The participation in extreme sports and risky hobbies have certainly grown in popularity. However, as fatalities and injuries continue to be prominent, insurance companies have raised rates for these thrill seekers. Only certain hobbies are rated as high risk and if you participate in them often, you could find yourself paying a lot more money per month on your insurance premiums. It is important to have adequate life and health insurance to minimize financial hardships. This article will give a few basics on how premiums are determined and what hobbies might be considered high risk.
What Factors Determine Your Premium
There are different factors that will determine how much you pay each month for your insurance policy depending on the state issued. Some of those factors include current health status, lifestyle choices, place of employment, and hobbies. Joining a bowling league would not be a risky hobby. However, skydiving or daredevil type sports would be an example of a risky hobby. Such activities put you at a higher risk for death which means insurance companies will have a higher possibility of paying out your policy in a shorter amount of time.
Some hobbies that would be labeled high risk are:
- Motorcycle riding
- Bungee jumping
- Mountain climbing
- Scuba diving
It is important to note that it is not just life insurance rates that will increase. It is also individual health insurance. There are some risk hobbies that are not so obvious but definitely see increased rates. For example, a professional runner and a Mixed Martial Arts fighter will both pay several hundred dollars more per year. With the Affordable Care Act underway, there may be lower insurance rates available.
There is nothing wrong with wanting to enjoy the best that life has to offer. However, as you are well aware certain events can turn tragic without notice. To compensate for your increased possibility of death, insurance companies will offer you rates that are much higher than that of a healthy and less active person. Do not allow this to discourage you from doing what you want, simply talk with your life insurance company to find out ways you can cut back on your premium. Be honest about your lifestyle and risky hobbies as many insurance companies may not pay out if they find you lied. Knowing you options will allow you to protect your family and still enjoy those daredevil moments you just cannot live without.