Everyone wants to live their life to the fullest, but adventure seekers enjoy pushing the envelope. Their hobbies and leisure time activities are dangerous in the extreme, making insurance coverage difficult to obtain and highly expensive. The fear of missing out is a driving factor and it’s being taken to new heights as people emerge from lockdowns due to the COVID-19 pandemic.
The range of risky – and in some instances death-defying pursuits – run the gamut from snowboarding dangerous peaks, bungee jumping and ziplining to spelunking, base jumping scuba diving and hang gliding. Even activities that many consider innocuous, such as skateboarding, is considered risky by insurance companies, so before running with the bulls or cage diving with sharks, daredevils will need to pay heed to their insurance policy.
Some insurance companies will flatly refuse to insure individuals that participate in certain activities. However, the vast majority won’t quibble too much as long as thrill seekers are willing to pay the large insurance premiums required. There are four basics individuals need to keep in mind about life insurance policies for dangerous hobbies.
Occasionally engaging in risky activities typically won’t affect rates too much. An example would be surfing twice a year while on vacation. Adrenaline junkies that are intent upon catching the biggest wave possible will pay dearly for their passion.
Premiums will be notably higher for risk-takers. The rates will reflect factors that include age, health, gender, experience, safety precautions, and the nature of the activity. Some types of casual activities won’t affect rates overly much, even if they’re classified as risky. It’s only when those hobbies are taken to the extreme that rates rise.
Don’t expect insurance benefits to begin immediately. Policies have a contestability period, otherwise known as a probationary period. Any claim filed during that wait time could, and usually will be, denied. The contestability period can range anywhere between 1 to 2 years.
Adventure seekers applying for life insurance that engage in activities classified as dangerous or risky should be prepared to be denied coverage. The insurer may decide that the potential for a payout represents too much of a financial risk. The good news is that there are companies that will extend life insurance to the most extreme thrill seekers.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487