Rock Climbing Questions

In our first Rock Climbers article, we looked at risk and knowledge specialization. In this installment, let's look at the rock climbing questions asked by life insurance underwriters.

Rock Climbing and Prequalification

Once a rock climber decides life insurance is a necessary part of his or her financial planning, the next step is prequalification.

The goal here is to determine the best available price without submitting a formal application. This way, the rock climbing applicant will know the company, the product, and the price — all without risking a declination or a rating (higher premium) due to his or her rock climbing activities.

The prequalification process involves developing a risk profile based on specific rock climbing risk factors about which the carriers are concerned.

Of course, non-rock climbing questions are considered as well, such as current health, medical history, family health history, travel habits, and criminal and motor vehicle records. But let's take a closer look at rock climbing questions, in particular.

(For more info on prequalification, in general, please see "What is prequalification?")

Common Rock Climbing Questions

Here are some of the rock climbing questions that are asked:

1. For how many years have you been climbing?
2. How often do you climb?
3. In which areas do you climb?
4. On what type of terrain do you climb?
5. What is the maximum height to which you climb?

From these questions, the underwriter seeks to understand the individual's unique rock climbing risk factors, in order to most accurately assess that individual's risk and to offer the lowest premium available.

After all, the underwriter wants your business and wants to offer his company's most competitive price that matches your circumstances.

What if my broker doesn't ask rock climbing questions?

If your broker has not asked you these rock climbing questions, then your unique circumstances aren't being considered by the underwriter.

This could work against you, as the underwriter will blindly lump you together with a higher risk group of rock climbers. This translates into a higher premium for you, called a rating.

This is not the fault of the underwriter. Remember, the underwriter is acting responsibly on behalf of his company, as he's safeguarding his company from the unknown financial risk.

If your broker isn't asking you these rock climbing questions, then you should seek a second opinion from another broker.

How should I answer rock climbing questions?

In one word — honestly.

Based on my professional experience, I advise all my clients to be open and honest about their activities. If you try to hide an activity from the insurer, then you are jeopardizing your beneficiary's future security.

For example, let's say we unfortunately lost you within the first two years of your policy. And let's say it wasn't even a rock climbing accident, but something completely unrelated such as a drunk driving accident that wasn't even your fault. The cause of death will not prevent the insurance company from conducting an investigation before paying the claim.

The insurance investigators commonly speak to surviving family members, friends, and coworkers. You can count on them asking about hobbies and other activities. And you can count on some coworker or friend innocently and truthfully answering.

If you didn't fully reveal your rock climbing activities on your application, then the insurer is within its rights to refuse the claim. You've just thrown away your beneficiary's financial security. Please, don't do it.