I am going to be a dad for the first time in a couple weeks and I am looking to get a life insurance policy to cover me while racing. When I tell them what I do, either they say I am covered with the standard policy (as long as I am not a professional and don't get paid to race). This concerns me though as I had a friend killed racing and the insurance co. would not pay his family because it happened racing. The other scenario is the premiums are outrageous, to the tune of $109/mth for a 250K policy.
Any suggestions to where I can get insurance would be greatly appreciated.
Thanks
Vinny:
If you currently have life insurance with a private company (not through work) and you are past the "contestibility period" you should be OK.
The contestibility period is one to two years after issue depending on your state. During this time if you were killed and failed to disclose your racing activity, the insurance company could refuse to pay and just refund all premiums paid for the policy. After the contestibility period, the insurance company doesn't have much of a leg to stand on to deny a claim.
When looking for additional life insurance for Paul, through a private carrier I would have had to pay an additional $2.50 per $1000 annually to cover his racing activities. Instead, I went though his Union and secured additional term life insurance. Since this is considered a group policy, I had no need to disclose his racing activities, nor is his racing excluded.
My suggestion would be to look to your employer for additional coverage (if available). Having a child is a life event that should allow you to change your coverage even if you had to enroll for coverage earlier in the year.
I hope this helps.
Good luck and congratulations.
Dawn ;)
Thanks for the info Dawn,
Unfortunatly I do not have a existing insurance policy other than my work policy, currently I have the max allowed which is not that much.
The group policy sounds like the way to go. I will keep checking.
Thanks again.
Paul