When it comes to helping professional or amateur racers find a quality life insurance policy that they can both qualify for and afford, there are a few important things to keep in mind.
Firstly, not all racers are like the ones you see on TV, dressed in suits and covered in sponsors. And secondly, not all life insurance companies are enthusiastic about ensuring someone with a passion for going as fast as humanly possible!
That’s why we wanted to take a moment and answer some of the most common questions we get from folks who are looking to purchase a traditional life insurance policy as a professional or amateur race car driver.
These questions include:
- Can I qualify for life insurance if I am a professional or amateur race car driver?
- Why do life insurance companies care if I am a professional or amateur race car driver?
- What kind of information will the insurance companies ask me or be interested in?
- What rate (or price) can I qualify for?
- What can I do to help ensure that I get the best life insurance for me?
So, without further ado, let’s dive right in and answer these questions.
Can I qualify for life insurance if I am a professional or amateur race car driver?
Yes, you can qualify for life insurance if you are a professional or amateur race car driver. However, your occupation and hobby can impact your ability to obtain coverage and the rates you are offered.
Life insurance companies assess risk based on a variety of factors, including your age, health, lifestyle, and occupation. Some insurance companies may view race car driving as a high-risk activity due to the potential for serious injury or death. As a result, they may either decline coverage or offer coverage at higher rates.
However, there are insurance companies that specialize in providing coverage for individuals in high-risk occupations or hobbies, including race car drivers. These companies may offer coverage at more affordable rates and with less strict underwriting requirements.
To qualify for life insurance as a race car driver, you may need to provide information about your racing experience, including the type of car you drive, the level of competition you participate in, and any safety equipment or training you have received. You may also need to undergo a medical exam to assess your overall health and risk factors.
Why do life insurance companies care if I am a professional or amateur race car driver?
Life insurance companies care if you are a professional or amateur race car driver because your occupation and hobbies can impact your life expectancy and overall risk profile. Insurers use this information to assess the likelihood of paying out a death benefit and to determine the rates they will charge for coverage.
Race car driving is considered a high-risk activity due to the potential for serious injury or death. Life insurance companies may view this as a factor that increases the likelihood of a payout and therefore increases their risk. They will evaluate your occupation and hobby as part of their underwriting process to determine your overall risk profile and to decide whether to offer you coverage and at what rates.
In addition to race car driving, other high-risk occupations or hobbies that may impact your life insurance rates include skydiving, scuba diving, rock climbing, and aviation. These activities may require specialized coverage or may result in higher premiums due to the increased risk they pose.
Overall, life insurance companies care about your occupation and hobbies because they want to accurately assess your overall risk profile and determine appropriate rates for coverage. It’s important to be honest and upfront about your activities and hobbies when applying for life insurance to ensure that you receive accurate rates and coverage.
Professional vs. Hobby Race Car Drivers
It may seem like a professional race car driver will have an easier time getting insured than a hobby race car driver. However, that’s not necessarily true. The sport is so dangerous, and there are things to consider.
- A professional driver may take more risks than a hobbyist because they are more confident. As a result, they are still at a high risk of a deadly crash.
- Professionals engage in high speed, driving much more often.
- However, a professional is more likely to wear and use safety equipment to survive a crash.
- Head and Neck Support (HANS)
- Fireproof clothing made of fire-resistant fiber
- Rollover protection in the car
- Safely designed bucket seats with thigh support
- Proper restraints (seatbelts) with a 4-point harness, 5-point harness, or 6-point harness
- Safety Nets
- Fire Suppression
- A master cut-off switch to prevent electric shock
Some other devices and precautions may make driving a professional race car even safer.
This is why before being approved for coverage, one should expect to be asked quite a few questions about their race car driving so that the insurance companies can get a better idea about what “kind” of risk you will pose to them should they decide to approve your application.
What kind of information will the insurance companies ask me or be interested in?
When applying for life insurance as a race car driver, the insurance company will likely ask you for information related to your racing activities. This information will help the insurer assess your risk profile and determine the rates they will offer for coverage. Some of the information they may ask for includes:
- Type of racing: The insurance company will want to know the type of racing you participate in, such as drag racing, stock car racing, or Formula One racing. Different types of racing have varying levels of risk, and this information will help the insurer understand the specific risks associated with your racing activities.
- Level of competition: The insurance company will also be interested in knowing the level of competition you participate in, such as amateur or professional racing. Professional racing may be viewed as a higher risk than amateur racing due to the increased speed and competition involved.
- Safety equipment: The insurer may ask about the safety equipment you use when racing, such as helmets, fire suits, and seat belts. This information will help them understand the level of risk associated with your racing activities and may impact the rates you are offered.
- Training and experience: The insurance company will want to know about your training and experience as a race car driver. This includes any specialized driving courses you have taken, your racing experience, and any awards or recognition you have received.
- Medical history: Finally, the insurance company may ask about your medical history, including any injuries or illnesses related to racing or otherwise. This information will help them understand your overall health and risk profile.
Overall, the insurer will want to gather as much information as possible to assess your risk as a race car driver and to determine the rates they will offer for coverage
What rate (or price) can I qualify for?
As one can see, there are many variables about one’s race car driving that can affect the outcome of one’s life insurance application. It’s also important to remember that other factors such as one’s age, health, and family medical history will also likely play a role in determining your “rate” as well.
Which is why…
It’s basically impossible to know for sure what “kind” of rate (or even if you’ll be able to qualify for coverage at all) until we’ve had a few moments to speak with you directly.
That said, however, there are a few “assumptions” that we can make about how most life insurance companies will “view” race car drivers which will generally remain true, which we can now discuss so that you may gain a better idea about what “kind” of rate you may be able to qualify for.
Most race car driver applicants will fall into one of three different categories. There will be those who are “deemed” uninsurable either because the form of racing is considered too dangerous or their passion for racing has created a series of other “issues” preventing them from qualifying for a traditional life insurance policy (think suspended license).
The second group…
Of individuals will be those who can qualify for coverage but will be required to pay a “flat extra” surcharge on top of whatever “normal rate” they are approved for. This flat-extra rate can become quite significant at times, particularly when applied to a larger life insurance policy.
Some individuals may be approved for a traditional life insurance policy with an auto racing exclusion, which would state that their life insurance policy would not be enforceable if you died while participating in any kind of auto racing activity. The benefit here would be that you would not be charged extra for your insurance, and you may be able to purchase an Accidental Death Policy, which would provide coverage to you in the event that you did die while racing.
*** Important Note ***
While Accidental Death Policies are designed to provide coverage against dying in an accident, many will have exclusions for deaths caused by participating in dangerous activities such as auto racing. For this reason, please be sure that you confirm with the insurance company directly that you would be covered if you died while racing a vehicle.
What can I do to improve my chances of purchasing the “right” life insurance policy for me?
In our experiences here at IBUSA, we’ve found that usually, the “best” approach in helping someone find the “best” life insurance policy for them is to first:
- Fully understand what an individual is trying to achieve by purchasing their life insurance policy.
- Are you looking to:
- Cover the cost of a mortgage?
- Replace lost wages?
- Protect a child or spouse?
- Or just cover one’s final expenses?
- Are you looking to:
- Then provide one with plenty of options to choose from so that you’re not limited to just one or two different options.
This is why…
We here at IBUSA choose to work with so many different life insurance companies so that when it comes time to help you decide “which” life insurance company is going to be the best for you, we don’t have to apply a…
“One Size Fits All”
Approach. Instead, we can make dozens of different life insurance companies compete for your business.
So, what are you waiting for? Give us a call today and experience the IBUSA difference.