Those individuals, who are engaged in active sports such as extreme cycling, hang gliding or mountain climbing and have tougher time securing life insurance than their inactive counterpart has, To some, the problem is not so much of higher premium because there are insurance companies who are willing to provide coverage.
It is known by all that insurance companies like to write policies for risks that are unlikely to happen. The less the risk, the less is the premium. However, insurance companies insure risks that have a 100% chance of occurrence. Their aim is find policy holders whose inevitable demise occurs in distant future. They look to increase the time between policy inception and the ultimate payout.
While an extreme sport participant may be an attractive risk in that he or she does not smoke, is healthy and has illness free medical history. Paragliding, jumping out of airplanes and other extreme sports are known as “hazardous avocations” and they cause the insurance companies either to raise their rates to compensate for the extra risk or cancel the coverage all together.
Take a look at the Avocations and Hazardous Sports sample rating document to have an idea of how to how some life insurance companies respond to risky behaviors. Before engaging in any risky sport, contact the existing life insurance carrier. Discuss the consequences of participating in the new sport. There will be some companies who will charge additional surcharge to cover the risk while the other may deny coverage and cancel the policy.
While applying for life insurance through a traditional company, be sure to tell the truth. Lying on an application is grounds for voiding the policy.
Although, participating in extreme sports are considered risky behavior, do not feel compelled to take the first life insurance quote presented. Compare at least two or three before making any decision.
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