Even high-risk clients like Santa can find insurance
After many years - maybe centuries - of nobly serving the world's children in one of the toughest jobs imaginable, Santa has finally found financial insurance through LifeSearch. He now has an Income Protection policy to protect him in case something nasty happens which prevents him from carrying out that most important of tasks on Christmas Eve.
As Santa is a high risk client in a high risk occupation, LifeSearch spoke to specialist Income Protection insurer Pioneer, who needed to consider Santa's individual circumstances before offering him cover. For example:
Santa's job - clambering about on snowy roofs across the globe with (albeit magical) reindeer in tow, followed by a tight squeeze down a chimney is hazardous. Occupations are usually rated class 1 - 4, with 4 deemed the highest risk, whilst working at heights can sometimes be an issue. Neither posed a problem for Pioneer who confirmed Santa would not have to pay extra as a result of his job or the amount of travel he does on Christmas Eve, which they count as an occasional business trip.
Santa's health and Body Mass Index (BMI) - Santa is a portly fellow with a high BMI of over 35, which can, but doesn't always, indicate obesity. As there are no other complicating health issues, Pioneer applied a small loading to his premium. The good news is that Santa has no major health issues.
Santa's lifestyle - although children leave out plenty of sherry for him on Christmas Eve, during the rest of the year, Santa rarely drinks. This means his average alcohol consumption is below the 30 units a week that would raise insurer's eyebrows. He also has no history of substance abuse. Santa does have one vice however; he likes the occasional Cuban cigar. This is not a problem for Pioneer who do not differentiate on premiums between smokers and non-smokers on their Pure Protection policy.
Santa's hobbies - other than an occasional game of Scrabble with the Tooth Fairy, Santa has no hobbies that could lead to an exclusion, such as skydiving (as a one-off this is fine, but as a regular hobby it would be a problem).
For a high risk client like Santa to take out an Income Protection policy, the premium would run at a reasonable £49 a month. Although it would be a pleasure to insure Santa for free!
Matt Morris, LifeSearch Senior Policy Adviser, says, "It is great news that Pioneer managed to find Income Protection for Father Christmas. The self-employed need to be especially wary that they have financial protection if they can no longer work, but the wider public also need to remember that often employer sick pay and government benefits will only offer a limited amount of money for a limited period of time. You need your own policy in place."