Life insurance for Race Car Drivers [2022]

Get insured no matter what your occupation or hobby is!

12 minute read
Originally published: July 19, 2022

Life insurance for race car drivers

Life insurance for Race Car Drivers [2022]

Get insured no matter what your occupation or hobby is!

12 minute read
Originally published: July 19, 2022

Can I get life insurance if I am a race car driver canada

Getting life insurance for race car drivers is possible! In fact, you can get life insurance if you are involved in motorsports, or any kind of extreme sport you participate in. Motorsports and car racing are widely popular and are a growing hobby and even occupation for many people. If you are involved in an extreme sport like being a race car driver, or any kind of motorsports, it is absolutely crucial that you have life insurance to protect your loved ones in case the unpredictable happens. In this blog post you will find out that there are many great types of life insurance available for race car drivers, how racing can affect your life insurance coverage, the cost of life insurance for race car drivers and much more!

Race car drivers can get life insurance in Canada. If you are someone who participates in car racing or any kind of motorsports, you can definitely get life insurance coverage! Luckily, there are many Canadian life insurance providers who do offer life insurance coverage to race car drivers.

Can I get life insurance if I am a race car driver canada

Yes, you can get life insurance if you are a race car driver or are involved in motorsports! At Protect Your Wealth, we are here for you to help you navigate your options and choose a policy that suits your needs. 

What is considered as car racing or motorsports by life insurance companies?

There is a list of things life insurance companies always consider for most applicants when it comes to a traditional life insurance policy, such as a term life insurance policy or a permanent life insurance policy. First of all, when applying for a traditional life insurance policy, they will always look into medical and personal factors. 

To start with the basics, these are the general considerations that will be considered for your life insurance coverage if you choose to go with a fully underwritten life insurance policy:

  • Weight
  • Age
  • Gender
  • Smoking status
  • Personal health history
  • Family health history
  • Attending Physician Statement (APS)

There are also a number of additional factors that are also considered by life insurance companies such as:

For race car drivers there are many specific things that life insurance companies will look into. 

  • Do you currently have a competition driver’s licence? Which organization did you get your license from? 
  • Have you ever been to a driving school of any kind? If so, what school?
  • How long have you been in competitive racing? 
  • When was your last race? Where?
  • What sort of course or track do you race on?
  • (Off-road, dirt, oval, simulated road, etc.)
  • How far do you go to compete?
  • How often do you compete?
  • Do you intend to compete abroad or have you ever competed abroad? 
  • Do you intend to compete in a new category of racing?
  • Do you intend to or have you ever engaged in any driving stunts?
  • Is racing your primary profession?
  • What speed are you going while racing? 

How does racing or motorsports affect life insurance coverage?

If you are a race car driver or participate in motorsports, there are many different ways that your life insurance coverage will be affected. After the basic personal, medical, and racing questions are asked, your life insurance provider will then look into figuring out a life insurance rating for you. Basically, a life insurance rating is the prime factor that decides how much of a risk you are to insure. Thus, it will decide the cost of your life insurance premiums, plus the eligibility for the kinds of life insurance policies you can apply for. A life insurance broker can help speed up this process as they are able to determine the various life insurance policies and companies that will provide you with life insurance coverage. 

Being a race car driver or being involved in motorsports can affect your life insurance coverage because of how risky of an activity or occupation it is. For most life insurance companies, race car drivers don’t have to worry about getting a high rating. Typically, a lot of race car drivers can get a standard rating for an underwritten life insurance policy, but sometimes there might be a yearly charge of around $5 to $7.50 per year per thousand dollars of coverage you have. For example: if you have a $250,000 life insurance coverage and if it is decided that you need to pay an extra $5 per thousand in coverage amount then every year you will have to pay an extra of $1,250. There are also some exclusions that are at the discretion of the life insurance company. These are typically some clauses on your life insurance policy and/or some exclusions to the type of life insurance policy you can get, eg: you might be excluded from a disability insurance rider.

What are life insurance ratings? 

As part of the application process for life insurance, you will have to go through an underwriting process that will result in you getting a rating. There are three ratings standard, substandard, and preferred. Underwriting is the process an insurer uses to rate you and determine your individual risk factor. Every major life insurance company in Canada has its own underwriting guide, which essentially outlines the evaluation process for applicants.

The underwriting process usually includes a medical exam that looks at the applicant’s medical history as well as the medical history of the applicant’s immediate family. Depending on the amount of insurance, age, and initial investigations, underwriters may ask for a more thorough examination.

Even though the majority of medical exams are simple, it is possible that certain tests, such as blood and urine tests, an attending physician’s statement (APS), and other questionnaires, will need to be completed.

The applicant may receive a rating from the insurer, which has an impact on the policy premiums. The applicant is given a high risk level if the insurer finds that they are in poor health. But there is a fairly wide range that is regarded as normal. The applicant might be given a preferred (lower) rate if their health is better than average. Your eligibility for different insurance plans and the cost of your premiums are affected by these ratings.

What is considered as extreme sports?

These are the following extreme sports or hazardous activities are considered by life insurance companies when applying for life insurance. Participating in any of these extreme sports will have some effect on your life insurance but nonetheless you can in fact get life insurance in Canada if you participate in extreme sports or hazardous activities.

Life insurance options based on risk rating

Types of life insurance for race car drivers

Luckily, race car drivers tend to have a great chance at getting a traditional fully underwritten life insurance policy. Fully underwritten life insurance policies are available as term life policies or as permanent life policies. This being said, these fully underwritten life insurance policies are the most attractive policies because they are affordable and they have a much higher coverage amount. 

Although many life insurance companies in Canada offer fully underwritten life insurance policies for race car drivers, there are some people who might not get a traditional life insurance policy because they might have too high of a rating. For these people, there are other great life insurance policies including simplified life insurance and guaranteed issue life insurance. These life insurance policies can also be affordable and do have good life insurance coverage amounts but they don’t do an extensive examination on your life and health like a fully underwritten policy does. Below are the descriptions of each of the types of life insurance and the pros to them. 

Differences between fully underwritten, simplified, and guaranteed life insurance

What is term life insurance? 

Term life insurance is a type of life insurance that pays out to your beneficiaries if you die during the term of your policy. You can specify how long your term policy will last. Insurance companies provide term life insurance for Canadians and those legally residing in Canada for 10, 15, 20, 25 or 30 years. Once the term expires, you will be able to renew your policy but there will be an increase in the premiums you pay. For example, if you purchase a 10-year term life insurance policy and you die during those ten years, the people you name as your beneficiaries will receive a tax-free payment (also called a death benefit).

Pros of term life insurance 

  • In the event of your death or disability, you and your family will have financial security

  • Significantly less expensive than whole life insurance policies

  • Policy terms that can be tailored to your specific requirements

  • Your rates will never change once you’ve locked in your policy

  • Death benefit is guaranteed

What is permanent life insurance? 

Permanent life insurance is also known as whole life insurance because it covers you for the rest of your life. It also provides your beneficiaries with a tax-free payment after your death. Some plans have the ability to accumulate cash value over time. Permanent insurance costs are typically guaranteed not to rise from the time the policy is purchased. Furthermore, some permanent insurance plans allow you to pay for a limited period of time and then never again. Other types of permanent life insurance to consider include universal life and participating life.

Pros of Permanent life insurance

  • Permanent Life Insurance is a policy that lasts your entire life

  • Additional key benefits include fixed premiums for the lifetime of the policy

  • Cash value that can be used to borrow against your policy and investment

  • Three types of permanent life insurances to choose from depending on your needs: whole life insurance, universal life insurance, and participating life insurance

What is simplified issue life insurance

Simplified life insurance is offered in permanent life and term life insurance forms. Medical exam is not required for simplified issue insurance policies, but you must answer certain health-related questions as part of your application. In return for no medical exam, premiums tend to be higher than traditional insurance. The number of questions asked varies by insurer and also by whether or not the policy is deferred. Simplified issue insurance is typically used for term life insurance products and is an option for those who want faster approval or do not want to take a medical exam. There are less coverage amounts and there are also higher monthly premiums with simplified plans.

Pros of simplified issue life insurance

  • No medical exam needed

  • Offered in term life insurance and whole life insurance options

  • People who have health issues and high risk lifestyles can get insured

  • Comparable coverage rates to term life and whole life insurance plans

What is guaranteed life insurance (no-medical life insurance) 

These plans don’t ask any questions and don’t require any medical exams. Guaranteed issue insurance is intended for people with serious health problems or who are older and do not qualify for underwritten or simplified insurance. Many insurers will also offer a 24-month deferral period for guaranteed life acceptance insurance. Because it is also a type of permanent life insurance, guaranteed issue insurance coverage generally has a maximum of $50,000, with some insurers covering less, and has the highest premium of the three.

Pros of guaranteed life insurance

  • No medical exam needed

  • All health conditions and risky lifestyles are accepted

  • Easy to obtain

  • Can offer up to $50,000 which is great for those who are rejected from underwritten policies

Cost of life insurance for race car drivers 

There are some great prices when it comes to traditional fully underwritten life insurance policies, and luckily, race car drivers can get a fully underwritten policy. Due to the high level of risk involved, participating in motorsports or driving race cars will have a bit of an impact on your life insurance coverage. Race car drivers generally don’t have to worry about receiving a high rating from life insurance companies, but there may be a yearly fee of $5 to $7.50 per year for every $1,000 of coverage. This is purely due to the fact that your occupation or hobby as a race car driver carries a higher risk associated with insuring you. For example, if you have a $250,000 life insurance policy and it is decided that you must pay an additional $5 per $1,000 of coverage, you will have to pay an additional $1,250 each year.

If you’re thinking of traditional life insurance policies, there are great rates of people who are interested in a term life insurance policy and the cost is quite affordable, so even with the yearly fee it is quite affordable. These are some of the average rates for 40 year olds, non-smoking, who are seeking a 20 year term life insurance policy:

$250,000 Coverage

Monthly rates for a 10-year term life insurance for a 40-year old seeking $250,000 in coverage for male/female smokers/non-smokers from different companies.

$500,000 Coverage

Monthly rates for a 10-year term life insurance for a 40-year old seeking $500,000 in coverage for male/female smokers/non-smokers from different companies.

$750,000 Coverage

Monthly rates for a 10-year term life insurance for a 40-year old seeking $750,000 in coverage for male/female smokers/non-smokers from different companies.

There is also a very attractive simplified life insurance option that is available for race car drivers who are looking for life insurance. The application process for simplified issue insurance policies does not call for a medical exam, but it does ask you to provide answers to a few health-related questions. Premiums are typically more expensive than those for traditional insurance in exchange for no medical examination. Depending on whether the policy is deferred or not, and depending on which insurer you choose, different questions may be asked. Term life insurance products typically use simplified issue insurance as an option for those who want a quicker approval or don’t want to undergo a medical exam.

Cost of simplified life insurance

Best life insurance for race car drivers 

The best life insurance for race car drivers or those who participate in motorsports might honestly vary depending on your lifestyle and particular needs and wants in a life insurance policy. To be frank, a traditional fully underwritten term life insurance or a permanent life insurance policy is superior to the other policies but that doesn’t mean they are the right options for everyone. Overall, you will find amazing rates, great riders, and higher coverage options in traditional fully underwritten policies but simplified life insurance also offers similar coverage amounts and does have some riders as well with affordable rates. When it comes down to it, the best thing to do is to consult a life insurance broker and have a needs assessment done to find out what your needs are but also what your life insurance options are.

What happens if I take part in car racing or motorsports when I already have life insurance?

It can be very risky for your life insurance benefit if you already have a life insurance policy and you start engaging in hazardous activities such as car racing. Although developing health conditions while insured has no effect on your life insurance coverage, dying while participating in a risky sport may prevent your life insurance company from paying your beneficiary their insurance benefit. Accidents do occur, and if you don’t engage in risky activities frequently, this most likely won’t have an impact on your life insurance benefit. It is highly recommended that you check in with your life insurance provider if you already have life insurance and regularly participate in a dangerous sport to see how this might affect your policy and benefit. Canadian life insurance companies cannot revoke or change your life insurance coverage or policy once it is effective, but there are many exclusions and clauses in life insurance policies. 

Frequently Asked Questions (FAQs) about motorsports and life insurance

 

Yes, there are many hazardous activities and extreme sports that are covered by life insurance! This being said, there are some exclusions, and there can be an increase to your premium depending on several factors. Luckily, most insurance companies will insure you if you take part in a hazardous activity or extreme sport.

Yes, there are some factors that life insurance companies consider before insuring someone who takes part in hazardous activities. Your life insurance will be affected in the underwriting process because they will consider a variety of factors such as but not limited to: 

  • How often do you take part in the listed hazardous activities (frequency)
  • How risky is the activity (risk factor)
  • Some insurance companies will consider how much altitude you gain when participating in an activity such as skydiving, climbing, and snowboarding
  • Your experience in said activity
  • Are you certified in the said activity? eg: do you have a scuba diving certificate? 
  • Your personal medical history 
  • The location where you participate in the activity 
  • The terrain of where you participate in the activity

This is a list of extreme sports that are considered hazardous activities by most life insurance companies:

  • Snow sports
    • Skiing
    • Snowboarding
    • Snowmobiling
  • Skydiving
  • Sport aviation
  • Climbing
    • Rock
    • Ice and snow
    • Mountain climbing
  • Scuba diving
  • Motor vehicle racing

This list doesn’t include all possible hazardous activities, but if the hazardous activity that you participate in is not mentioned by your life insurance provider, it is best to notify them of your hobby in order to not have any issues with your life insurance policy and benefit in the event of your death. 

There are simplified life insurance policies, guaranteed life insurance policies, and fully underwritten life insurance policies available for people who participate in a hazardous activity. You are certainly not limited to your options as someone who takes part in extreme sports and hazardous activities. Try to remember that even though there are guaranteed policies which will insure you without extensive questioning, you are likely to be able to have a fully underwritten life insurance policy as well. 

Yes! Of course you can get life insurance if you participate in extreme sports or a hazardous activity. There are plenty of different insurance policies that are suited to fit your needs and wants. This being said there are companies that may have some exceptions and clauses that they will add to your insurance policy but in most cases people who are involved in hazardous activities or extreme sports will find themselves able to acquire a life insurance policy with relative ease. 

Yes! You can get life insurance if you participate in car racing or motorsports. There are awesome options for the life insurance policies you might want. There are plenty of policies that cater to everyone. 

Yes you can, though it might seem daunting to have a DUI on your record, it is completely possible to get a life insurance policy at an affordable rate. There are also no medical life insurance policies that can cover you with no questions asked.

A DUI will affect your life insurance application’s approval status, and how you will be rated for your insurance premiums. The more recent your DUI charge, the less likely you’ll be able to be approved or the more you will have to pay for your premiums. Most insurers will require a minimum of 6 months after a DUI charge, but some will require longer periods of time before you can apply. The number of DUIs you have received over a number of years is also taken into account for your ratings for premiums. Typically, the more DUIs you have, the higher your rating and premium costs. Another thing to note is that insurers will not consider your application if your license is currently suspended. Your driving record will also be taken into account during the life insurance application process. Underwriters will require a Motor Vehicle Report or questionnaire, which will ask about driving infractions (traffic offenses), DUI charges, and license suspensions.

In Canada, you can apply for traditional life insurance after a DUI from anywhere from 6 months to 2 years, depending on the insurer. If you’re looking for a faster and easier approval for life insurance, guaranteed issue or simplified issue may be for you. These insurance options ask less questions with their applications and are generally more lenient, especially guaranteed issue policies. Note that these will still look at your driving record and history, but they will treat it differently from traditional fully underwritten policies, and will be more expensive than your regular policies. If you’re looking for fast coverage but aren’t sure which to start with, speaking with one of our advisors can help you find the right coverage for your circumstances.

Finding the right life insurance plan for you

It is completely possible to get life insurance if you are a race car driver or are in motorsports, there’s an affordable life insurance product or package for your situation. A life insurance specialist can help you create the best plan and package for your needs.

At Protect Your Wealth, we work with and compare policies and quotes from the best life insurance companies in Canada to ensure the best solution for you and your needs. We provide expert life insurance solutions, including no medical life insurance, critical illness insurance, term life insurance, and permanent life insurance to build the best package to give you the protection you need. 

Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, and Alberta including areas such as Milton, Victoria, and Edmonton

Talk to an advisor today.

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