Disability

Insurance for professionals participating in mountain climbing and extreme sports

No Comments »Written on March 21st, 2012 by jonckie
Categories: Disability, Life
Tags: , , , , , ,

Henk Cronje shows his elation at reaching the Summit of Mont Blanc

As a business owner, husband and father of two, life and disability cover for avid mountain climber Henk Cronjé was a top priority before embarking on his worldwide mountain climbing expeditions, as it should be for anyone who plans to partake in extreme sports.

This is according to John Marsden, National Sales Director at PPS, who says that cover against death or disability, especially when dependents – including family members and employees - are involved, is particularly important for all consumers ahead of the festive season when many people may engage in activities such as paragliding, quad biking or a number of other extreme sports.

Marsden warns however that if your leisure activity is deemed to be a ‘hazardous pursuit’ by your insurer, then some insurance policies may not cover you in the event of an accident because some policies may contain exclusions, for example hazardous pursuits.

Cronjé, a PPS member, was fortunate enough to have automatic hazardous pursuits cover in his life and disability policies which ensured he was covered anywhere in the world, in any eventuality.

“This cover has been highly beneficial during my summit of Mont Blanc (4810m) located France in July 2011; Mount Elbrus (5642m) in Russia in July 2010; Mount Kilimanjaro (5895m) in 2003; and my most recent summit of Aconcagua (6962m) in Argentina, South America on the 19th of January 2012,” says Cronjé.

As a summit attempt can take anything between 15 to 20 hours mountain climbers face a number of challenges and the possibility of negative health side effects or an accident occurring is quite high, says Cronjé.

“As with any high altitude the unpredictability of the weather is the biggest challenge and to get that window of opportunity to summit the mountain is not always possible. Due to low oxygen levels climbers need to control their pace otherwise they can burn out before reaching the summit, therefore, food supplements and liquid intake are essential to combat dehydration and exhaustion.”

According to Cronjé it took him, including acclimatisation, 10 days to summit Mount Elbrus, 7 days to summit Mont Blanc and Aconcagua will take approximately 15 days. “Acclimatization is of utmost importance and that basically means spending time on high altitude which gives your body time to adapt. During the day you will assent to a specific altitude and then decent and sleep at a lower altitude. The risk of an accident occurring increases with every day spent on the mountain.”

“By their very nature, these hazardous pursuits involve a high degree of risk and there is a chance that those engaging in them will get injured or even die. It is simply irresponsible to undertake these activities without being absolutely sure you or your family will be looked after in the event of an accident,” says Marsden.

Marsden says it is vital for consumers to speak to their broker, as most policies require people to apply for the additional cover at an extra premium, which can often prove to be very expensive compared with the cost of an ordinary policy. “It’s not cheap to get coverage for activities that are perceived as hazardous. In fact, some insurers not only automatically exclude coverage for hazardous pursuits, but will also refuse to provide cover against such activities at all.”

Marsden says that PPS members have the peace of mind of knowing that they have comprehensive cover at a far lower premium than many other policies.”

Also view:

How do mountain climbing and extreme sports affect your life insurance?

Versekering moet in plek wees wanneer bergklimmers die hoogste pieke aandurf

Knowing you are covered at the top of Mount Aconcagua

Additional information:

PPS boasts in excess of 200,000 members who enjoy access to a comprehensive suite of financial and healthcare products that are specifically tailored to meet the needs of graduate professionals.

PPS is the largest South African company of its kind that still embraces an ethos of mutuality, which means that it exists solely for the benefit of its members. Thus, members who are policyholders can exclusively share in the profits of PPS Insurance and those who have PPS Investments products can also share in the profits of PPS Investments.

PPS membership provides access to the following tried, tested and trusted products and services: PPS Insurance, PPS Short-Term Insurance, PPS Beneficiaries Trust, PPS Investments and Profmed Medical Scheme. Visit www.pps.co.za for more information.

PPS is an authorised financial services provider.

Sunrise Camp 1 -Mount Aconcacua

What is the best insurance for the mobile businessman and woman?

2 commentsWritten on February 22nd, 2012 by jonckie
Categories: Business, Disability, Finding Insurance, Q&A
Tags: , , , , , , , ,

I am one of these newer generation workforce employees or bosses! With the enhanced internet connectivity we find many more entrepreneurs doing their own thing and working from behind their laptops, tablets and smartphones!

This is found especially amongst the somewhat younger generation and those who have carved a business career doing consulting services!

What are some of the main characteristics of the mobile worker?

-          Overheads are lowered by not buying a business property and having tens of people working for you.

-          You rent a working space and often share working space with other businesses.

-          You meet in coffee shops or travel to the business premises of your clients.

-          You are more focused on technology and rather pay a bit extra to ensure internet connectivity!

What are the major business risks?

This is no environment for the worker who needs an 8am -5pm job with all the extra employee benefits. It is true as some have said you leave your 8hour job to become your own boss so you can work 12 hours a day!

It is most important for the business owner or mobile employee to ensure the safety of business assets and intellectual capital that remains on the move all the time! As the mobile worker might not have the security net of group life and disability cover he should be more focused on ensuring that loved ones are cared for when he is there no more. His vehicle becomes one of his primary assets to ensure and he needs to know everything about car insurance and contents cover.

As the mobile worker is on the internet much of the time, he will use this medium to do research on the best insurance products available and is also more likely to make a purchasing decision on the internet.

Example:

Last week I travelled to Johannesburg for meetings from Wednesday to Friday. For most of the meetings all I needed was to take the iPad along to the boardroom. On Friday morning however I took my laptop into the boardroom at Imperial in Bedfordview and for some unexplainable reason left without the laptop. [yes – there are no pills for stupidity!]

The afternoon, returning to Bloemfontein, the receptionist at Imperial gave me a call and alerted me to having left behind my laptop. I am fortunate that it was well cared for and that it could be returned safely wrapped in bubble wrap etc via courier on Monday!

This however was a very clear warning - and I asked myself the following questions:

-          What if my laptop got stolen or smashed in a car crash?

-          What would I be losing and how long would it take to replace not only the movable asset /laptop, but also to return to full capacity with my work?

-          When last have I made back-up of data and emails on the computer?

-          How can I better protect and insure from potential losses if there is a business interruption?

Insurance Options:

I have browsed through the websites of some of the direct insurers and found insurance cover that could go a long way to ensuring that my business does not suffer all the devastating consequences from mishaps:

Car Insurance Cover: You simply cannot go without having comprehensive insurance if you are a mobile worker! Emergency roadside assistance would be another nice add-on!

Death and Disability Cover: If you have loved ones depending on you it is irresponsible to go without death and disability cover. You might also have colleagues and workers and will need to ensure that the necessary key person insurance is in place. Also talk to an expert on buy-sell agreements etc.

Personal Accident Insurance: If you are on the road often it might be important to consider insurance aimed at covering this specific hazard. Personal Accident Insurance allows you to cover your business partners or employees in case of accidental death or disability, directly caused by an accident. [The death or disability has to occur within 12 months of this injury.]

Remember to also mention items that are normally taken with you (e.g. laptops), etc that will fall under the OUT-of-the-Office section. What about business interruption cover (financial losses that you suffer because you’re unable to do business as usual) and maybe also money cover or stock-in-transit cover?

Business Contents Insurance: It is important to insure not only those items that may remain at a shared office space, but also those items that are normally taken with you (e.g. laptops). At OUTsurance this will fall under the OUT-of-the-Office section. You could also apply for stand-alone cover for your electronic equipment (i.e. licensed software, scanners, printers, audio or visual equipment, or electronic industrial equipment) - you don't need to take out contents insurance first.

Business Interruption Cover: This is described as follows by OUTsurance: “We'll cover financial losses you suffer due to the interruption of your business. The business interruption must be as a result of a loss following a valid claim on your building, contents, electronic equipment or stock.

You can cover financial loss relating to monthly fixed expenses payable; monthly operating profit because of a reduction in turnover; or any additional working expenses incurred.

You can apply for optional comprehensive subsidence cover where you'll receive cover in case of any downward movement of land caused by natural shifts, human activity, volume changes in clay-based soil caused by changes in moisture levels, as well as normal settlement, shrinkage or expansion of soil supporting the structure.

At OUTsurance, you can add optional theft cover to your existing business interruption cover. This means that if you submit a valid theft claim on your existing buildings, contents, stock or electronic equipment cover, you will also be able to claim for additional financial losses caused by the interruption of your business.”

Conclusion:

There are many things we cannot prevent. As we go through challenging financial times there are business risks out of our control. We can however protect ourselves from many other risks and loss threatening our business by considering a variety of insurance products available! Take the time and avoid emergency measures when it is too late!

Also view:

What is this Mobile Workforce and how will it impact on my Insurance Profile?

Professionals are advised to review their PPS insurance policies.

No Comments »Written on December 16th, 2011 by jonckie
Categories: Disability, Life
Tags: , , ,

We would like to share an email on the importance for professionals of reviewing their PPS insurance policies. This alert is credited to Loren le Roux [M.Com (Economics)] from Personal trust.

It is important to review your policy:

(i) Your PPS benefits are linked to your income. The more you earn the more benefits you get back! PPS must be informed of your higher income.
(ii) Do you have group scheme benefits at work ? You could be over- or underinsured.

How can I better understand PPS?

Unlike a company that is listed on a stock exchange, PPS belongs to its members and operates under the ethos of mutuality. This means that is does not offer shares on any public stock exchange and answers only to the professional members it serves. The profits are distributed to its members (policyholders). This is not the case with other providers where the shareholders receive the dividends and not the policyholders!

Questions for existing PPS members:

• When last was your policy reviewed?
• Have you changed jobs?
• Has your income increased? Your PPS benefits are linked to your Gross Professional Income (GPI). Your benefits increase when your GPI increases, but PPS must be informed.
• Do you still require the same cover; i.e. life/death cover, disability & sickness cover, dread disease or accidental death cover?
• Any of the above cover options can be removed or added to your policy.

For new PPS members:

• Professionals who qualify based on their education. PPS has a list of criteria, but a 4-year university degree should qualify. Eligibility can easily be established.
• Self-employed persons should consider life cover, disability & sickness cover & dread disease cover in the absence of an employer’s group scheme benefits.
• Professionals who are in formal employment but need additional cover where their employer’s group scheme benefits are insufficient.

What differentiates PPS from other providers?

Below follows a brief summary of some of the PPS benefits:

1. Other providers ‘aggregate’ permanent disability benefits, i.e. they offset your claims against each other. E.g. you can’t claim 2 x R30,000 from provider A & B, even if you have been paying your premiums to A & B. Provider A may pay 75% or R22,500 and provider B will pay 25% or R7,500.
PPS does not aggregate permanent disability cover with other providers; they use the guidelines of the Life Office Association (now part of ASISA).
2. Other providers ask that you prove loss of income which can be difficult (income protector and/or permanent disability cover).
PPS does not ask for proof.
3. PPS sickness benefit is unique in the market, it can also include hospital cover (optional extra). Sickness benefit: pays from day 1 if you have been sick for 7 or more days, even for influenza. Only a doctor’s certificate is required. The benefit is tax free!
Most other providers will not pay from day 1 if you’ve had influenza for example. You would have to be hospitalised for at least one night. Benefits could be taxable.
4. Most other providers are listed companies and shareholders receive the dividends, not the policyholders. PPS in the only mutual insurance society in South Africa.
PPS members share in the profits of the PPS Group. History has shown that in just seven years, the value can equal the total amount of premiums paid. This is over and above the exceptional risk cover enjoyed at competitive rates.

Happy holidays!

Kind regards

Loren le Roux

M.Com (Economics)

Tel : +27 21 689 8975
Fax : +27 21 686 9093
Web : www.personaltrust.co.za

Email :lleroux@ptrust.co.za

Personal Trust International Limited
P O Box 476 Rondebosch 7701 Cape Town South Africa

You need to be insured before it is too late!!

No Comments »Written on September 29th, 2011 by jonckie
Categories: Disability, Finding Insurance, Medical
Tags: , , ,

In "Pursuit of Happiness" Will Smith says in one special moment "This part of my life..this small part is called happiness..." A friend and regular visitor to this blog shared an email with images under the title "The moment just before the pain begins..."

These images depict sudden unforeseen events that result in severe pain. It is at this brief moment that you might wish that you have paid more attention to your financial and health needs, and especially insurance for life, disability and medical cover!

How do mountain climbing and extreme sports affect your life insurance?

2 commentsWritten on August 10th, 2011 by jonckie
Categories: Disability, Life, Q&A
Tags: , , , , ,

Would you still be covered by your life insurance policy if you participate in extreme sports? Can adrenaline junkies find life and disability insurance cover or would their loves ones be the ones at greatest risk?

This is the questions I had when chatting to a friend of mine, Henk Cronje who is co-owner of Coobah Restaurant in Bloemfontein. We shared a coffee and he expressed his concerns whilst training and preparing to climb Mt Blanc in France. At the time he had already climbed to the summit of Mount Elbrus in Russia [5,642 metres].

To have life and disability insurance in place whilst pursuing his passion of summiting the highest mountains is important not only for him when reflecting on his wife and kids, but also for his business partners and business continuance.

I must admit to being rather impressed with the strict training schedule and dietary guidelines these climbers follow and I could not resist finding more information on the impact that these extreme activities might have on their personal insurance portfolios.

Henk Cronje at the Summit of Mount Elbrus in Russia 5,642 metres

Q&A on extreme sports and life insurance

I raised a few questions and received rather comprehensive feedback from the Life Underwriting Department at OUTsurance. The feedback provides important insights to mountain climbers and other adrenaline junkies participating in a variety of extreme sports!

There is no generic feedback that will be applicable to all mountain climbers but the underwriters have tied to provide as much detail as possible to our mountain climbers.

What are the life and disability Insurance options available to mountain climbers? Would they be able to find cover?

Most climbers should be able to get Life, Disability or Critical Illness cover and doing so really does makes financial sense –

the same way it makes financial sense for anyone who can’t afford the impact of events such as becoming permanently disabled.

Important to consider is who is looking for cover and what risks are they exposing themselves to.

That can differ significantly from one climber to another.

Preparing for the next part of the climb

Risks undertaken may vary

For example some of the factors our underwriters would take into account include (but aren’t limited to):

•             How long the individual has been climbing, so essentially how experienced they are

-              A seasoned veteran climber would be far less likely to be involved in an incident then someone who is totally “green” or inexperienced.

-              Also a seasoned pro should be able to deal with an incident better than someone who has no experience.

-              Experience can mean the difference between a fatal fall and no fall at all.

•             The equipment that they’ll be using

-              Free climbing without ropes is far more dangerous than climbing with rope because it’s more likely that something will go wrong and should something go wrong, it’s probably going to end badly…

-              Another example would the difference between the risk where people climb with or without helmets. Climbing with a helmet is obviously safer.

-              Also, are the climbers climbing with ways to stay in contact with the “outside world”? For example are they climbing with radios or sat-phones so that if something goes wrong they can call for help?

•             The heights involved

-              The higher the climb in absolute terms and/or the higher the average height the more dangerous.

-              Basically the higher the climbs the further there is to fall, all else equal.

•             If the climber is a member of a climbing club or association and how credible that group is

-              Climbers who are associated with well respected climbing clubs/associations are in all likelihood going to have a healthier respect for their sport and follow better climbing practices.

-              They are also more likely to have the right gear and to have prepared adequately.

•             Where the climbing is done

-              The more remote the climbing the less likely there will be easily accessible help.

-              For example if you fall climbing in the Cape you’re probably close to a hospital, but if you fall climbing in Antarctica (as an extreme example) you’re days away from proper medical help. That impacts the likelihood of an incident being fatal or leaving the individual disabled.

•             Whether they are climbing in a group or alone and who all might be part of that group

-              Climbing alone is much more risky than climbing with a component team. If someone climbs on their own and something goes wrong there’s nobody to help…

•             The climbers’ general health

-              There’s a significant difference between two people doing the same climb that are identical in all aspect, but their health.

-              For example someone who’s doing a serious climb is more likely to have an incident if they have severe heart problems than if they did not.

A Climb with a View

Would the cover be a loaded premium or would the extreme sporting activity by excluded?

There may be loadings or exclusions applied, but they would be based on the specific circumstances of the climber.

For example someone doing a solo climb of Everest would probably not get cover, but someone doing recreational climbing in South Africa may well get cover without any loadings or exclusions, but it does vary from case to case.

How does OUTsurance determine what activities are extreme sports? Do you have a list of extreme or dangerous activities?

The activities that are considered extreme or dangerous evolve over time.

For example kite surfing used to be considered extreme, but isn’t looked at so harshly any more.

It all depends on the how an activity impacts on both the frequency and severity of incidents and that is observable from past experience (whether it’s our own or our reinsurance partners).

Is there a difference between climbing Table mountain and the peaks of the highest mountain in France?

Most definitely as outlined above...That said there’s much more to consider than just the height and location.

How important is communication with your insurer and disclosures in this process of requesting life cover

It’s critical. The better the communication the less likely there are to be issues should a claim ever arise.

It’s much better for all involved to make sure the insurer and the insured are on the same page throughout the lifetime of a policy.

It’s also essential that any life assured keeps their insurer abreast of the changes in the activities they partake. For example if they decide to take up base jumping, they must let us know.

Does climbing experience and info on mountains you have climbed count for anything? – Or how regular you undertake these climbs?

Yes it does.

The more experienced a climber and the more “climbing fit they are” the better in terms of risk and that impacts the premiums and the cover that can be made available.

Also view:

Versekering moet in plek wees wanneer bergklimmers die hoogste pieke aandurf

Insurance for professionals participating in mountain climbing and extreme sports

Elation at reaching the Summit of Mont Blanc

A badge does not provide the protection of life and disability cover!!

No Comments »Written on July 7th, 2011 by jonckie
Categories: Disability, Insurance Humour, Life
Tags: , ,

A DEA officer stopped at a ranch in Texas, and talked with an old rancher.

He told the rancher, "I need to inspect your ranch for illegally grown drugs."

The rancher said, "Okay, but don't go in that field over there.....", as he pointed out the location.

The DEA officer verbally exploded saying, "Mister, I have the authority of the Federal Government with me!"

Reaching into his rear pants pocket, he removed his badge and proudly displayed it to the rancher.

"See this badge?! This badge means I am allowed to go wherever I wish.... On any land!!

No questions asked or answers given!! Have I made myself clear......do you understand ?!!"

The rancher nodded politely, apologized, and went about his chores.

A short time later, the old rancher heard loud screams, looked up, and saw the DEA officer running for his life, being chased by the rancher's big Santa Gertrudis bull......
With every step the bull was gaining ground on the officer, and it seemed likely that he'd sure enough get gored before he reached safety. The officer was clearly terrified. The rancher threw down his tools, ran to the fence and yelled at the top of his lungs.....

(I just love this part....)

"Your badge, show him your BADGE........ ! !"

How do I become a paramedic in South Africa?

11 commentsWritten on May 4th, 2011 by jonckie
Categories: Disability, Life, Medical, Paramedics and Emergency Medical Response, Q&A
Tags: , , , , ,

Do you consider becoming a paramedic? Many have raised this question in emails to the Arrive Alive website, and I believe it might be important to raise further awareness on this important occupation. The paramedics are those people who are faced with trauma daily in their efforts to help others in life threatening situations.

Their training, response and professionalism might not only save lives - but will also have an impact on so many medical, disability and life insurance claims.

I have asked Emergency Medical Response specialists and ArriveAlive.co.za website partner ER24 to assist in answering this important question:

Background on Paramedic Courses:

There are currently numerous options on how to become a paramedic.

In order to work on an ambulance you have to have at least BAA (Basic Ambulance Assistant) qualification and be registered with the HPCSA. Over and above the BAA you can later enrol for AEA and CAA/Btech EMC.

There are two ways to become and Advanced Life Support Paramedic, via short courses or the full four year BTech Degree.

You can enrol for BAA at an accredited academy in your area. Once you passed this four week course you have to be active for approximately 1000 hours or six months. From here you can enrol for AEA, which is the next level. This course is approximately four months. Again you have to practise for 1000 hours or six months before you can enrol for the ALS course. The ALS course is one of your most Advanced courses. The course lasts for approximately nine months full time.

You can also take a once-off route to become ALS. The University of Cape Town offers the BTech Emergency Medical Care. This is four years full time. You can enrol straight after school.

You can also have a look at www.hpcsa.co.za and download the protocols of the different levels in order to view their capabilities. Please remember there are other Emergency Courses you can do as well. A fairly new qualification, ECT is also available. Unfortunately the ECT course is not presented by all the academies. The ECT course is two years and you have the option to bridge into the Btech degree once you have passed the ECT course.

We would also like to refer to the following important reading materials:

Criminals might end up testing their own life and disabiliy insurance!!

No Comments »Written on May 3rd, 2011 by jonckie
Categories: Disability, Life, Medical
Tags: , ,

PERTH - An SAS trooper collecting toys for children was stabbed when he helped stop a suspected shoplifter in east Perth.

The 'Toys-R-Us' Store Manager told 'The West Australian' that a man was seen on surveillance cameras last Friday putting a laptop under his jacket at the store.

When confronted, the man became irate, knocked down an employee, pulled a knife and ran toward the door.
Outside were four SAS Troopers collecting toys for the "Toys For Tots" program.

Smith said the Troopers stopped the man, but he stabbed one of them, in the back. The cut did not appear to be severe.

The suspect was transported by ambulance to the Royal Perth Hospital with two broken arms, a broken leg, possible broken ribs, multiple contusions and assorted lacerations including a broken nose and jaw...
Injuries he apparently sustained when he tripped whilst trying to run after the stabbing.

One of the Troopers said, "He was a clumsy bastard."

[ We often find these reports going viral  - and often they are indeed urban legends.]

The lesson however remains - do not test your life and disability insurance by messing with the wrong marine!!

Easter 2011 road fatalities drive home the need for death and disability insurance!

No Comments »Written on April 28th, 2011 by jonckie
Categories: Disability, Life, Medical
Tags: , , , , ,

How many lives have been changed forever during the past Easter weekend?

Unfortunately many lives have not only changed –but also ended during Easter! I would like to quote from a report by the RTMC:

"The Road Traffic Management Corporation (RTMC) has earlier today released the preliminary death toll figures for the Easter 2011 holiday break as obtained from the South African Police Services (SAPS). This period was characterized by heavy traffic volumes along all major arterial routes.

The national preliminary death toll for this past Easter weekend stands at 203 fatal crashes whereby at least 203 people have died. The preliminary provincial break -down for fatal crashes are as follows:

KwaZulu-Natal           43

Gauteng                    32

Limpopo                    30

Mpumalanga              29

Eastern Cape              25

Free State                  17

North West                 11

Northern Cape             9

Western Cape              7

TOTAL                       203

Why so many fatal crashes?

Initial investigations have revealed the following major contributory factors in most of the crashes that have occurred over this Easter weekend:

•        Speeds too high for circumstances, especially during night time and inclement weather;

•        Vehicle fitness, particularly, tyre failure and defective brakes;

•        Dangerous driving such as barrier line and red light infringements and talking/texting while driving;

•        Pedestrian compliance: poor visibility, drinking and walking, jaywalking and walking on freeways."

Road Deaths and the need for Insurance

It is fair to say that nobody should seek benefit from the death of another – but we also need to face the reality – and insurance needs to be brought to the attention of everyone going unto the roads of South Africa!

On the Mining safety website at www.miningsafety.co.za it has been revealed that 128 mineworkers died in South African mines during 2010. It is estimated that each mineworker has about 8 persons depending on that worker. We have no statistics on the average number of people who might depend on those who passed away in the 203 fatal crashes during Easter- but it is fair to say that many will be placed in severe distress after these fatal crashes.

Not only will they have to continue their lives without a loved one - but in many cases  - also have to deal with the loss of a breadwinner. Many would have been left disabled by these crashes and will face not only emotional trauma, but also financial distress.

It is also important to recognize that we can choose a safe occupation, but we cannot avoid the roads. We can improve our driving skills, drive alert and avoid drunk driving – but we cannot avoid sharing the roads with many irresponsible, unlicensed and reckless drivers!

What can we do?

We can do everything from our side to improve our chances of safety on the road. We can avoid late night driving, slow down and follow all the road safety tips from the Arrive Alive website. We can hope and we can pray....

BUT –Perhaps more important – we can prepare for the worst case scenario! We should ask these hard questions:

  • “What if I am the unfortunate innocent, disabled or fatal victim of a road crash?”
  • “In what position would my wife, children or other dependents find themselves?”
  • “Would my business and all the employees survive if I am either disabled or dead?”
  • “Would I be able to continue living a meaningful life if I am disabled, and how much of a financial burden would I be on my family?”

We would like to urge all road users to focus on these questions. We do not wish to have negative thoughts or fear death and disaster around every corner – but not to consider financial planning is reckless, irresponsible and stupid!!

What is regarded as a dangerous occupation for life cover?

No Comments »Written on April 1st, 2011 by jonckie
Categories: Disability, Life, Medical
Tags: , , , , ,

The work that you do has an impact on your risk profile. If you are a fisherman trawling fish in the North Sea or a soldier in Iraq you are far more at risk than the IT manager in a office building. It is only logical that those who are involved in life threatening activities daily, should pay higher insurance premiums for life and disability cover.

What are hazardous occupations for Life cover?

I approached Direct Life Insurer OUTsurance to enquire about dangerous occupations and how they approach the calculation of insurance premiums for these dangerous occupations.

While it seemed simple at the outset, after some discussion with the Life team at OUTsurance it seems that this is not such a simple question. I would like to quote from a response by Trevor Devitt from OUTsurance:

"We do not use a simple and standard table to list hazardous occupations which then leads to a decline in cover. Obviously there are some obvious ones, such as a mercenary. However in writing an article about it you have to consider that the appeal to readers is very limited because of the relatively low numbers of people who fit into the no-go categories.... [I guess it’s like writing an article about tourism in upper Vladivostok. There are only 5 people who want to go there and who may therefore read the article.]"

Extensive range of Occupations

"Our approach is to consider an extensive range of occupations (our occupation table extends to tens of thousands of occupations). We then also consider the details of each one and may still offer cover to a person in a specific occupation which has a dangerous bent.

As an example, if you have an explosives expert, we may decline death and disability cover but offer critical illness cover. We would establish the exact nature of this person’s work in order to do this. If the person is an academic expert or actually works in defusing explosive devices the decisions would differ. Similarly, a person who scuba dives in deep ocean waters as a hobby, or someone whose sole occupation is doing this, different decisions would apply.

As such I can’t offer you a definitive list of absolute declines for occupation categories because the list includes some outlandish occupations which limits the appeal of an article."

Typical High Risk Occupations

The response from OUTsurance highlights an important aspect - it is best to refer to everyday high risk occupations which might result in more expensive premiums, rather that to name the most exclusive high risk occupations such as bomb disposal professionals, high rise building contractors etc.

The New York Times featured an interesting article with data provided by the Department of Labor on the most dangereous jobs in America:

Conclusion and Advice

What do we need to know about life insurance when we are working in a dangerous environment? We would like to advise the following:

  • More attentions should be given to acquiring life insurance when performing dangerous jobs.
  • Gain info from several insurers and enquire whether there are perhaps insurers specializing in providing affordable insurance for your occupation.
  • Your financial needs analysis should focus on death, disability and critical illness cover.
  • Pay attention as well to cover that you might qualify for under your pension fund scheme and whether it might be possible to adjust this cover to benefit from the group cover at lower premiums.

It remains most important to focus on the terms and conditions of your life insurance policy  - and especially the requirement of disclosure. Remember that you need to disclose all the material facts  - and your occupation is a material fact.

Rather disclose too much  - your dependents would prefer to avoid challenging your life insurer in court when you are there no more!!

Also view:

Need life insurance while enjoying the great outdoors?

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