If you work in the mining industry you will probably be aware of the challenges of getting life insurance in such a high risk occupation. Employees in certain high risk sectors, such as underground mining operatives and explosives handlers can find it extremely difficult or even impossible to obtain certain types of insurance, such as total and permanent disability insurance and income protection insurance.
Did you know that your occupation is not the only thing that can affect your ability to take out certain types of insurance? What you do on your days off can also be a factor.
If you like to sit at the pub and watch the cricket it probably won’t affect your risk factors for life insurance (unless you’re a heavy drinker). However, if your hobbies include skydiving or motorcycle riding you could be in trouble when it comes to claiming for income protection or total and permanent disability insurance – many policies exclude cover for injuries that arise from activities considered high risk.
Other high risk activities such as speeding and drink driving can also invalidate your policy and make it difficult to claim certain kinds of insurance. Many policies have a criminal activity exclusion which means that if you are harmed whilst undertaking any illegal activities your insurance claim could be voided. Travelling to a country while a ‘travel warning’ is in place is another common exclusion.
The impact of high-risk personal activities on your ability to claim on your insurance policy is often not discussed when taking out a life insurance plan but it’s important to understand the exclusions. Some insurers do have options for those who engage in high risk activities so it’s all about researching your options, choosing an appropriate insurance policy, and understanding the limitations and exclusions.