Some people like eating life with a big spoon. To this group, living without adventures is no life at all. Unfortunately, the unexpected happens at any time, even when on an adventure, sometimes leaving your loved one without a source of livelihood.
The best protection against leaving your loved ones is getting life insurance coverage. If you are looking to go on an adventure of a lifetime but are unsure whether carrying life insurance is the best thing to do, this guide can answer some of your questions.
Finding The Right Policy
If you are buying life insurance for the first time, shopping for one can feel like a daunting task, especially if you do not know the ins and outs of life insurance and nobody can claim to know everything about life insurance.
The challenge goes on a new level when seeking coverage at a time your life is full of adventures. Even when you may have experience with life insurance, it is still a good idea to shop around to ensure you are not getting a raw deal from your insurance provider.
Below are some things you may want to consider before buying life insurance in preparation for a big adventure.
1. Life Insurance May Not Cover Death Under Some Circumstances
It is perfectly fine to carry life insurance before heading out on an adventure or at any point in life as long as you have people that depend on you for a living, such as children or a spouse.
However, itβs important to note that deaths caused by a hazardous activity may not be compensable under traditional life insurance coverage. Dangerous activities, in this case, are any recreational pursuits of careers that insurers consider high-risk and thus not covered. Hazardous activities include skiing, scuba diving, race car driving, bungee jumping, flying a plane, and horse riding.
It is also important to note that insurance providers will have different exclusions, so you may want to ensure you understand what your policy excludes before engaging in any activity.
Engaging in a hazardous activity may not necessarily void your life policy; however, problems will arise in case of loss of life, or you suffer disability when engaging in such activity.
2. Alternative Coverage For Hazardous Activity
While traditional life and disability policies exclude hazardous activities from their list of protections, you could still get life coverage if you are willing to pay the cost.
Life coverage for risky individuals may not be very different from normal coverage. The main difference is the cost of premiums you pay. So if you are planning to engage in a risky activity such as skiing, you must be upfront with your insurance provider to avoid voiding your policy or being charged with fraud.
In most cases, they will tailor-make a policy for you based on the risks involved. But you will need to dig deeper into your pockets which is worth it, considering that you will not have to worry about what happens to your beneficiaries when you are gone.
3. Determine How Long You Need To Have The Policy
There are two options to choose from when buying life insurance; term life insurance or full life insurance. Term life insurance covers a specific time that can be anything from 10 years upwards. Under term insurance, beneficiaries receive payment when death occurs within the covered period.
For example, if a ten-year term policyholder dies within ten years of carrying the insurance coverage, their beneficiaries will receive compensation. If death occurs one day after the lapse of ten years, they cannot collect payment.
The second and more costly option is the whole-life option. Whole life becomes even more expensive when the policyholder has opted to have hazardous inclusions on their policy.
Final Words
Carrying life insurance at any point in your life is an excellent way of ensuring your dependent’s future is secured. This is especially true when living your life on the edge. But as stated in this article, insurance for high-risk individuals may be relatively different in terms of cost, but worth every dollar you pay.
