The wind is howling around the open door. You think to yourself, “Oh man, here we go again!” You take a deep breath and leap from a perfectly good plane with a nylon tent strapped to your back!
Adverse Effects of Dangerous Hobbies on Term Life Insurance
If you participate in what insurance companies refer to as “dangerous activities,” you run the risk of paying higher premiums for term life insurance. Some companies may exclude you all together if they see you as too much of a risk. Think of it like this: insurance companies are looking for safe bets, and people who take extreme risks “up-the-ante.” If you have a thrill-seeking streak, you should make sure you have enough term life insurance coverage, and make sure you are getting the best rate you can.
What is Considered a Dangerous Hobby?
It is a given that base jumping and hang gliding are dangerous stuff, but activities as common as skiing could be seen as a liability to insurance companies. Some dangerous activities which could affect your term life insurance rates are:
- Base Jumping
- Bungee Jumping
- Car/Bike/ Power Boat Racing
- Hang Gliding
- Hot Air Ballooning
- Rock Climbing/ Mountaineering
- Scuba Diving
- White Water Rafting
Things you may not consider dangerous can also have an affect your insurability for term life coverage. According to the Insurance Information Institute (III), more people get hurt each year playing pool than mountain climbing. Even more surprising, in 2006, more people were hurt fishing than playing tennis, ice hockey, racquet ball, mountain biking, and water skiing combined!
What They Don’t Know Can’t Hurt Me
Our parents always told us to tell the truth, and this situation is no different. If you fail to mention something in the application that is relevant to the policy and how it was approved and issued, it can be used to contest payment of the policy if you die during what is called the “incontestability period,” which is generally two years for most companies. After this period expires, and lacking evidence of fraud, the insurance company cannot contest a claim by a policy holder’s beneficiaries. So, if you decide to leave out the fact that you’re a member of a rock climbing club, or have one punch left on your skydiving loyalty card, you could be ultimately jeopardizing your family’s claim to your life insurance proceeds should you die as a result of such conduct during the first two years of the policy.
Other Issues That Affect Life Insurance Costs
When thinking about term life insurance, it is good to keep in mind other aspects that affect coverage and costs. Bad habits like tobacco use, drug use, and excessive drinking can have a negative affect on life insurance coverage. Health problems such as high blood pressure and high cholesterol levels can affect your insurance rates as well.
Make sure that you have the proper amount of insurance to protect those you might leave behind. Shop around and compare term life insurance quotes.