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It's easy to assume that life insurance is just an automatic benefit your family or beneficiaries receive when you die. Many people invest a lot of money into their policies because they want to ensure that their loved ones are cared for financially in the event of their passing. Amidst the pain of grief and loss, at least your family won't have to struggle with a heavy financial burden.
"Life insurance coverage provides a financial safety net that could replace your wages, or be used to pay off your mortgage or college costs for your kids," Jean Folger writes for Investopedia. That safety net can range anywhere from $250,000 to $1 million on average, according to Cassidy Horton and Kelly Anne Smith of Forbes.
What a comfort to know that no matter what happens to you, your family will have everything they need, right?
Well, not so fast. As with many things in life, a life insurance policy isn't something you should take for granted. In fact, you may not realize it, but there are certain activities that could completely void your policy altogether.
Rather than find this out the hard way, do yourself — and your family — a favor by brushing up on some of the fine print you might have overlooked. In case you're wondering, here are a few popular activities here in Utah that could potentially cancel your life insurance policy. If you're at all concerned about leaving nothing behind for your beneficiaries, you might want to erase these off of your bucket list just in case.
Rock and mountain climbing
This one might be depressing, seeing as there are so many wonderful rock and mountain climbing opportunities throughout the entire state of Utah. But it's true — insurance companies consider rock and mountain climbing a risky activity, so it's usually not covered.
Some companies do offer mountain climbing coverage, which is good news if you're an avid climber. Just be aware that you may end up paying higher premiums.
Hang gliding and paragliding
Next time you're driving past the point of the mountain between Salt Lake and Utah County, turn your attention to the east. If the weather's good, chances are high that you'll see some hang gliders or paragliders flying around. As exciting as it looks, this popular activity definitely comes with its fair share of risks, so most insurance companies exclude it from their coverage.
The U.S. Hang Gliding & Paragliding Association reports on yearly fatalities that average about 10 per year. That may not sound like much, but it could be dangerous enough to make you think twice before making it a habit.
River rafting
Experiencing the white water in Moab's portion of the Colorado River feels like a rite of passage for a Utahn — but it might just waive your right to life insurance if it kills you.
The good news is that your chances of dying while river rafting are relatively low compared to other activities. According to Trip Savvy, whitewater boating and rafting accounts for 0.86 deaths per 100,000 episodes, which is lower than scuba diving, climbing, recreational swimming and even biking. Still, it's dangerous enough that it requires extra coverage if you plan to do it often.
BASE jumping or skydiving
By now, you're probably starting to see the pattern: The riskier an activity is, the less likely it'll be covered by your life insurance policy. So it's not a shock that BASE jumping and skydiving are included on this list. They also happen to be super popular, adrenaline-pumping activities among Utahns who are looking for a thrill. If you can't resist the urge to jump off of cliffs or airplanes, it might be a good idea to purchase a policy that covers high-risk hobbies.
Racing
Utah's motorsport opportunities have grown rapidly over the last several years, and for good reason: Driving cars really fast is fun. But yes, you guessed it — insurance companies usually don't cover this activity. If you die in a regular traffic accident, you've got nothing to worry about. But if you have the need for speed, be aware that it could cost you your policy.
Illegal activities
It may seem obvious, but it's important to emphasize that engaging in illegal activities can void your life insurance policy. If you die while committing a crime — whether it's robbing a bank or stealing a car — the insurance company is unlikely to pay out any benefits to your beneficiaries. Not only would this leave them financially devastated, but they would also have to grapple with the shame and guilt of your dishonorable actions. In short, it's a terrible idea all around — just don't do it.
Don't let all your hard-earned money go to waste
Because policies and carriers differ, one of the most important things you can do to make sure your beneficiaries receive every penny they're due upon your demise is to know exactly what your policy's exclusions are.
As Carol Pope explains for Bankrate, "Knowing what your life insurance covers may be vital. After all, some types of life insurance will cover you for your entire life — which means making premium payments for your entire life, too. As such, not understanding your life insurance exclusions could prove to be a costly mistake."
But Pope also acknowledges that it can be difficult to understand exactly what a policy does and does not cover. In cases like these, it's a good idea to seek help from a legal expert who can explain things more clearly to you.
Need legal help? Turn to personal injury lawyers at Parker and McConkie
Now that you know which activities pose a potential risk to your life insurance payout, you can be a little more cautious and mindful in the future. However, if you or someone you know has lost a loved one and the insurance companies have denied your life insurance claim, you may want to seek legal help.
The personal injury attorneys at Parker and McConkie are experts at navigating complex life insurance claims, especially when it comes to accidental death. They can provide the guidance you need to pursue the benefits you rightfully deserve.
For a free consultation, call 801-708-0029 or visit parkerandmcconkie.com. Their promise is, "If we don't win, you don't pay!"
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