Most people don’t need to consider how their hobbies will affect their likelihood of acquiring life insurance. Building model airplanes, taking a jog around the park or strumming a guitar for countless hours isn’t exactly dangerous.
But what about those who prefer to take their free time to the next level — particularly 2,000+ feet off the ground?
The trust is that life insurance for extreme sports enthusiasts can be hard to come by. Here’s why…
Determining Your Life Insurance
When applying for life insurance, your provider will need to determine these three points:
In an attempt to predict how long you may potentially live, your mortality rating is a combined average of your physical health and your chosen lifestyle. Naturally, those who lead dangerous and unhealthy lives will score the lowest on this estimation while healthy non-risk-takers will receive the most affordable benefits.
In order to effectively pay out life insurance claims, providers will often invest the premiums you pay into various stocks, bonds, etc. If your mortality score is low, providers will require that you pay a larger premium so that they can invest more in you in the shortest period of time. Those with a positive mortality score are less likely to need life insurance funds soon, therefore, they are able to pay smaller premiums over a longer period of time.
This third measurement defines how well the life insurance provider has invested its assets. If the provider is able to keep up with its customers’ payout demands, life insurance rates will remain steady. If the provider is struggling to meet payout demands, rate prices will be reevaluated for all participants, including those who are mortally sound; however, customers with low mortality will take the brunt of these premium increases.
Life Insurance Determinations vs. Extreme Sports
When it comes to obtaining life insurance for extreme sports enthusiasts, positive results can be somewhat difficult to determine.
On one hand, many who participate in extreme sports have to maintain a healthy physique in order to control their bodies during activity. On the opposite hand, extreme sports are oftentimes dangerous and even life-threatening. In this case, the risk that accompanies extreme activity vastly outweighs the physicality integrity of the participant, ultimately lowering an otherwise healthy individual’s mortality rate.
Consequentially, this also means that an extreme sports enthusiast who decides to permanently discontinue such activity can file for a life insurance re-evaluation and potentially lower his/her policy.
Activities That Will Ruin Your Mortality Score
By this point in the article, we have discussed how life insurance for extreme sports aficionados can be expensive, but we haven’t discussed what types of sports are considered “extreme.”
For many, wing suit base jumping is the ultimate thrill. Relying on only thin strips of cloth to steer and/or slow the decent, gliding through the air with virtually no restrictions is an adrenaline rush like no other. It also happens to be one of the most dangerous activities any person can participate in.
Other activities that may land you a higher life insurance rate include:
- Mountain climbing
- Motorsports / Racing
- Hang gliding
- Bungee jumping
- Bull riding
- And more…
Want to know where you rank?
To wrap up, we encourage you to ask yourself a few questions: “What types of activities do I enjoy most? Can any of them affect my life insurance premiums? Are higher premiums worth continuing this activity?”
Only you can determine these answers. As for your options, leave that part to us!
The Mutual Fund Company is able to review a state-wide range of life insurance providers to ensure you invest in a policy that fits your needs and budget. Get started here with a free life insurance quote, and let us do the research for you. Yes, it really is that easy.