Term Life Insurance

If you regularly participate in dangerous activities, either because you have a hazardous job or because you enjoy extreme sports (such as scuba diving, sky diving, mountain climbing, racing cars, etc.), then you definitely should have whole life insurance. Unfortunately, the more hazardous your activities are, the more expensive that whole life insurance will be! The underwriter is charged with evaluating our risk as a potential policy holder, and of course that means considering your job and favorite pastimes. If you are deemed a great risk, then it will be reflected in the form of higher monthly premiums. The policy may be limited for a set number of years.

Nevertheless, you should be able to find an affordable life insurance policy. Rates are not unreasonable, if you take the necessary precautions. Make sure that you are fully certified and licensed. If you’re a weekend pilot you will pay more, but a commercial airline pilot would not, because he or she has had significant safety training, for example. You can obtain similar benefits by getting certification as a scuba diving or mountain climbing instructor, for example. Ask your life insurance provider what kind of precautions might help to reduce your monthly premiums. Then be sure to get those certifications and licenses before applying.

Most providers of whole life insurance will not completely rule out all hazardous activities. They recognize that there is a diverse rang, from skateboarding and snowboarding to bungee jumping and parachuting. Likewise, they recognize that some people participate in these activities regularly, whereas other people view them as a one-in-a-lifetime thrill. If you try out a new extreme sport activity just once, your premiums won’t rise.

Whole life insurance providers most commonly charge an additional flat fee for people who regularly participate in hazardous activities. This fee is significant, and can easily double your monthly premiums. As you age, the fee will increase and could even triple your premiums. If, as you get older, you decide to no longer participate in the hazardous activities, tell the provider right away, and you’ll probably see your premiums fall.

Some people who engage in extreme sports avoid the high cost of whole life insurance by paying for coverage for everything except the hazardous activity. In this way, the policy holder is covered for death due to a car accident or hazardous activity, but not if he or she dies while practicing the extreme sport.

It’s important to do comparative shopping, because some life insurance companies penalize hazardous activities much more than others do. Also, if you participate in a risky sport that hasn’t been around for very long, it may not yet be in the insurance company’s policy, in which case you might not pay any penalty at all.

Learn as much as you can about the hazardous activity you participate in and mitigate the risks in any way possible, getting licensed and taking safety classes. This is the best way to keep your monthly premiums affordable.