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Are you a thrill-seeker who loves dangerous hobbies? Did you know that participating in these high-risk activities can affect your life insurance rates?
You could end up paying thousands more for life insurance. Even worse, the insurance company could deny coverage altogether.
What are the 9 activities insurance companies consider dangerous, and what factors do they look at when determining your rate?
This post answers those questions and more.
By the end, you’ll know exactly what you need to do to get the coverage you need.
So if you’re a thrill-seeker looking for life insurance, this post is for you.
Things To Keep In Mind With Dangerous Hobbies When Buying Life Insurance
You already know that the insurance company looks at your medical history when you apply for life insurance. But did you know that your lifestyle also plays a huge role in securing life insurance?
The riskier your lifestyle, the more likely you are to die from an accident. As a result, the insurance company has to charge you a higher amount to accommodate the higher risk. This is all part of the underwriting process for life insurance.
Makes sense, right?
So what exactly makes up a high-risk lifestyle when it comes to your hobbies? Each insurance company is different, but here are some key points to keep in mind.
Frequency and experience
Are you a thrill-seeker who goes out every weekend to go hang gliding? Or do you only do it once every few years while you’re vacationing?
Obviously, the more often you take part in the extreme sport, the higher your risk. In turn, you’ll likely have to pay more for life insurance.
Similar reasoning applies to experience. The more experienced and qualified you are, the less likely you are to get into an accident. Training, qualification, and certification show the insurance company you are serious about safety. This helps keep rates affordable.
Health and medical history
A heart attack while you’re at home or work with people around you can be life-threatening. But a heart attack while you’re flying a plane? Well, let’s just say the result won’t be pretty.
That’s why besides frequency and experience, your health and medical history play a huge part in determining your rates.
In the worst case scenario, serious medical conditions accompanied by participation in dangerous hobbies can even lead to a decline.
How a rating works
In many situations, the insurance company will give you a rating to account for the higher risk than the average person.
What is a rating and how does it work?
A rating is an extra amount you pay per $1,000 of coverage per year. For example, let’s say the base policy is $1,000 for $1,000,000 of coverage. If you got a rating of $2.5 per $1,000 of coverage, you have to pay an extra $2,500 per year. Your total premium will be $3,500.
Keep in mind that sometimes, the rating doesn’t last forever. Fortunately, some are temporary so you’re not on the hook for high premiums forever.
How an exclusion works
Instead of a rating, sometimes you get an exclusion. In this case, you pay the same amount as the average person. However, coverage for any death resulting from the dangerous activity will be declined.
While this helps keep costs down for you, it won’t help you if you need life insurance because of the dangerous hobby.
Exclusions are more common when you’re applying for disability insurance.
You can be denied coverage
If the insurance company deems that you are too high of a risk, it will decline you coverage outright. Here are some negative factors that can lead to a decline:
- Inexperience
- High-risk activities
- High frequency
- At-risk locations
- Poor health
However, not every insurance company is the same. While one can decline you or rate you heavily, another might view you as a lower risk. The key is to use an experienced and knowledgeable broker who can help you search the market for the right company.
9 Dangerous Hobbies Life Insurance Companies Scrutinize
Now that you know how an insurance company assesses dangerous hobbies, let’s take a look at the 9 most common activities that impact life insurance.
1. Aviation - private
Private aviation means that you are the pilot and flying for recreation or business. It includes helicopter pilots and student pilots.
Risk factors
- Hours of experience
- Instrument Flight Rating (IFR)
- Type of aircraft flown
- Purpose of the flights
- Destinations
- Expected flight hours in the next 12-24 months
- Medical history
Possible underwriting decision
Under 300 hours per year: Standard
Over 300 hours per year: $2.5 rating per $1,000 or higher or Exclusion
Worst case scenario: Decline
2. Aviation - sport
This includes recreational flying activities like ballooning, hang gliding, parachuting, parasailing, skydiving, ultra-light flying, and more.
Basically, any sport where you’re high in the sky and the only thing separating you and the ground is air. Lots and lots of air.
Risk factors
- Amateur or professional
- Type of flying
- Altitude
- Number of hours per year
- Destinations
- Any accidents
- Medical history
Possible underwriting decision
Ballooning: Standard
Hang gliding: $5 rating per $1,000
Parasailing: $2.5 rating per $1,000
Worst case scenario: Decline
3. Bungee jumping
Who would have thought tying a rope to yourself and jumping off a cliff is considered dangerous?
Risk factors
- Past experience
- Recreational, professional, or instructor
- Locations
- Expected number of jumps in the next 12 months
Possible underwriting decision
Best case scenario: Standard
Likely outcome: $2.5 per $1,000 or Exclusion
Worst case scenario: Decline
4. Climbing and mountaineering
If you’re climbing at your local indoor climbing wall, you don’t need to worry about it affecting life insurance.
However, if your adventures take you to the great outdoors, where you’re doing rock, mountain, and ice/snow climbing, the insurance company will want to take a closer look.
Risk factors
- Type of terrain
- Locations and height
- Frequency of climbing
- Experience
- Medical history
- Club membership
Possible underwriting decision
Indoor or trail climbing: Standard
Rock or mountain climbing: $2.5 to $3.5 rating per $1,000 or Exclusion
Ice or snow climbing: $3.5 rating per $1,000 to Decline
Extreme climbing over 23,000 feet: Decline
5. Foreign travel
A higher risk exists for travel to a destination where the Canadian government issued a travel advisory. Whether it’s geopolitical, health, safety, or security-related, some countries and regions are a much higher risk than others.
Check the government of Canada’s website to get up to date information on travel advisories.
Risk factors
- Frequency and duration
- Destination (rural/metropolitan)
- Purpose (business, pleasure)
- Current health
- Canadian citizen or permanent resident status
- Any travel warning or advisories by the Canadian government
- Future travel plans
Possible underwriting decision
Travel to US and other holiday destinations: Standard
Travel for humanitarian reasons: Decline
Travel to at-risk countries: Exclusion or Decline
6. Motorized racing
This is where you operate anything with a motor (car, motorcycle) and go around in circles to see who’s the fastest. This can include motocross, drift racing, drag racing, stock cars, etc.
Risk factors
- Type of motor vehicle, fuel, race, speed, and engine capacity
- Frequency of racing
- Experience
- Personal driving history, violations, and infractions
- License suspensions or revocations
- Medical history
- Lifestyle
Possible underwriting decision
Auto/motocross, stock cars, demolition derby: Standard
Typical case: $5 rating per $1,000
Worst case scenario: $10 to $15 rating per $1,000 to Decline
7. Scuba diving
Scuba diving is another extreme sport that underwriters frown upon.
Participating in scuba diving at a resort during a family vacation is usually no cause for concern. However, frequent divers who go to deep depths and like to solo dive will get the attention of the underwriter.
Risk factors
- Involved in any hazardous diving like wreck, cave, or ice diving
- Training and certification
- Depth and frequency
- Location
- Medical history
- Alcohol or drug use
Possible underwriting decision
Recreational diving under 100 feet: Standard
Depths of over 100 feet: $2.5 to $7.5 rating per $1,000 or Exclusion
Combined with medical conditions like coronary artery disease or respiratory disease: Decline
8. Snow sports
This includes skiing, snowboarding, and snowshoeing. You wouldn’t think this belongs in the list but it could be dangerous depending on where you do it. When it comes to snow sports, avalanches are a major concern for insurance companies.
Risk factors
- Type of terrain: resorts, in-bounds, out-of-bounds, backcountry
- Frequency
- Altitude
- Location
- Experience
- Medical history
- Competitive or professional
Possible underwriting decision
Recreational, in-bound participants: Standard
Out-of-bounds activities, including helicopter and CAT vehicle drop-offs: $2.5 rating per $1,000 or higher, or Exclusion
Worst case scenario: Decline
9. Snowmobiling
Like the other snow sports, the danger lies in where you do it.
Risk factors
- Type of terrain: resorts, in-bounds, out-of-bounds, backcountry
- Frequency
- Altitude
- Speed
- Location
- Experience
- Medical history
- Competitive or professional
Possible underwriting decision
Recreational, trail riders racers: Standard
Cross-country events in Alaska and Northern Canada: $2.5 rating per $1,000 or higher, or exclusion
High-marking, backcountry snowmobiling: Exclusion
Worst case scenario: Decline
Tips For Getting Life Insurance With High-Risk Hobbies
Do you do any of the activities above? If so, here are a few proven tips to help you get life insurance.
Planning to start a dangerous hobby? Get life insurance first
Anxious to start mountain climbing but also need life insurance? Make sure you apply first and lock in the low rates before you start.
Keep in mind most life insurance applications will also ask if you plan on doing any dangerous sports in the next year. To avoid any problems down the road, leave a buffer between the application time and when you start the new hobby.
Stopping your hobby? Get your rates reduced
Kind of like how you can change to non-smoker rates after you’ve stopped smoking for a year, you might be able to get the rating removed after you stop doing the risky hobby.
If you notify your insurer, you might be able to get some relief on your premium.
Some ratings even stop when you get more experience and reach a higher level of certification.
Shop around
Not every insurance company treats high-risk activities the same way. While one might apply a rating, another might approve you at standard rates.
Finding the one that will give you standard rates or a lower rating can save you thousands of dollars!
That’s why it pays to ask your insurance broker to shop around for the best rate.
Be truthful about your dangerous hobbies
The last thing to keep in mind when you’re applying for life insurance is to be open and honest on the application. The insurance company can decline a claim because of material misrepresentation in the first 2 years of the policy.
In case of fraud, there’s no limit on when it can deny a claim. And it doesn’t take much to prove fraud if you die while doing the dangerous activity. The insurance company just has to do a bit of digging to uncover your past participation in this hobby.
The lesson here is to be open, truthful, and transparent when you’re going through the application. Your family needs the insurance proceeds if you die, and you don’t want to leave that to chance.
Participate In A Dangerous Hobby? We Can Help You Get Life Insurance!
Are you a thrill-seeker looking for life insurance? We work with multiple insurance companies and understand their underwriting guidelines. So you know we can help you find the one that views your dangerous hobbies in the best light.
Don’t assume you can’t get life insurance just because you do one of the activities in this list. Talk to us to find out how you can get covered today, no matter what dangerous hobby you do.
Get Your Life Insurance Quote Now
While we make every effort to keep our site updated, please be aware that timely information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Brian So Insurance and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser. This post is a brief summary for indicative purposes only. It does not include all terms, conditions, limitations, exclusions, and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details which can be provided upon request. In case of any discrepancy, the language in the actual policy documents will prevail. A.M. Best financial strength ratings displayed are not a warranty of a company’s financial strength and ability to meet its obligations to policyholders.
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