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Is Your Risky Behavior Affecting Your Life Insurance Rates?

If you’re an adventurer or a risk-taker, chances are you’re going to have a tough time finding an inexpensive life insurance policy. Insurance underwriters consider you a risky investment; you’re more likely to be mortally wounded than someone who doesn’t bungee jump or skydive. Take a look at the following risky situations so that you can begin to understand your unique insurance situation:

1. Private pilots. Insurance companies have no problem with licensed
commercial pilots. A certified career pilot for a large commercial airline will get a life insurance policy at normal rates, but your buddy who takes out a light aircraft on the weekend is going to pay an incredibly high rate- if he even gets approved. There are four major underwriting factors that determine a pilot's qualification for life insurance and the price of premiums: total number of solo hours, number of solo hours flown each year, whether or not you are instrument rated and type of aircraft flown.

2. Auto racing. There are several classes of auto racing, and each has different underwriting decisions attached to it. Whether the racing is professional or amateur, the type and class of racing, the number of races per year, the type of track, the safety equipment used and the maximum speed attained can all play a part in determining policy rates. All you ATV (all-terrain vehicle) riders get a break: standard rates. Formula One (Grand Prix) applications, however, are typically declined.

3. Mountain climbing. Once again, specific details of the climbing location and safety equipment determine the rates. Usually, no extra premium is required for trail climbing, rock climbing or climbing in North America. If your passion is snow and ice climbing in Tibet, be prepared for what is called a “flat extra” premium.

4. Scuba diving. SCUBA diving is becoming more and more popular. The factors to be concerned about with scuba diving are level of certification, maximum depths attained, frequency and location of the dives and whether or not you use the buddy system.

5. Beating the system. There are ways to lower your insurance rates, even if you do hydro-race across the Great Lakes. First, join the association that regulates your sport, and earn the highest level of proficiency it provides. Second, consider getting a policy with a specific exclusion for your risk. (That way, you're covered for everything else, giving your family protection if you die in "normal" ways.) Third, make sure you buy every piece of safety equipment available. Even though you're living on the edge, your insurance rates don't have to.

Is your favorite wild activity something you're always enjoyed, or something new? Either way, make sure you notify your insurance company of any dangerous activities that are part of your lifestyle. If you're shopping for new insurance, NetQuote can connect you with multiple agents who can answer your questions and offer you the policy you need.

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