Hobbies that may make your Life Insurer Squeamish

Things like smoking or having a high risk job will affect your life insurance policy – namely the premiums will be higher in relation to the risk you take. Most people, however, do not think of their hobbies when they take out a policy (or their policies when they take up a hobby). However some activities that you perform as a hobby in your spare time will make your insurance company very nervous. An obvious example;  having “skydiving” as a weekend hobby will affect your policy – It will cost you a lot more than someone who doesn’t go skydiving as you have a greater risk of being killed while enjoying this hobby.

Failure to inform your life insurance company of a potentially dangerous hobby could result in the company not paying out in the event of a death while partaking in that hobby, or as an effect of that hobby.

So what hobbies do life insurance companies consider high risk ?

  • Skydiving (as mentioned),
  • Bike, Boat, or motor vehicle racing,
  • Bungee Jumping (as a continuous hobby – not just a one off),
  • Hang Gliding, hot air ballooning, or any form of flying,
  • Parachuting,
  • Rock, or other forms of climbing (buildings, bridges, etc etc),
  • Scuba diving, or any form of deep diving,
  • Surfing, both normal and wind surfing,
  • Skiing, or snowboarding racing.

There are other hobbies not listed above, so you are advised to consult your insurance company when applying for life insurance if you have a hobby that is considered unusual, or involves anything that may be fatal.

Most people tend to tend to forget these activities when applying for a life insurance (Failure to do so could invalidate your policy, resulting in no payment in the event of a serious accident causing death), particularly in the case of hazardous activities. If you were a regular parachutist when you took your policy out at the age of 25, but stopped doing the activity a few years later, you should contact your insurance company and have the details of your policy reviewed (with parachuting being removed) – You may find your premiums drop considerably.

If your insurance company are uncomfortable with your hobby (either at the start of the policy) you can usually find specialist insurers who offer coverage for your hobby. Check with other people who do the same hobby, or with the club you attend to find the name of a suitable insurer. Obviously the premiums for these policies will be higher than regular policies.

The bottom line is, if you do anything that may put your life in danger, either at home or at your job, you should consult your broker to make sure you have sufficient coverage from your life insurance policy.

What Constitutes A Smoker?

When it comes to life insurance for smokers most insurance companies in Canada believe that a smoker is someone who has used some form of nicotine product or marijuana within the last 12 months. Included in the definition of nicotine products are cigarettes, pipes, cigars and nicotine gum or patches.

Should you choose to quit smoking during your policy term then there are a number of options that can save you money. It is possible that you could change to the non smoker category and therefore receive lower premiums however if your health has changed since the start of the policy this option may not be available.