Obtaining life insurance may become important to you at some point – if it isn’t already.
However, many people may not realise that their hobbies could impact their ability to obtain affordable coverage.
Many insurance companies place exclusions on activities that are considered dangerous because these activities are considered to greatly increase the chance of an accident or injury, thus making individuals who participate in these activities a greater life insurance risk.
If you’re an adrenaline-junkie who participates in one of these activities, beware.
This story was originally published by Investopedia.
Though many forms of recreational climbing, hiking or wall climbing may not have any impact on your life insurance, those who get into extreme forms of mountain or rock climbing may find it difficult to obtain their life insurance company's approval.
An insurance company's concern increases when the applicant climbs alone, freestyle (without safety harnesses) or climbs to extreme elevations.
Most people who participate in the more extreme forms of mountaineering are likely to find that they're not insurable for these activities.
If you're nervous about the idea of jumping out of a plane, you can rest assured that your life insurance company is as well.
Though most people who parachute do so without incident, this category of activity falls into one of the more statistically dangerous hobbies you could take up.
The risk increases if you take part in B.A.S.E. jumping (buildings, antennas, spans and earth). If you choose to participate in B.A.S.E. jumping, you'll sadly find that this activity will not be covered. As for sky diving, you may be able to work out some form of coverage if you are extremely experienced, hold a licence and log a high number of jumps each year.
Also, if you are an inexperienced jumper, your insurance company would also prefer you go through a qualified jump school that's closely monitored. Bungee jumping also falls within this category of dangerous activities.
Even though you may think you're not putting yourself in danger quite like jumping out of a flying plane, scuba diving is considered one of the most dangerous activities a person can do. This is because of the relatively high incidences of drowning and decompression sickness.
Though your insurance company may not increase your premiums or decline your insurance application if you did one scuba lesson while on holiday in Hawaii, they are likely to be concerned if you are doing deep-water dives on a regular basis. This is one activity where the more you do it, the more dangerous the activity is deemed to be.
Also, those who dive alone, lack formal training or do deep-water dives will generally be declined for life insurance policies.
Though the recreational skier or snowboarder is unlikely to encounter any serious issues from this or her insurance company, those who get involved in back-country skiing are probably going to encounter opposition. Skiing or snowboarding on groomed trails at ski hills isn't in the same ball park as selecting remote, secluded locations.
Cities or towns close to large mountain ranges are no strangers to the dangers associated with avalanches, which is something that back-country skiers, snowboarders and snowmobilers must be cautious of as the snow on these mountains can become very unsettled after being disturbed.
The remoteness adds another factor of danger as rescue of injured parties may be much more difficult.
For these reasons, back-country skiers, snowboarders and snowmobilers will likely experience great difficulty in finding an insurance company willing to cover these activities.
If you're an aviation enthusiast who's looking to start operating a private or personal aircraft, this activity is another one your insurance company is likely to take a dim view on.
This exclusion isn't only restricted to the pilot of privately owned planes, but many insurance companies typically don't cover incidents that occur when you're a passenger in a private plane either. Why is this? Private aviation is monitored less closely than commercial aviation, so there is deemed to be a greater chance of incident.
A few other aviation activities that your insurance company may not cover include ballooning and hang gliding.
Whether you like to race in a car, motorcycle, go-cart or any other form of motorised vehicle, you're insurance company is probably going to take a second look at your application.
Some lenience may be given for those who participate in formally organised events on approved tracks that include safety personnel or medical staff.
However, if you are found to have an illegal stunting or car racing charge on your driving record, this is not going to look good to an insurance company, and will likely cause you to be declined for life insurance altogether.
In addition to scuba diving, there are a number of other watersports that aren't typically covered by life insurance providers.
Those who participate in power boating or boat racing are likely to find that these activities aren't covered by insurers either.
White water rafting is typically excluded from coverage, as is surfing. Both are seen as activities that increase your chances of drowning.
Even though you may not be likely to face an injury so severe that it could end your life, boxers are highly susceptible to injury.
Some of these injuries may even be so severe that they could reduce your quality of life for the remainder of your days.
Participating in boxing could definitely make it more difficult for participants to qualify for life insurance, and it's certainly going to make it more difficult to qualify for personal accident insurance.
As far as your insurance company is concerned, participating in an activity once is not the same thing as partaking in it regularly. An insurance company makes money through insuring people that are considered safe bets.
Those who are seen as having thrill-seeking personalities are going to have difficultly getting coverage. Keep in mind that what one insurance company considers a dangerous activity may not be the same as another.
Even if you do participate in these so-called 'dangerous activities,' it doesn't mean you'll necessarily be declined completely - it may just be more expensive to obtain and maintain a policy.
There are insurance companies that specialize in coverage for certain kinds of activities or hobbies, such as aviation, so be sure to shop around for the company that will work best for you. You may also be able to add a rider to your existing insurance plan to cover you for certain activities.
Additionally, if you want to reduce your expenditures, you could examine the benefit of getting a professional certificate in your hobby of choice.
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