Toronto, Ontario (PRWEB) June 20, 2013
There are those who like the simple activities in life whereas others who enjoy engaging in high-risk activities such as sky diving, racing, or hang gliding on a regular basis. For these people, life insurance companies probe further to learn more about their risk taking lifestyle, says KANETIX.ca.
It is not surprising that no two life insurance companies are the same in what they define as a dangerous pastime. Where one life insurer may consider a hobby high risk, another may not. Also, it may not be readily apparent if it's a "hazardous activity" from the get go; often life insurers will take into consideration how often someone participates in the activity and where, geographically, this hobby takes place before deciding. If an insured regularly takes part in any of the following activities (there are others, these are just a few of the most common), your life insurance company's ears will perk up and they'll want to learn more.
Many speed loving enthusiasts spend their weekends testing their reaction and driving skills against other like-minded racers. Whether it's auto, motorcycle, power boat or snowmobile racing, speedways, tracks and courses can be found all over Canada to fulfill the need for speed.
If a driver is a speed demon, when getting life insurance, the insurance provider will likely probe further to determine the type of vehicle being used in the race, the types of tracks (oval courses, cross country, drag etc.), the years the driver has been racing for, where the races take place, whether the races are club sanctioned, the average speed driven, how often the driver has raced in the last year, as well as any future racing plans.
For sky divers, a life insurer will likely ask: if they belong to a club affiliated with the Canadian Sport Parachuting Association, how long they have been sky diving, how many jumps they have logged in the last year, how many jumps they plan on in the next year, and whether or not they participate in exhibitions or competitions.
For those who prefer to takeoff and peer down from a plane as a pilot, they will get asked questions from a life insurer like: the type of license they hold, the type of aircraft they are authorized to fly, when and where they learned to fly, their flying hours, if they have ever been grounded and why, who owns and maintains the aircraft, and where they fly to and from. For those into ballooning and hang gliding they can expect questions around: the construction (home assembled, factory assembled, motorized etc.), the types of terrain they fly over, and whether or not they hold a pilot's license.
•Rock-climbing and Mountaineering
Legends abound of rugged adventurers who conquer the most daunting peaks under adverse conditions. The achievements of John Clarke in British Columbia's Coast Range mountains and Laurie Skreslet in Mount Everest continue to inspire many to explore rough terrain as a hobby.
If scaling the side of a cliff or trekking up the side of a mountain is a preferred past time then the insurance company will ask questions like: the type of climbing it is (trail, rock, snow, ice or glacier), how often one climbs, how long they have been doing it, whether or not they climb alone, geographic regions they have tackled or plan to, the time of year they typically go out, the type of equipment normally carried, and how many hours/days typically make up their average climb.
•Scuba Diving and Surfing
The city of Tofino, British Columbia may be surf central for Canadian surfers, but there are many top surf spots that make surfing in Canada increasingly popular. Same goes for scuba diving. The Great Lakes region is a world-renowned Canadian scuba diving destination for those who enjoy wreck diving.
If a wetsuit is a key article of clothing then a life insurance company will ask scuba divers the type of diving activity (ice, night, salvage etc.), the locations (lakes, rivers, ocean beaches), whether or not they dive alone, are certified, part of an organized club, as well as their diving history for the last year (number of dives, duration underwater, depth) and the dives they plan for the upcoming year.
Everyone should be free to follow their bliss, whatever that might be, and just because someone enjoys living closer to the edge than most people, it doesn't mean they can not get insurance.
Now some people might be inclined to say, "Why tell them I skydive? They don't need to know." It is never a good idea to withhold information because it will affect the validity of any insurance policy. Regardless of the type of insurance purchased, whether mortgage life insurance or term life insurance, no one wants to put their loved ones into a situation where there is a potential for a denied claim as a result of an extreme hobby accident or death. Decide to do the right thing and take the honest route, read up on some tips to save money on life insurance.
Life on the edge and life insurance
If a life insurance company considers a hobby high risk, they will approach it in one of the following three ways:
1. Offer coverage at a rate higher than the standard life insurance rate.
2. Offer coverage, but the coverage will not extend to the at-risk hobby. What this means, is if someone dies for a reason unrelated to their extreme hobby, they will pay out the death benefit, but they will not if it is related.
3. Opt not to offer a life insurance policy.
Launched in October 1999, KANETIX was Canada's first online insurance marketplace and today provides over a million quotes per year to consumers looking for insurance, as well as comparisons for mortgage rates and credit cards.
The KANETIX life insurance comparison service is a one-stop shopping environment for consumers. Each day, thousands visit the KANETIX website at http://www.kanetix.ca to comparison shop their various financial needs. Shoppers choose what they want to compare, obtain a quotation and complete an online application or, with the help of KANETIX connect with the provider to purchase or apply for the product over the phone.
Through its Software as a Service team, KANETIX is also the leading provider of online insurance quotation technology, developing online quotation systems, mobile solutions, actuarial tools and websites for many of Canada's largest insurance brands.
For more information, visit KANETIX.ca or contact:
416.599.9779 ext. 343