People who frequently partake in hazardous activities, whether for work or for pleasure, are underwritten at a greater rate by most, if not all, insurance companies.
What is a hazardous activity? A hazardous activity is anything that a life insurance company could deem high risk. It could include any of the following: rock and mountain climbing, skydiving, hang gliding, bungee jumping, go-kart racing, motorcycle racing, mountain biking, snowmobile riding, ice climbing, cave exploring, riding horses competitively, scuba and deep sea diving, white water rafting or canoeing, sail boarding, sailing, dog sledding, ballooning, downhill ski racing, and ATV riding.
Thankfully, most insurance companies still have options for the more adventerous types, and getting the best rate on your policy premiums takes some shopping around. Luckily, our agents know which insurance company offers the best rates for your particular activity.
We suggest you have a look through our archive of articles for people who partake in hazardous activities, and read the one which best applies to you.
Life Insurance for Skydivers – If you’re a skydiver in search of life insurance, then everything you need to know is contained in this article.
Life Insurance for Scuba Divers – While scuba diving is less dangerous than other extreme sports, there are some special things to keep in mind for scuba divers looking for life insurance. Find out everything you need to know here.
Life Insurance and Hazardous Activities
If hazardous activities are a regular part of your life, then many people believe automatically that life insurance wouldn’t be available for you. Take a skydiver for example. It’s a reasonable assumption that very few life insurance companies would want to take on the risk to insure a skydiver. Skydivers jump out of planes on a regular basis, which is something that could result in a deadly accident.
Fortunately for the types of people who are regularly involved with those kinds of hazardous activities, the situation can be a lot more favorable for them. Just because they undertake hazardous activities doesn’t mean they are automatically disqualified from obtaining life insurance.
Depending on the activity, and how hazardous it is, the life insurance companies have a system for assessing risk. Let’s use skydivers as an examples again. The more often you dive, the higher your rates are going to be. This is applied to their life insurance in terms of a flat rate. So for a skydiver who does 100+ jumps a year, there would be a $7.50 flat rate extra.
This flat rate though is not really so much of a flat rate. Instead, it is a flat rate for every $1,000 of insurance you’re taking out. So if you’re taking out an insurance policy for $100,000, then that $7.50 would turn into an extra $750.
That said, the way in which life insurance companies handle their premiums will vary depending on the type of hazardous activity you’re participating in. Since most underwriters will be very sensitive to your situation given your hazardous activity, approaching them directly is not always wise if you want to save money.
Instead, we suggest contacting us so we can help walk you through the underwriting process, and ask you the proper questions beforehand. Then we can take your answers and shop them around to several providers. Since we will have already screened your answers, the underwriters will be less suspicious and can still provide you with preferable rates. Doing things this way not only saves you time, but can get you a more favorable rate compared to what you could receive on your own.