Base Jumping life insurance, critical illness cover and income protectionThe facts about getting Base Jumping life insuranceBase Jumping is one of the most extreme and high risk sports you can get involved in. If you are a Base Jumper, getting Life Insurance, Critical Illness or Income Protection could be a worthwhile option to ensure that you are covered to protect yourself, your family, home or business.Base jumping involves a high climb to a manmade structure or tall cliff face before leaping off of it, releasing a parachute on the way down to gently drift back to the ground. Unlike skydiving, Base jumpers don’t use an aircraft. ‘Base’ is actually an acronym for the four types of fixed objects that jumpers can potentially leap from while taking part in the sport, including high rise buildings, antennas, spans (bridges), and the Earth (such as canyons, mountains or other natural locations). Base jumpers always wear a parachute, and sometimes wingsuits which are specially designed to slow their rate of descent while they make specific aerial movements on the way down. After leaping from the tall structure, the jumper’s wingsuit rapidly fills with air, so he or she can glide downwards. Eventually they reach an altitude where it becomes critical to open their parachute, hence the element of risk associated with this sport.What does Base Jumping life insurance cost?There are a number of factors that may be taken into underwriting consideration when you apply for Base Jumping life insurance, including: Number of jumps per year Heights you jump from The locations you jump in (i.e. cities or remote areas) Your experience in Base Jumping If you jump with a club as a member, or alone If you are competing or aiming to set world recordsYour premiums for Base Jumping life insurance will also depend on: Sum assured (£’s) Term of cover (years) Type of policy (e.g. Family, Mortgage, Whole of Life etc.)Base Jumping life insurance rates/ratingsRates for any non-standard cover such as Base Jumping life insurance will vary from one insurance provider to another, depending on their underwriting philosophy. Insurance providers use a risk-based scale to determine the amount you will pay for your cover which uses a ‘percentage loading’ or ‘£’s per mille loading’. All insurance companies have their own underwriting criteria which will also change over time so can be difficult to predict unless you regularly speak to them.Percentage (%) loading for Base Jumping life insuranceA percentage loading basically applies a % to your standard premium based on the levels of risk calculated for your own circumstances. Your percentage loading will apply a multiple to your Base Jumping life insurance premium, which will be based on activities undertaken at the time of your application. You should also know that some insurance providers have different maximum levels to others, so some are prepared to take on higher risks (e.g. 250% or 400%).EXAMPLE:Basic premium% loadingFinal premium£20.0050%£30.00£20.00100%£40.00£20.00150%£50.00£20.00200%£60.00£20.00250%£70.00Per mille loadings for Base Jumping life insuranceYou may also find that a ‘per mille loading’ could be applied to your Base Jumping life insurance premiums, but this is more rare and only tends to be used for those who are considered to be a greater risk. A ‘per mille loading’ will be an additional amount that is applied to your premiums, which is based on the amount of cover you are applying for (e.g. £2 per thousand £’s of cover). The other difference with a ‘per mille loading’ is that it can be applied for the whole term of your Base Jumping life insurance policy, or for a period of time from the start of your policy (e.g. 2, 3, 4 or 5 years).Exclusions for Base Jumping life insurance, critical illness cover or income protectionAnother potential outcome when applying for a non-standard cover such as Base Jumping life insurance, critical illness cover or income protection is for an ‘exclusion’ to be applied to your policy. This means that you may have certain conditions excluded from your policy depending on your level of risk.How much cover do I need?It is difficult to say how much cover you need when you are applying for a Base Jumping life insurance, critical illness cover or income protection policy. There are however some simple rules that you can follow which will give you a good idea for how much cover you need before you apply.NB. You should also be aware that a Base Jumping life insurance, critical illness cover or income protection policy could increase after underwriting to reflect any additional risks of claim, so affordability may be a consideration.The price and availability of Base Jumping life insurance cover will depend on the extent of risky activity, and if you have any medical conditions which might affect you when jumping, or in normal life generally. Increased risk may see a significant loading.Base Jumping life insurance amounts of cover Mortgage amount (£’s) Outstanding debt (e.g. Loans, second charge, credit cards and other) Dependants Spouse or partner Income (after tax) Assets (e.g. car, house, business etc.)Base Jumping critical illness cover amountsCritical illness cover is slightly different to life insurance in the sense that it is designed to provide a lump sum payment if you are diagnosed with a critical or serious illness. Things to consider are: Income (after Tax) Mortgage payments (annual) Cost of living (annual) Any other possible costs (e.g. medical treatment or adaptations)Base Jumping income protection amounts of coverIncome protection is a very flexible product with a lot of options and variables, so you need to consider your own circumstances before you consider this type of policy. If you work, and especially for people who are self-employed, a Base Jumping income protection policy can be a valuable product to give you peace of mind if anything happens to you. Some of the main aspects to consider are: Monthly income (after tax) Mortgage/rent payments Debts (other) Cost of livingYou should be aware that it may not be possible to get a Base Jumping income protection policy depending on any health issues that affect your jumps, or everyday life, or elements of risk. You can speak to a member of our helpful team at iam|INSURED, who will be able to tell you whether you can have this type of cover.What’s the difference between Accidental Death coverage for Base Jumping, and Base Jumping Life Insurance?Accidental death and dismemberment insurance coverage is the opposite of regular life insurance. In the case of Base Jumping, AD&D would only pay out if you died in an accident. Prices for this are generally affordable, but you may need to consider an exclusionary policy in addition to this so you’ll be covered, regardless of the cause of death.If you pass of health-related issues rather than in an accident, or fail to report an accidental death in a fair amount of time, there will be no payout or a partial payout, depending on the issuing company and policy in force.