If you’re thinking about life insurance, you’re probably thinking about how much it costs. It’s normal to get a quote from several providers during your search. You’ll be trying to keep your premium to a minimum but making sure the features and benefits include what you need.
Basic premiums will be different between providers but are fairly easily compared. However, changes in your premium specific to you depend on a number of risk factors, and each provider may put a different value or weighting on those factors.
Those factors include your health, your age, and whether you smoke but also include your occupation and hobbies.
At Pinnacle Life, if your job is as:
- a helicopter pilot, charter pilot or aerial photographer
- a person handling explosives
- a person working externally more than 15m above ground
- a professional boxer
- a professional hunter
- a professional racing driver
- a professional scuba diver
- a professional stunt person
- a steeplechase jockey
- an underground miner
- an agricultural pilot
- an offshore oil, gas or petroleum worker
or you participate in:
- competitive boxing
- competitive car, bike or powerboat racing
- hang gliding or other self launch flying
- micro-light or ultra-light flying
- mountaineering, outdoor rock climbing or abseiling
- private fixed wing or helicopter flying exceeding 100hrs per year
- scuba diving deeper than 40 meters or any cave or wreck diving
- skydiving or parachuting
- trans-ocean racing
- recreational quad-biking or trail-bike riding
- white water rafting exceeding 80hrs per year
Then we may either ask you to pay a higher premium or exclude that activity from your policy.
A higher premium (sometimes called a loading) is calculated as a percentage of the base premium.
For example, for a job that handles explosives, there is an extra $5 for every $1000 of cover.
‘Sarah works with explosives in her job with the defence force. She is 35, a non-smoker and has no health issues. For $500,000 of life cover, her base premium would be $25.52 per month, but the loading due to her occupation would increase her premium to $216.21 per month. That includes a 10% discount for the first 12 months for applying online.
She cannot get Income Protection with Pinnacle Life because we won’t cover her occupation.
Alternatively, you may be able to choose to exclude an activity or your occupation. from your cover.
For example,
In her spare time, Sarah enjoys rock climbing. She can pay another $75 a month and be covered for rock climbing or choose to exclude it. That would mean if Sarah died in a rock-climbing accident, her policy would not pay out. If she died from anything else, she would still be covered.
It costs more because there are more risks involved. What option you choose is up to you.
Remember that many contributing factors determine your premium. Not smoking, being younger, and having a good medical history will also influence your quote. The best thing to do is get a quote and talk to your preferred provider about your options.
