Brian Gruss Licensed Insurance Planner

Dangerous Hobbies Can Increase Your Life Insurance Premiums

Do you enjoy scuba diving? How much do you love those flying lessons? Feel like going bungee jumping this weekend? If these questions fill you with a longing to go indulge in your favorite extreme sport, beware—that sport might just affect your life insurance premiums.

When underwriters review your health, hobbies and history, they are determining how much risk you pose to the insurance company. The more mortality risk you and your lifestyle present, the higher your premiums will be. It is important to also consider that the risk you pose to the insurance company is not strictly dependent on your current health or medical history. Any risky hobbies (also called avocations) you enjoy on a regular basis will also expose the insurance company to a higher risk of your death and subsequent death benefit payout.

Insurance companies know they’ll sometimes have to pay out death benefits on policyholders who have paid in very little in terms of premium from an unpredictable death caused by an unexpected illness or accident. A dangerous hobby poses a predictable threat of death supported by historical data. This allows the insurance company to quantify the risk and attach a dollar value to it.

Depending on the type of hobbies you participate in, you may find the underwriter of your insurance policy including an additional premium in order to subjugate the risk your hobby poses. That additional premium allows the insurance company to lessen the financial burden that your added risk creates.

There are many different ways that an insurance company can increase your premiums.

·   Flat Extra Premium: A flat extra premium is a flat dollar amount that is added to your premiums every month. That amount is fixed and included in your premiums for the life of your policy.

·   Table Rating: A table rating is an additional percentage of the premium you will be expected to pay each month. Again, this amount is fixed for the life of your policy.

·   Temporary Flat Extra: Like the flat extra premium, the temporary flat extra adds an additional fee to your premium but, in this case, only for a certain period of time. A temporary flat extra might be used for someone who is taking flying lessons or another dangerous activity that has a known end date.

Another option is to accept an exclusion from coverage for deaths caused by or in relation to that hobby. This could allow you to enjoy regular premiums with no additional charges, but does create the unease of having a dangerous sport go uncovered. A supplemental accidental death policy may be your solution.

Be sure to disclose your risky hobby with your Brian Gruss, so he can help you determine the best course of action.

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Patriot T.R.I.P.^®
Travel Protection for trips up to 30 days

Patriot T.R.I.P. helps protect travelers who are unable to travel or are interrupted during their covered trip due to circumstances such as a sudden and unexpected illness or injury, death in the family, jury duty, job layoff, terrorism or the bankruptcy of the tour operator, cruise line or airline. Benefits also include coverage in the event of travel and baggage delay, lost baggage, emergency medical expenses, emergency medical evacuation and more.

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When you’re between permanent health insurance plans, COBRA coverage isn’t your only option.  Get the financial protection you need, often
at a lower cost, with Short Term Medical temporary insurance.  Often less costly than COBRA even with  the current government subsidy,*
a Short Term Medical plan is the ideal way to fill a gap in permanent health coverage:

• Between jobs
• Waiting for employer benefits
• Temporary or seasonal employees
• Newly independent

After a job loss, you might think you can’t afford insurance. But an unexpected illness or injury can strike anytime and leave behind devastating bills. Look at some examples of what you might pay for these injuries and illnesses without the protection of Short Term Medical.
Injury/illness Charges

• Injuries from a motor vehicle accident $165,818
• Broken leg from a fall $19,629
• Pneumonia $128,268
• Bicycle accident $337,404

These numbers are based on submitted claims.

Short Term Medical makes it easy to protect yourself from unexpected high medical bills.

• Answer just a few questions to apply
• Coverage as early as tomorrow
• Plan durations of 30 to 360 days (varies by state)
• Flexible plan and payment options
• You choose or keep your own doctors

Talk to Brian today about covering your insurance gap with Short Term medical today!
Even a short time without insurance  is not worth the risk!!!

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