Term Life Insurance Articles
How Being A Racecar Driver Affects Term Life Insurance
2010-08-24
Term life insurance covers you for a specified period of time. Racecar driver insurance rates will be set based upon the level of risk of death to the insured during the coverage period because life insurance is all about risk. The greater the risk of death during the coverage period is, the higher the cost of your term life insurance policy will be. The policy may cover 10 years, or it may cover 20 years. Either way, your occupation during those years will be a significant factor in computing the cost of a racecar driver insurance policy. Individual and family health history, driving record, credit rating and other variables proven to be of predictive value will also be considered.
A 10-year life insurance policy for an individual with a low risk occupation will cost less than the same policy for an individual with a high risk occupation. Racecar driving is perceived as a high risk occupation and, as a result, a term life insurance policy for a racecar driver is going to be more expensive than a policy for a typical office worker. In fact, some insurers may not insure racecar drivers at all. They may refer you to an insurer with a pool for high risk candidates that include people like police officers, fighter pilots, green berets, crane operators and other dangerous occupations.
A term life insurance policy may also pay out a portion of the benefit early for an insured that is terminally ill or fatally injured. Because racecar driving is inherently risky, the likelihood that the insured will require this type of payout will also be considered. The likelihood of this will be considered when setting the premium to be paid for the policy. The risk for the insurer in this case is twofold. Not only is the insurer liable to pay out the benefit for a death within the coverage period, it may also have to pay out earlier than it might have calculated. This will result in lower investment income from those funds available to the insurer.
A final consideration for racecar driver insurance with term life insurance coverage is the fact that the policy will expire at the end of the term, and the insured will need to be re-insured. Some insurers will allow a term insurance customer to be automatically re-insured, but this may not be the case with riskier professions. On the other hand, if the insured retires from racecar driving by the end of the term, he or she may not care because less costly insurance may be available after retirement.
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Term life insurance covers you for a specified period of time. Racecar driver insurance rates will be set based upon the level of risk of death to the insured during the coverage period because life insurance is all about risk. The greater the risk of death during the coverage period is, the higher the cost of your term life insurance policy will be. The policy may cover 10 years, or it may cover 20 years. Either way, your occupation during those years will be a significant factor in computing the cost of a racecar driver insurance policy. Individual and family health history, driving record, credit rating and other variables proven to be of predictive value will also be considered.
A 10-year life insurance policy for an individual with a low risk occupation will cost less than the same policy for an individual with a high risk occupation. Racecar driving is perceived as a high risk occupation and, as a result, a term life insurance policy for a racecar driver is going to be more expensive than a policy for a typical office worker. In fact, some insurers may not insure racecar drivers at all. They may refer you to an insurer with a pool for high risk candidates that include people like police officers, fighter pilots, green berets, crane operators and other dangerous occupations.
A term life insurance policy may also pay out a portion of the benefit early for an insured that is terminally ill or fatally injured. Because racecar driving is inherently risky, the likelihood that the insured will require this type of payout will also be considered. The likelihood of this will be considered when setting the premium to be paid for the policy. The risk for the insurer in this case is twofold. Not only is the insurer liable to pay out the benefit for a death within the coverage period, it may also have to pay out earlier than it might have calculated. This will result in lower investment income from those funds available to the insurer.
A final consideration for racecar driver insurance with term life insurance coverage is the fact that the policy will expire at the end of the term, and the insured will need to be re-insured. Some insurers will allow a term insurance customer to be automatically re-insured, but this may not be the case with riskier professions. On the other hand, if the insured retires from racecar driving by the end of the term, he or she may not care because less costly insurance may be available after retirement.
