When selecting the most suitable Income Protection policy for you, it’s wise to consider how you spend your free time. If you are the sporting type and/or engage in activities which may pose the risk of injury, it’s advisable to opt for an Income Protection policy which covers your out-of-work sports or past-times too.
That’s right, Income Protection will provide cover for non-work related injuries. For this reason, when you take out a policy, you will be asked a series of questions relating to any potential activities, past times or sports that may pose a risk of injury. Sports and past-times that are taken into consideration include the following:
- Rugby, AFL, Soccer, Cricket, Softball, Baseball and Hockey
- Motor and trail bike racing
- Flying, sky diving and Para-gliding
- Base jumping and rock climbing
If you do partake in any of the above listed activities, you will be asked for more detailed information with regards to your level of participation. If the insurer believes your participation poses no or very little risk to your wellbeing, they generally won’t apply any additional rates to your income protection policy. If on the other hand, they deem your risk as high, you will experience a premium loading to help offset the higher risk posed. The third option to avoid any additional loading is to place an exclusion on your sport or past-time. This means that if you were to sustain an injury as a result of participating in your sport or past-time, you will not be able to claim your benefit. If you decide later down the track, to cease participating in the high risk sport or past-time the loading may be removed from your policy.