For every lifestyle, there is an actuarial table that generates prices to insure a person who enjoys it. But, how does a life insurance provider look upon a person who races around in a car at 200 miles per hour? What actuarial table covers a HALO jumper, the guy who parachutes from high altitudes and opens his chute below the recommended height? Surely no company in its right mind would insure the guy who is hanging freehand from a cliff, with only one finger between him and a grisly demise! Right?
An insurance company will insure practically anything for the right price. For the extreme hobbyist, establishing the right price means asking the right questions about your experience, your training and what precisely the heck it is you're doing. If you're a pilot, the insurance company will want to know if you are licensed and how many flights you have taken. A parachutist will be subject to questions about how many jumps he has done and how often he re-ups his training. If you fly a hot air balloon, the insurance company will want to know what terrain you're flying over.
It's always important that you answer these questions honestly. Yes, you can fib about what terrain you're flying your hot air balloon over. And you will pay a lower premium. And when your claim is filed, the insurance company will politely – and rightly – deny the claim.
Remember, we're talking about life insurance. This is money that is expected to carry your loved ones through the years you were expected to be their breadwinner. Fudging a detail on the questionnaire about your extreme sports activities and hobbies is not worth the risk. The entire logic here is to make sure your risk-taking fun doesn't ruin your family's financial future, should something unanticipated happen.
Of course, you want the lowest premium possible. And you definitely want the claim to be fulfilled should something nasty happen to you. To make that happen, you need to talk to your insurance provider about what you can do to reduce your rate. That may mean joining governing bodies for your sport. It almost certainly means completing training and certification courses. It is absolutely necessary that you have all the licenses the law requires – the insurance company is no more enthusiastic about an unlicensed pilot than it is about an unlicensed automobile driver!
Sometimes, obtaining that training and licensing can be difficult. For example, pilots of certain ultralight aircraft are not required, in some airspaces, to be licensed. Where you can't dispel concerns with licensing and training, you need to keep logs of all your activities. If your lifestyle changes, the insurance company needs to know that. If you decide to go from climbing Mt. Rainier to climbing Mt. Everest, your family's claim on your policy will likely hinge on whether you told the insurer you started attacking meaner peaks.
Life insurance is a great choice for everyone. But, for the enthusiasts of extreme sports and hobbies, life insurance is even more important. You're worried about real risks which means you should ask the right questions and use online comparison shopping services like KANETIX for your life insurance. In fact, you are taking increased risks that you will die before the policy has fully matured. It's never an insurer's job to cover risks it didn't know about. Don't leave your family in a bind. Ask your life insurance provider to review your risks to ensure you are carrying the right insurance for all your hobbies.
Lucas Taylor is a life insurance broker from Toronto. He likes to participate in extreme sports to curb his sometimes mundane work life. Having recieved his skydiving certification at the age of 26, Lucas travels all over the world to look for the best spots to jump out of a plane. He is a true adrenaline junkie.