Participating in sports (even as a hobby) can mean that you’re living a healthy and active lifestyle. But, what about extreme sports? Your health has the biggest impact on your policy and insurers will ask whether you’re involved in any dangerous occupations or hobbies (like extreme sports) to determine your level of risk.

While all sports involve some level of risk, it’s important to disclose whether you are taking part in any activity that could have a significant impact on your life.

Types of Extreme Sports

In 2020 89% of adults in Australia (over the age of 15) participated in sport or physical activity [1]. Some standard sports may be deemed more dangerous than others and have only a  minimal impact on your life insurance application. These types of sports include but are not limited to; rugby, basketball, cricket, netball, running, and cycling. And in some instances participating in sport may act as a reason to lower your insurance premium instead! 

But, when it comes to extreme sports there may be more concern. When applying for life insurance you’ll need to mention whether you have or plan to participate in any activities that are outside of the norm and if they are associated with an increased level of risk.

To get a better understanding of what an extreme sport is, the Oxford University Dictionary defines them as “relating to a sport performed in a hazardous environment and involving great risk”. [2]

Extreme sports are more than often performed at higher speeds, greater heights, and under dangerous circumstances. Using this information and our definition we can then surmise that sports like skydiving, water sports, motorsports, and snow sports could all be considered extreme sports.

As always, make sure you consult your insurer to determine whether any activity or hobby is acceptable or in fact considered an extreme sport.

How Extreme Sports Can Affect Your Coverage

When an insurer assesses the amount of risk you’ll pose they want to know about the types of activities you’re involved in and your level of practical experience.

They may also ask questions about where it takes place, if you undertake the activity alone or in a group, how often the activity occurs, how often you participate in the activity, and whether you’re a member of a recognised professional sporting body.

In some cases, specific extreme sports may not be covered by your insurer whereas others might be, but at an increased premium. Some insurers even offer specialised cover for certain extreme sports.

Sometimes insurance cover can be offered with exclusions. An exclusion allows the insurer to still issue you with insurance cover, and just exclude certain activities and conditions from payment in the event an injury or death occurred as a result of those exclusions. r.

To find out more about exclusions in your policy please consult your Product Disclosure Statement (PDS).

Life Insurance for Extreme Sports

If extreme sports are a part of your lifestyle then they will be a considered factor in the cost of your individual Life Insurance policy. Budget Direct’s Life Insurance is allowing new customers  to receive 1 month’s free cover when they apply for a new Life Insurance policy. And once your policy is issued you’ll only start paying premiums one month after your cover commences.