How Can My Hobbies Affect My Life Insurance?

Life Insurance

Did you know your life insurance premiums could be adversely affected by your leisure activities? Most people wouldn’t even think of doing any of the following hazardous activities but there are some that do. And if you are one of them, you need to be aware that they can be a factor in determining your life insurance rates.

Some of the hazardous or dangerous activities that can affect your life insurance are:

  • Sky diving
  • Parachuting
  • Hang gliding
  • Base jumping
  • Bungee jumping
  • Rock or mountain climbing
  • Hot air ballooning
  • Scuba diving
  • Racing auto, motorboats or motorcycles
  • Scuba diving
  • Aviation

The above list of hazardous or dangerous activities would most likely affect your life insurance pricing. When completing your application you will be asked if you participate in any hazardous activities and if your answer is yes, you would be asked to complete a form that will ask for specific information for the type of dangerous or hazardous activity that you are participating in. Some of the questions could be, when was the last time you participated in the hazardous activity? How many times per year do you participate in the activity and do you have any plans to do so in the next year? If you have plans to do so in the next year, your insurance carrier will most likely want to know how many times you are planning on doing the activity.

When you are participating in activities that the insurance company could consider hazardous or dangerous for a time period that is more often than the insurance companies would consider, this can cause the price of your life insurance to potentially be higher. What you do and the amount of time you do the activity are all factors. Sometime the carrier will exclude the hazardous activity altogether. What this means is they will provide you a life insurance policy but will not give you any coverage if you participate in that activity or will charge you a much higher price than someone that doesn’t participate in a dangerous activity.

About the author: Pam Fortier has been in the life insurance business for over 30 years. She also holds both a LUTCF designation and a CISR designation. Pam is adept at helping clients select the coverage they want at the price they can afford. You can contact Pam at 1-800-651-1953 or PFortier@Pivot.com.