THURSDAY, JANUARY 22, 2015
So you've decided that it's the right time to get life insurance. But did you realize that one of your favorite hobbies may increase the cost of your life insurance or prevent you from getting it at all? Read on to see if one of your favorite hobbies may cause you a problem when applying for life insurance.
Recreational flying is the big one here, but could apply to commercial pilots as well. It depends on the company. If you are a private pilot or a student pilot, here's what could happen during the life insurance application process:
- Completion of an aviation questionnaire.
- Additional premium charged. This could be a flat dollar amount added on the final premium or an extra premium added on per thousand dollars of coverage. It is based on years of experience, age and certifications achieved.
- Flying exclusion attached to the issued policy. Is this is the case, if you have a fatal accident that occurs during flying, no benefit would be paid.
- Denial of application.
Please note that flying doesn't just include airplanes- Gliders, Sailplanes, and Rotorcraft would also apply.
For those who enjoy scuba diving, here's what might happen during the application process.
- Completion of a scuba diving questionnaire.
- For those that dive past a certain depth, coverage could be offered with an additional rating (meaning additional premium).
- Divers who exceed 100 feet or are not certified or dive alone or do cave/ wreck diving will not be considered for coverage (this comes directly from one of our life insurance companies).
This can include parachute jumping or skydiving. Typically, these are considered on a case-by-case basis. If acceptable, they will usually be covered with a flat extra premium.
Boat, Car and Motorcycle Racing
These hobbies often require detailed information including, but not limited to:
- Detailed written description
- Phone call interview with underwriter
In these situations, a trial application (meaning no money paid with application) is usually recommended. The application would go through the normal underwriting process, with the addition of any of the above.
These are just a few of the most common hobbies that may interfere with getting life insurance. Can you think of others? To discuss your situation and how we might help you, call Alan Galvez Insurance at (937) 592-4871 or visit our life insurance page for additional tips (you can request a quote as well).
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