Life insurance. If you don’t know what it is, then the chances are you don’t need it. But when you do need it the last thing you want is to be lumped into the same category as a stunt driver with an 80-a-day habit just because you climb the odd Severe, or have a trip planned to Island Peak.

It’s not uncommon for climbers, hill walkers and mountaineers to be financially penalised for their activity, simply because the insurers don’t know the difference between the K2 on Hen Cloud and the one in the Himalaya. (One is popular VS lead, the other less so).

And we are not talking pennies here - the loading for ‘dangerous sports’ can as much as double the expense of an already pricey policy. So what can be done? Well, there is one option – head for a specialist company.

Enter Summit Financial Services, Independent Financial Advisers who have developed close relationships with insurance companies who recognise that climbers are responsible individuals enjoying a recognised sport, and who can advise climbers on all the relevant issues. Summit Financial Services work closely with the BMC and have obtained terms with underwriters who understand the needs of climbers. If you are moving house for example they consider that you are taking out life insurance because you are buying a home, not because you are partaking in a ‘dangerous’ sport. Accordingly they are able to offer life insurance with no recreational loading or pastime exclusions in these circumstances (albeit up to certain cover and age limits) and this can mean big savings over ‘high street’ providers.

Of course there are many factors which may influence an underwriting decision, but specific to climbers the underwriter will require information about where you climb, how often, what grade, your experience, and your future intentions. Of all these factors the location of your climbing is probably the most important.

There are many, many reasons for taking out financial protection and it is important that advice is sought from suitably qualified Independent Financial Advisers.

WHAT CAN BE COVERED?

Mortgage Protection:
Normally decreasing cover in line with outstanding mortgage. Liability on a repayment mortgage. Critical illness cover can be added.

Level Term Assurance:
This provides a financial protection for dependants. Critical illness may be added. This cover is for a defined period with a defined sum assured. This cover is often also required for business use.

Critical Illness Cover:
Critical illness cover will pay a lump sum on the diagnosis of a specified illness described in the policy. This could be a serious illness such as a heart attack, cancer, stroke or kidney failure.

Income Protection:
This type of policy would pay regular income in the event of you being unable to work through ill health after a certain chosen period and would continue to be paid until your selected retirement date. The benefit is limited to a proportion of income and should cover financial commitments such as mortgage repayments, car finances and household bills etc. Very few companies will offer this type of cover to include injuries sustained whilst climbing. Cover can be obtained, but will almost certainly be loaded.

WHAT LEVEL OF COVER DO I NEED?
In order to determine an adequate level of cover you ought to calculate your mortgage liability and consider the provision of a lump sum on your death to provide an income in your absence. However benefits available in your employment should be taken into account when making these calculations as should your current assets and wealth, since premiums need to be tempered with affordability. Unfortunately Inheritance tax should also be taken into account. In the current tax year an estate in excess of £250,000 will attract an inheritance tax liability of 40% of the excess, so careful financial planning is required.

What now? 
Summit Financial Services is an appointed representative of Lonsdale Financial Services who are independent financial advisers and regulated by the Financial Services Authority. Contact Summit Financial Services today for a free, no obligation quote:

Summit Financial Services
Phone: 01539 564200
Fax: 015395 64477
email: enquiries@summit.fs.co.uk
www.summit.fs.co.uk

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