It's ski season! Do you have life insurance?
Whether your ski skills are Olympic or Bridget Jones standard, a holiday on the slopes involves more risk than your typical city break. Before you head off on your adventure, it’s always best to make sure you have everything covered.
Life insurance is something you might not want to think about, but fear not – I can break it down without going too dark on you.
Is life insurance really worth it?
Although it can never ease the pain of losing a loved one, life insurance can provide a financial cushion for those left behind.
What life insurance options are there?
Level Term Life Insurance:
This runs for a certain amount of time e.g. 20 years. If you slip away to pastures green in this time, your insurance company will pay a lump sum to your loved ones. If you live past this period, there’s no payout. A lot of people take out life insurance at the same time as their mortgage, for peace of mind that those left behind won’t be left with lots of debt – makes sense to me.
Whole of Life Insurance:
This is paid monthly, with your loved one receiving a lump sum in the event of your spiritual transcendence. This option is usually pricier than level term insurance. As with any financial decision, don’t be tempted to take out more than you need. Although you’ll want to leave your family with a large amount should the worst happen, remember you still have to be able to afford the monthly repayments while you’re still live and kicking.
You can also consider Increasing or Decreasing Term Life Insurance. With these policies, your payments rise or fall each year depending on your changing circumstances.
There’s also Renewable Term Insurance. With this option, when your policy ends, you can renew your policy without further health checks.
You could also check to see if your employer offers ‘death-in-service’ benefits – this doesn’t mean you have to schedule your death between 9am-5pm, it just means that you are covered if you pass away during your employment with the company.
I don’t want to slip up – what policy do I need?
Due to the risks associated with any extreme sport, you have to notify your life insurance provider if you ski as a hobby, or are planning to start. If you only ski occasionally, say on holiday once a year, you can usually take out a standard life insurance, however, if you are a professional skier you may need to take out specialist cover which will depend on how much time you spend skiing, where you ski and how good you are. I’m great, by the way.
If hurtling down a slippery hill with two planks of wood strapped to your feet is too tame for you, always remember to check that your additional activities are covered by your policy. Particularly dangerous activities such as off-piste skiing or ski-diving (yes, that’s a thing) might not be covered and you might need a more robust policy to get your adrenaline fix.
So there you have it, my little salopettes. May your snow be forever soft, and your skiing adventures safe and fun. If you’d like to read more, slide into my Life Insurance section – wisdom awaits.
Peace and loans,
Published on 7th February 2017