What is Hazardous Occupation Term Life Insurance?
Those who decide to live life on the edge need to ensure that they have adequate term life insurance coverage because the risk for losing their lives tends to go up significantly. One of the largest aspects of your life that will be evaluated by an underwriter when determining whether or not to grant coverage is what hobbies you participate in. If a no medical exam life insurance applicant appears to be a greater risk to a particular term life insurance company, then that applicant’s premiums will be higher and their insurance coverage may be limited only to a certain number of years at a time.
Hazardous Occupation Term Life Insurance
When a term life insurance policyholder goes to renew their term life insurance rates, they may find that they are subject to a review to assess the risk involved with insuring them. The bottom line when it comes to hazardous occupation term life insurance is that any applicant who regularly risks his or her life will probably end up paying higher premiums than the typical applicant. Unfortunately, most term life insurance rates are calculated based on the average person and do not necessarily figure in those with hazardous occupations.
For some people, participating regularly in a variety of hazardous activities is part of their everyday life, rather than simply a hobby. Pilots, scuba instructors, mountain climbing guides, professional surfers, motocross racers and racecar drivers count these extreme activities as their single source of income. These individuals depend on their thrilling but dangerous professions in order to make a living. Unfortunately, all of these people have to deal with higher life insurance premiums since the insurance company recognizes the risk of death is higher then with everyday professions.
Avoid Higher Premiums
However, just because you are participating in a dangerous profession or a hazardous occupation that simply does not mean that you are limited to unreasonable term life insurance rates. There is no reason that you cannot still find affordable coverage if you make a point to obtain all of the necessary licenses and to take all of the courses that you can to prove your experience and your safety skills. For example, commercial airline pilots are not subject to additional rate fees, because they undergo extensive training. Your best option is to inquire about a carrier’s requirements for fee waiving so that you can meet these expectations before you apply for coverage.
Extreme Sports and Term Life Insurance
Many thrill seekers enjoy engaging in extreme sports, including snowboarding, skateboarding, hang gliding, dirt biking, skiing, mountain climbing, rock diving and scuba diving. Other extreme sports may include bungee jumping, parachuting and rappelling. When it comes to insurance company regulations, these term life insurance companies tend to take an all or nothing approach. Most insurance companies try to be fair by charging a flat extra rate on your premium in order to cover regularly incurred extreme sports risks, which can actually double the rate, or even triple, if you are getting on in age. The best way to find coverage that will not rip you off is to shop around and compare a large number of different rates. The premiums involved with covering the risks associated with being an adrenaline junky can actually vary greatly from company to company so the only way you can get the best rate is if you shop around and do your research beforehand.