Rider: Lance Kobusch & Father | 2016 Mini O's | Photo: Courtesy of Racer X - Collin Speckner

There are a lot of ‘instant’ life insurance quote tools out on the internet. Almost 100% of the time these numbers reflect the best case rate, with no added cost factored in for your life and how you live it.  Before you waste your time, below you will find four important things we think you should know while searching for a life insurance policy...especially if you are racing and or riding.

  1. When you apply for coverage there are many factors that can affect the outcome of your rate:  age, height, weight, tobacco usage, family history, present/past health conditions, occupation and avocations like racing, riding, scuba diving, aviation, and more.
    • Some additional cost factors for racing and riding will go as far as amateur licensed, professionally licensed, top speed, avg. speed, horsepower, asphalt racing, dirt racing. This is just to name a few!
  2. Term life insurance is the most popular form of life insurance we offer to riders and racers.  It is simple to understand; it’s the least expensive of the options, and you get a level premium and a level benefit amount for the length of the term locked in at the age you apply.
    • If your health improves, then you can simply re-apply for a better rate.
    • If you participate in new sports in the future, your in-force life insurance rates are not affected.
    • If you stop participating in a sport, then you can re-apply for a new policy and possibly save money.
  3. When most people think of life insurance applications they associate it with a physical exam.  That is not always required.  There are new cutting edge products out there that are called simplified issue. What this means, is if you meet certain requirements, then you are not subject to a physical exam and the application can be simply approved in as quick as 3 days with just an application!
    • An important thing to mention is that simplified issue underwriting not only saves you time but with the different underwriting requirements it can save you a lot of money in certain situations when it comes to racing, riding and other high-risk sports.
  4. Flat Extra is a term most high-risk sports participants will learn about when they apply for life insurance.  Flat Extra is the additional cost added to a policy premium to cover a higher risk associated with your hobby or occupation.  The most common Flat Extra amount is $2.50 and $5.00.  This dollar amount is added to the base premium at the Flat dollar amount per $1,000 of benefit.  Example: If you have a base premium of $500 a year for $1,000,000 in coverage, and you get a flat extra rating of $2.50 factored in. Then you will be charged an additional $2,500 a year to cover the added risk.
    • There are multiple scenarios that will calculate a different Flat Extra.  The first scenario is going to be the factors mentioned in bullet 1.
    • The second main factor will come down to what underwriting manuals the insurance carriers are using at that given time you are looking to apply.  We wish the carrier's underwriting manuals would stay consistent, but they are constantly changing.

Get it right the first time:  Request our help today to get a quote and discuss your life insurance needs.

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