How hazardous activities or hobbies impact life insurance ratesThe Life Insurance Price Index, from Policygenius, displays average monthly life insurance rates using current data from leading life insurance carriers
NEW YORK, July 14, 2021 /PRNewswire/ — Policygenius, the leading tech platform for financial protection, announced today the July data release of the Policygenius Life Insurance Price Index, which displays average monthly life insurance rates using current data from leading life insurance carriers. New data from this free index is published on a monthly basis to illuminate pricing trends for consumers. In this month’s index, analysts took a look at how scuba diving, a popular summer vacation activity, impacts life insurance rates.
A report from AAA estimated that about 47 million Americans traveled over the Fourth of July weekend, a 40% increase from last year. Vacationers planning outdoor activities and ocean adventures may not be aware of how those activities can impact their life insurance rates.
Hazardous Activities or Hobbies
Life insurance applicants who frequently participate in hazardous activities or hobbies, like scuba diving, can expect to pay higher life insurance rates to offset the risk of an accident. Most recreational scuba divers, such as those who only scuba dive on vacation, pay the same rates as their non-scuba diving counterparts. But technical scuba divers, who dive at slightly greater depths and frequency, end up paying up to 78% more for average monthly life insurance premiums.
“As with any extreme sport, scuba diving can impact your life insurance premiums if you do it frequently enough that insurers consider it an added risk,” Jennifer Fitzgerald, CEO and co-founder of Policygenius, said. “That said, the majority of people who recreationally dive on vacation won’t see an impact on their life insurance rates because of it, so summer travelers can feel free to enjoy themselves. If you’re not sure what category you fall into, working with an independent broker can help you understand your options.”
Insurance rates can vary as the market fluctuates, as well as when a shopper’s personal profile changes. Life insurance prices are primarily based on life expectancy, factoring in personal details about an individual, including age, medical history and hobbies. Prices also depend on the length of a policy and on the coverage amount a consumer opts to get.
The prices included in the Policygenius Life Insurance Price Index are based on internal actuarial rate tables for 11 of the life insurance carriers that offer policies through the Policygenius marketplace. The prices represent the average monthly premium for each sample customer profile (age, gender) and policy type (term, coverage amount) as of the most recent publication date.
Overall, there were no significant changes to life insurance prices from June 2021 to July 2021. The biggest pricing fluctuation was an insubstantial 0.7% increase in average monthly premiums, seen by 55-year-old male nonsmokers purchasing a $250,000 policy.
Policygenius is the leading tech platform for financial protection, from insurance to wills. Since launching in 2014, Policygenius has helped more than 30 million people shop for all types of insurance and has placed over $100 billion in coverage. Policygenius is an insurtech pioneer known for its emphasis on digital convenience and consumer education. The company has received numerous accolades including four consecutive years as an Inc. Magazine Best Workplace, being named to the Forbes Fintech 50 and winning a Bronze Stevie Award for customer service.
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1 Monthly averages are based on 11 products available through Policygenius for the indicated profile; rates for those products may vary by state, and not all products are available in all states. Individual rates may vary, depending on age, gender, state, health profile and other eligibility criteria.