(MONEY Magazine) – Do the principal officers at your pet investments pilot balloons, a la Richard Branson, the Virgin Atlantic Airlines chairman who keeps trying to circle the globe? Perhaps they sky-dive, raft rapids or fly their own planes. True, not all CEOs venture into thin air, but as extreme sports gain in popularity, increasing numbers of executives are chasing danger, says John Challenger of Challenger Gray & Christmas, a national executive outplacement firm. And shareholders are paying a little something for the boss' indulgences.

Here's why: When an executive plays a central role, his or her company will often purchase "key man" life insurance. About 10% of small businesses invest in such coverage and about half of large ones do. When fashion designer Gianni Versace was murdered, for example, his key-man policy paid out $21 million to his company.

A $1 million key-man policy now costs $10,135 a year for a typical healthy 50-year-old male, according to H&R Phillips Insurance Brokerage, based in New York City. But for thrill seekers, the price rockets by 45% to 270%, depending on the death-defying hobby of choice. That's a similar spike, by the way, to the one heavy smokers face. (Branson's premiums are paid by his private firms, not his publicly traded airline.)

--JUDY FELDMAN