritten and guaranteed policies. This is an appealing policy for those who want more features and a higher coverage amount than a no-medical or guaranteed policy, while not requiring a medical exam. These policies will still require you to answer a few medical questions. The amount and features of your coverage can be determined by basic factors such as your health, age, smoking status, and a few others.
What would you do if a senseless injury forced you to take a break from work? If you were temporarily unable to work, adequate disability insurance could assist you in meeting your financial obligations. You could then concentrate on your recovery with confidence.
Disability insurance replaces a portion of your income if you are unable to work for an extended period of time due to illness or injury. It can provide you with tax-free monthly income to help you pay your bills if you are unable to work due to illness or an accident. If you rely on a paycheque, whether full-time, part-time, self-employed, or freelancer, protecting your income stream is one of the best decisions you can make.
Are There Any Exclusions for Life Insurance for Snow Sports?
Yes, for any hazardous activities, there are some exclusions that do exist. The reason that they have these exclusions is because of the fact that there is sometimes too high of a risk if clients take part in an extreme form of their hobby/activity which makes the risk of death much higher than usual.
This does exist for snow sports as well, what people who take part in snow sports need to look out for is: avalanches
If the insurance holder died or was hurt while taking part in a snow sport, such as snowmobiling, cross-country or downhill skiing, snowshoeing, etc., in an area where an avalanche warning with a high or extreme danger level has been posted, then they are excluded from receiving their death benefit.
The number of applicants engaging in activities like hiking, heli-skiing, and snowmobiling in remote locations where avalanches are a possibility has increased, according to underwriters. Although customers might think there is little risk involved, underwriters are aware that avalanche-related deaths do occur in Canada. Thus, you must be wary of avalanche warnings and avoid those places so that you do not risk both your life and your life insurance policy.
Life Insurance Tips for High-Risk Hobbies
Getting life insurance for your high risk hobbies isn’t impossible. Here are some tips for how you can get affordable coverage if you participate in risky activities:
- Be truthful: In your application, be honest about your hobbies. If you fail to disclose your hobby and die while doing it, the life insurance company is unlikely to pay out on your policy.
- Request quotes: Each company has a different preference for your hobbies and other risk factors. The fact that one company quotes you high premiums or denies coverage does not imply that all companies will. Obtaining multiple quotes is the most effective way to ensure you get the best rates.
- Recognize the numbers: The quote from the life insurance company is often divided into two parts: the base premium and the flat extra premium. The base premium is strictly the amount associated with your rating class. The flat extra is a fee added to your base, usually per thousand dollars of coverage.
- Consider the cost: If your hobby severely restricts access to affordable life insurance, you should think about whether it’s worth it.
- Look for high-risk insurance: Several life insurance companies specialize in providing policies to high-risk applicants. Working with an independent agent can help you find companies that are more likely to offer you a low-cost life insurance policy.
Life Insurance for Other Hazardous Hobbies
You can definitely get life insurance if you take part in other hazardous hobbies, there are similar concerns by life insurance companies but we can definitely help you find the right life insurance for your lifestyle.
Hazardous activities come with a lot of risk, which can have a variety of effects on your life insurance. There are some exclusions in life insurance policies that prevent you from receiving a payout if you become disabled as a result of an accident while engaging in a high-risk activity. Additionally, there are exclusions, such as not paying out insurance benefits to your beneficiaries if you pass away while engaging in a risky activity. Even though there are companies that will insure you, you will probably have to pay a higher monthly life insurance premium because these all fall under the underwriting guidelines. Some insurance companies will definitely insure you but will have some clauses that include deducting money from your insurance payout based on the activity you were participating in which caused your death.
These are considered hazardous activities by life insurance companies:
Frequently Asked Questions (FAQs) about life insurance for snow sports
Because your policy is still in effect, the insurer cannot cancel it or raise the premium cost. However, if the snow sport you intend to participate in is not covered by your policy, the insurer will not cover any injuries or death caused by that sport. In this case, we recommend that you review your policy documents to see if there are any exclusions.
Yes! Of course you can get life insurance if you participate in extreme snow sports. There are numerous insurance policies that are tailored to your needs and desires. In spite of the fact that some insurance companies may add exceptions and clauses to your policy, individuals who engage in risky activities or extreme sports can typically obtain a policy with relative ease.
If you have relevant training, licensing, or certificates for your sport, you may be eligible for a premium rate reduction. Good equipment is also taken into account. Furthermore, if you discontinue your activities, you can request a rate reduction from your insurer.
The answer will be determined by the snow sports you participate in. Some insurers will refuse to underwrite all of these. However, there is a chance that they will cover some but not others. Life-threatening activities, or activities at great heights, are typically not covered.
If you are in an accident and injure another skier or snowboarder, they may claim that you were negligent and are to blame for their injury, which could lead to a lengthy legal process. Even if you are not found to be at fault, legal proceedings can be costly. We recommend that you discuss these circumstances with an agent to insure that you are covered in these instances.
Finding the right life insurance plan for you
If you care about the financial security of your loved ones, you should get life insurance. While it’s admirable that you enjoy taking chances and enjoy extreme snow sports, you shouldn’t put your family in jeopardy so that you can pursue your passions. Protect Your Wealth will help you identify and find the coverage you need to create financial stability for you and your loved ones.
To schedule a consultation about your income protection goals, or if you have any questions about insurance in Ontario or Canada, please contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, and Alberta, including areas such as London, Lethbridge, and Coquitlam.