Life Insurance and Dangerous Activities
If you participate in dangerous activities, you represent a greater risk for an insurer, and an increase in risk is likely to increase your life insurance rates.
Not an open-and-shut case
The following is a list of popular activities which carry a higher-than-usual risk. However, different life insurance carriers have their own qualifications for dangerous activities . An activity that may increase your life insurance rates at one company may not penalize you at another:
- private aviation, hot air ballooning
- rock climbing, mountaineering, caving, spelunking
- scuba diving
- sky diving/parachuting
- hang gliding
- auto racing, motorsports
- yacht racing
- skiing
- extreme sports
Even if a company includes your avocation in its list of high-risk pursuits, you may qualify as an ordinary risk. Each activity carries its own special considerations, among them: How often do you indulge in said activity? Are you licensed or certified? How much experience do you have?
Your professional occupation is also of consideration for high-risk activities. The following fields carry higher-than-usual risk and may merit consideration when applying for life insurance:
- agriculture
- construction
- forestry
- fishing
- hunting
- mining
- transportation
- warehousing
Exclusions
Life insurance policies often contain one or more exclusions, which are certain conditions for which coverage will not be extended. For instance, a wartime exclusion will exempt the insurer from paying a death benefit if the insured is killed in war. You may prefer excluding your dangerous activities from coverage rather than paying a higher premium to be insured while participating in them.
Dangerous sports insurance
Dangerous sports insurance pays benefits if you are injured or killed in the course of a dangerous sport. Rather than pay higher premiums for high-risk life insurance, you may prefer to supplement your ordinary life insurance by purchasing a dangerous sports insurance policy.
This page is intended as a marketing material, not as a substitute for legal or medical counsel. Consult a physician, attorney, or licensed life insurance agent for authoritative advice, as the matter may warrant. The lists of activities and occupations above are not comprehensive. Consult your life insurance carrier for their philosophy on high-risk activities.
