While obtaining life insurance with an adverse health condition may be difficult, other factors may also require the underwriters to take extra precautions with offering coverage to an applicant – even if they are young and healthy.
There are several “extreme” sports, for example, that life insurance companies consider to be high-risk activities. These can include rock climbing, scuba diving, hot air ballooning, skydiving, racing, hang gliding, and paragliding.
For those who participate in these activities, if you want to be covered while actually taking part in one of these sports – meaning, for instance, that if you were to die while paragliding – it is likely that you will need to pay an extra fee for your life insurance coverage.
There is a right way and a wrong way to buy life insurance – especially for anyone who enjoys paragliding on the weekends. Going about it the wrong way could cost you thousands of dollars. This article will show you the right way and how you can save serious cash on your coverage.
Recently, I had a person who participates in paragliding. He paraglides every weekend – so, therefore, he does this activity about 50 times per year.
I reached out to several insurance companies, and most would approve him at Standard premium rates with a Flat Extra fee of $5.00 per $1,000 of coverage.
This means that he would be required to pay an additional fee of $500 per year on $100,000 of coverage ($5.00 X 100).
However, two insurance companies came in with the best pricing. These insurers were Banner Life at $2.40 for the flat extra fee, and Prudential at $2.50 for the flat extra fee, with a Standard Plus rating.
Obviously, the higher the face value of coverage, the more the extra fee is going to cost you. Just imagine if you were buying a million dollars in life insurance, that extra fee is really going to add up.
The example I gave above is an extreme case (no pun intended) of paragliding and life insurance. For most people, they aren’t paragliding 50 times a year. The more you o it, the more likely you are to suffer from a related accident.
Questions the Insurance Company Will Have For You
As someone who participates in an extreme sport such as paragliding, you will need to take some additional steps in order to secure your life insurance coverage.
When applying for coverage, you will first be required to fill out a traditional life insurance application that asks questions regarding your age, gender, marital status, smoking habits, height and weight, occupation, and hobbies.
Because you participate in paragliding – which is considered by insurance companies to be a potentially dangerous hobby – the underwriters will also need additional details about your actual paragliding activities. These questions will typically include:
- How many times per year do you paraglide?
- Are you trying to break a paragliding record?
- Over what type of terrain are you paragliding?
- Are you part of a paragliding club or organization?
- Are you certified by any paragliding organization?
By answering these questions in detail, the life insurance underwriters will be able to get a clearer picture of exactly how often you participate in the activity, as well as to what extent the insurance company will be taking on a potential additional risk.
Factors that Can Affect the Life Insurance Premium You Pay
There are several factors that may also have an effect on the amount of premium that you pay for your life insurance coverage. For example, if you are part of a paragliding club, as well as if you are certified, it could help to lower your policy’s cost.
This is because it shows the insurance company that you have taken additional steps to ensure that you practice your activity more safely and in a more controlled manner with others who are also well informed.
Conversely, if you are attempting to break a new paragliding record, it will be seen by the insurance company as a very high risk and will likely increase the amount of premium that you will pay for your coverage. Paragliding over a risky type of terrain may also do the same.
Just as with other life insurance criteria, your premium price may also be affected by other factors as well, such as any health condition that you may have, as well as your smoking status and occupational hazards that you may face.
If you’re a smoker and you paraglide, those rates are going to be up in the clouds.
Paragliding and Being Declined
As you can tell from our example above, paragliding won’t get you declined for coverage by itself. But if it’s coupled with other factors, there is a chance you’ll get rejected.
What does all of this mean to you? Let’s give you some hypothetical examples.
Paragliding is going to automatically put you in the high-risk category, but let’s assume you have some health problems. Maybe you’ve been diagnosed with diabetes. Okay, the paragliding with the diabetes is going to make you a VERY high-risk applicant.
Depending on how the rest of your health is, you could be facing a rejection letter. If you don’t get rejected, then you’re going to be facing very high premiums.
Even if you do get rejected, this doesn’t mean you’re out of luck. There are other companies and other life insurance choices.
How to Get the Best Coverage at the Lowest Premium
If you participate in paragliding and need life insurance coverage, you don’t want to go through the application process over and over again. Therefore, the best way to begin your search for coverage is to obtain a quote from a company that specializes in working with higher risk cases.
If you enjoy paragliding, you shouldn’t have to sacrifice your fun. You can still enjoy your hobbies without having to go without life insurance. Paragliding and life insurance aren’t mutually exclusive. You can have both.
Unless you lie on your application (which we don’t recommend – AT ALL), then you’re going to have higher rates. But they aren’t going to be insanely high.
As a paraglider, you probably enjoy taking risks, but you shouldn’t risk your family’s financial future. Even for a paraglider, that’s too risky.
Having life insurance is like a giant safety net placed around your family. If you love your family, why would you not want to protect them as much as you possibly can?
We specialize in placing applicants with insurance companies that underwrite higher risks – which can save you countless hours of time and frustration throughout the life insurance underwriting process. If you would like to get a custom quote for life insurance, fill out our form on this page, or call us directly at 888-552-6159.