Those who choose to really live life on the edge need to make sure they have adequate life insurance coverage as the risk for losing their lives goes up dramatically. One of the biggest aspects that underwriter’s evaluate when choosing to grant coverage is an individual’s career choice and their overall choice of regular hobbies. If an applicant is of greater risk to a carrier, premiums are higher and possibly issued for a certain number of years. An applicant could be subject to review upon renewal. The bottom line is that applicant’s who risk their lives regularly will pay a higher premium than the average person as rates are tailored according the average person.
Term Life Insurance for those with Hazardous Occupations
For some people, regular participation in hazardous activities is not a matter of hobby but is their livelihood. Many people count extreme activities as their primary source of income, such as pilots, aviation or scuba diving instructors or mountain climbing guides. Top professional surfers, race car drivers and motocross riders depend on their thrilling professions to make a living. Unfortunately, all these people can expect higher life insurance premiums.
These professions, however, do not necessarily mean unreasonable term life insurance rates. You can still get affordable coverage if you obtain necessary licenses and take all the classes you can to make you experienced and prove that you are safe. For example, commercial airline pilots are not subject to extra fees. It is best to inquire about a carrier’s necessary requirements so that you can meet them before applying for coverage.
Participants of Extreme Sports
Many thrill seekers like to engage in extreme sports. Some common extreme sports include, skiing, snowboarding, skateboarding, dirt biking, hang gliding, mountain climbing and scuba diving. Other more extreme sports are bungee jumping, parachuting, and hang gliding.
Insurance companies are not “all or nothing” in their regulations. For example, most people do not regularly participate in the more novel extreme activities like bungee jumping and parachuting. Those activities are generally reserved for milestone events such as birthdays or anniversaries. In other words, premiums are not going to be affected by trying something once.
To be fair, most life insurance companies will charge a flat “extra” on your premium to cover the risks incurred for regularly participating in extreme sports and activities. This flat extra will usually double the average rate. As you get older, however, your rates could nearly triple – as age is always a factor in underwriting policies anyway. As you age, most people start slowing down in any regular extreme sport participation. In that case, immediately contact your provider and your rate will drop effective immediately. Another possibility of obtaining cheaper term life insurance is if you asked to be covered for everything except the extreme sport in which you regularly participate. For example, if you regularly scuba dive, you would be covered for any death occurrence except in the case that you die while scuba diving. It seems extremely fair to be covered and paid for everything except the excluded activity you list.
The best way to find the best possible coverage if you regularly participate in extreme sports or activities is to shop around for insurance. Premiums that cover adrenaline junkies can vary significantly between carriers. If you are involved in a relatively new high-risk sport, many companies may not have developed their rate policies for that specific activity. On the other hand, other carriers may be charging way too much since they are one of the few to cover it.
If you love extreme sports or your profession involves putting your life at risk more frequently than most, be sure you shop around and compare rates before buying a life insurance policy. Educate yourself as much as possible about your sport or activity. For instance, if there are licenses you can get, it is wise to obtain them. Take any class you can that will make you more experienced in that activity.
