Life Insurance For Hazardous Activities In Canada
Obtaining life insurance for hazardous activities in Canada is entirely feasible, and numerous insurance companies cater to adventurous individuals who engage in hazardous pursuits.
If you or a loved one are considering a life insurance policy while participating in extreme sports or risky activities, there are important aspects you should be aware of.
Get life insurance for hazardous activities from Sure Insurance to ensure you’re covered for life’s adventures.
What is considered a hazardous activity?
Life insurance companies classify hazardous activities as those with a high risk of injury, encompassing certain sports and hobbies. While a high-risk occupation like piloting can also be considered hazardous, this discussion focuses on recreational activities that carry significant risks.
Despite the inherent dangers, individuals who engage in these activities can often secure life or disability insurance. Therefore, the answer to the question, “Can I get life insurance if I participate in hazardous activities?” is a resounding yes!
However, it is crucial to understand that not all life insurance policies will cover you if you engage in high-risk activities. Some policies may outright refuse coverage, while others may deny a payout in the event of disability or death resulting from such activities. This restriction is due to the elevated risks associated with hazardous pursuits.
Feel secure even with high-risk hobbies. Get a quote from Sure Insurance today!
How does taking part in hazardous activities affect life insurance?
Engaging in hazardous activities poses significant risks, which can affect your life insurance in various ways. Many life insurance policies include exclusions that deny payouts if you become disabled or die as a result of participating in high-risk activities.
These exclusions fall under underwriting guidelines. While some companies will insure you despite these risks, you may need to pay higher monthly premiums.
Additionally, certain insurers may include clauses that reduce your insurance payout depending on the nature of the hazardous activity that caused your death.
What life insurance companies consider to be hazardous activities
A wide range of activities can be considered hazardous. Life insurance companies are not discouraging you from pursuing your passion for skydiving, snowboarding, motorsports, or rock climbing. Instead, they assess the frequency of your participation.
Typically, if you engage in a hazardous activity more than twice a year, you are categorized as someone involved in risky pursuits. There are further distinctions; for instance, indoor rock climbing at a gym is viewed differently from mountain climbing.
Someone who occasionally visits a climbing gym will receive standard insurance coverage. However, if you go mountain climbing every few months, your policy will likely include specific clauses and adjusted coverage due to the increased risk.
Insurance companies may also stipulate that no benefits will be paid out if you become disabled or die while partaking in a hazardous activity.
Understanding the inclusions and exclusions in your life insurance policy is crucial. Itâs essential to choose the right policy that aligns with your lifestyle and recreational interests.
Contact Sure Insurance today to learn more about how your recreational hobby might affect your life insurance. Get a quote now!
The cost of life insurance for someone who participates in hazardous activities
Life insurance companies like Sure Insurance assess various factors during the underwriting process, especially for individuals involved in hazardous activities.
Even if you are in good health without medical conditions, participating in risky activities may lead to different rating evaluations.
For those who partake in hazardous activities, underwriters require additional information to determine the appropriate life insurance coverage. Several key factors influence how these activities impact your life insurance:
- Frequency: How often do you engage in hazardous activities?
- Risk Factor: The level of risk associated with the activity.
- Altitude Gain: For activities like skydiving, climbing, and snowboarding, the altitude you reach is considered.
- Experience: Your level of experience in the activity.
- Certification: Whether you hold relevant certifications, such as a scuba diving certificate.
- Medical History: Your personal medical history.
- Location: Where you participate in the activity.
- Terrain: The type of terrain where the activity takes place.
Some insurance companies may require a detailed questionnaire about your hazardous activities. Beyond the ratings from these activities, your policy may include specific exclusions. For instance, you might incur an extra charge of a few dollars per thousand dollars of coverage if you climb above 4,000 meters.
These underwriting considerations affect your insurance rating, which in turn influences the cost, type, and amount of coverage available to you. However, there are always alternative options to secure life insurance without questions about your activities.
Get a quote from Sure Insurance today and ensure your adventurous lifestyle is fully protected!
Best life insurance policies if you participate in hazardous activities
When engaging in hazardous activities, finding the best life insurance policy depends on various factors unique to each individual. Fortunately, several types of life insurance policies are available, including guaranteed, simplified, and fully underwritten options.
Underwritten Policies
To secure a fully underwritten policy, you’ll need to complete a questionnaire about your hazardous activities. This process assesses your skills, experience, and frequency of participation.
The advantage of this evaluation is the potential for preferred or standard rates, making your insurance cost only slightly higher than for those not involved in risky activities.
This type of policy often provides higher coverage amounts and access to policies with benefits and features tailored to your needs.
Many insurance companies offer underwritten policies for those involved in hazardous activities, with some exclusions that might increase your premium slightly per $1000 of coverage.
Despite possibly higher premiums, these policies generally offer larger coverage amounts and more comprehensive features than others. If you participate in hazardous activities, contact us today to learn more about obtaining an underwritten policy.
Guaranteed or No Medical Policies
For those who prefer to avoid detailed questionnaires or medical evaluations, or who have been declined for an underwritten policy, guaranteed or no medical policies are beneficial.
This is particularly useful for those engaging in extreme versions of hazardous activities, such as climbing in foreign countries with icy or snowy terrain or at high altitudes.
While some companies offer underwritten policies even for extreme activities, guaranteed or no medical policies provide an easier path to coverage.
These policies usually have higher premiums and limited coverage amounts, with term life insurance policies offering up to $500,000 and whole life insurance policies offering $50,000 or less. Despite the lower coverage, most Canadian insurance companies offer these types of policies.
Simplified Policies
Simplified policies, available from many insurance companies, blend elements of fully underwritten and guaranteed policies.
They appeal to those seeking higher coverage amounts and more features without undergoing a full medical examination. These policies require you to answer a few medical questions but do not necessitate a doctor’s visit.
Coverage amounts and features vary based on factors such as your health, age, and smoking status. Simplified policies provide ease and comprehensive coverage for those engaged in hazardous activities.
Get life insurance for hazardous activities from Sure Insurance today and secure the peace of mind you deserve.
What happens if I take part in hazardous activities when I already have life insurance?
If you have an existing life insurance policy and begin engaging in hazardous activities, it could significantly impact your life insurance benefits.
While developing health conditions won’t affect your coverage, fatalities resulting from dangerous sports might lead to your insurer not paying out your benefits. Accidents can happen, but infrequent participation in risky activities usually won’t affect your benefits.
For those regularly involved in hazardous sports, itâs advisable to consult with your life insurance provider to understand how this might influence your policy and benefits.
Canadian life insurance companies cannot alter or cancel your coverage once itâs active, but there are numerous exclusions and clauses to consider.
How much does your hazardous activity affect your life insurance?
As previously mentioned, underwritten policies have various exclusions that affect your insurability. Each hazardous activity has specific factors that insurers evaluate during underwriting.
Here are some general considerations for different activities:
Skydiving:
- Tried once with no plans: standard rating
- Others: exclusions or $2.50 per thousand in coverage
- High-risk jumps: declined
Snow Sports:
- Average recreational participants: standard rating
- ‘Out-of-Bounds’ activities: may require $2.50 per million or exclusion/decline
Climbing:
- Indoor climbing: standard
- Hiking/trekking: standard
- Rock/ice climbing: exclusion or $2.50 per thousand to decline, depending on cliff height and location
Scuba Diving:
- Amateur diving < 100ft: standard
- Others: exclusion or $2.50 to $10.00 per thousand
- Snorkeling: standard
- With comorbidities: declined
Motor Vehicle Sports:
- Ranges from standard to exclusion or $2.50 to $15.00 per thousand, depending on vehicle and racing type
- Racing questionnaire and personal driving record are considered
Aviation (Recreational):
- Depends on flying type, destinations, and medical history
- Possible range from standard to exclusion or $2.50 to $5.00 per thousand
- Aviation questionnaire required
- For personalized advice and a clearer understanding of how your activities might affect your life insurance, contact your provider.
Get a quote from Sure Insurance today to secure your peace of mind.
Are There Any Exclusions for Life Insurance for Snow Sports?
Yes, certain exclusions do apply to hazardous activities. These exclusions exist because the risk of death significantly increases when clients engage in extreme versions of their hobbies or activities.
This is relevant for snow sports enthusiasts as well. Those who participate in snow sports need to be cautious about avalanches.
If an insurance holder dies or is injured while engaging in snow sports, such as snowmobiling, cross-country or downhill skiing, snowshoeing, etc., in an area with a posted high or extreme avalanche danger warning, they are excluded from receiving the death benefit.
Underwriters have noted an increase in applicants participating in activities like hiking, heli-skiing, and snowmobiling in remote locations where avalanches are possible.
While customers might underestimate the risk, underwriters are aware that avalanche-related deaths do occur in Canada.
Therefore, it is crucial to heed avalanche warnings and avoid such areas to protect both your life and your life insurance policy.
Get a quote from Sure Insurance today to ensure you’re covered and informed about your policy exclusions.
Frequently Asked Questions (FAQs) About life insurance for hazardous activities
Are hazardous activities or extreme sports covered by life insurance?
Many hazardous activities and extreme sports are covered by life insurance! However, there are some exclusions, and your premium might increase depending on several factors. Fortunately, most insurance companies will still insure you if you engage in hazardous activities or extreme sports.
How do you get life insurance if you participate in extreme sports or hazardous activities?
There are simplified life insurance policies, guaranteed life insurance policies, and fully underwritten life insurance policies available for those who participate in hazardous activities. You have many options as an extreme sports enthusiast or someone involved in hazardous activities.
Even though guaranteed policies will insure you without extensive questioning, you will likely be able to obtain a fully underwritten life insurance policy as well.
Can I get life insurance if I participate in extreme sports or hazardous activities?
You can get life insurance if you engage in extreme sports or hazardous activities. There are many insurance policies tailored to meet your needs and preferences.
While some companies may include exceptions and clauses in your policy, most people involved in hazardous activities or extreme sports will find it relatively easy to secure a life insurance policy.
Get life insurance for hazardous activities from Sure Insurance today to protect your adventurous lifestyle.