Personal Circumstances

When you apply for life insurance, the insurance provider will ask you several questions to ascertain whether you are at increased likelihood of death or diagnosis with a terminal illness compared with the average risk for your age and gender. In order to calculate this likelihood they will ask you about your state of health and your personal circumstances. Based on your current health and circumstances, the insurance company will determine the cost of your premiums (the monthly payments you make); if you are at increased risk of death or terminal illness you will pay higher premiums than someone who is at lower risk. There are two main aspects of your personal life (aside from your health) that an insurer will take into account when calculating your premiums: high risk occupations and dangerous sports and hobbies.


High Risk Occupations
High risk occupations are those considered to increase the risk of an early death, critical illness or injury. These include oil and gas refinery workers (particularly those working offshore), members of the Armed Forces, fishermen and pilots.

If you are an emergency worker, you should not expect to attract a higher-than-average risk rating exclusively due to your occupation. However, if your work is specialised, for example, you are a police diver or helicopter ambulance pilot, you may be required to pay larger premiums.

Members of the Armed Forces are only excluded from life insurance cover if they are under orders to serve in a dangerous environment at the time of application. This means for example that any policy purchased before being sent into a war zone would still be valid. Critical illness cover may be voided if you are living and working in a war zone, but exclusions will depend on the rules and regulations of your particular life insurance company.

It is of paramount importance that you truthfully answer any questions that your insurance company have when you apply for life insurance, especially those related to your health and occupation. Any subsequent changes to your personal circumstances once you have purchased the insurance policy are less relevant to your insurance provider, but you will need to read the terms and conditions of your policy in case you are required to inform your insurer of changes to your details. Failure to do so could void your policy and prevent your survivors receiving a pay-out when you die.


Dangerous Sports and Hobbies
Dangerous sports and hobbies including aviation, climbing or mountaineering, diving, motor sports and parachuting may affect the cost of your premiums. If you enjoy participating in dangerous sports or have hazardous hobbies, the insurance company will consider the risk that this hobby or sport could adversely affect your health and/or result in an early death. You will not automatically be required to pay higher premiums if you take part in risky activities: years of experience, relevant qualifications and how often you play the sport or practice the hobby will be taken into account when calculating the risk that the activity presents to your health. For example, a commercial charter flight pilot with ten years experience can expect to pay lower premiums than an aviation enthusiast who performs aerobatics and low-level flybys at air shows.

Each insurance provider will have their own rules and regulations regarding the risk that certain sports and hobbies pose for policyholders. Some insurance companies may refuse to insure you if you are involved in activities that in their opinion present an unnecessary risk to your life and health. If for example, you wish to dive with great white sharks who are attracted by meat and blood that is poured into the water around your dive boat, your insurance provider may consider that this is taking an unreasonable risk with your own health and safety. However, you may find insurance companies willing to insure even high risk customers, albeit for higher premiums, or specialist companies who deal exclusively with high risk clients.

Always make sure that you check your life insurance policy carefully so that you know exactly what you are covered for, and remember to inform your insurer of any changes in your lifestyle which could affect the validity of your insurance.