Competitive motorcycle racing either on the drag strip or the dirt track present a high risk situation when applying for life insurance for motorcycles racers. But, this does not mean that you have to pay high life insurance premiums. You have to apply with a life insurance company that offers the lowest rates for competitive riders and is the least sensitive toward the motorcycle racing sport in general. There is a considerable difference between one company and another when it comes to their opinion of just how hazardous motorcycle racing really is and how the rates should be adjusted. You will always get the best rates from a company that is not intimidated by the racing sports. That is why choosing the most applicable company is so very important.
This is where an experienced life insurance broker who is experienced in high risk sports comes into the picture. Whatever your specific form of motorcycle racing actually is, there is an affordable life insurance policy for your needs. I personally have a lot of hands on experience in Motorsports racing and I understand what the classes are all about, whether it is anything from a 125cc dirt bike class to a 1000 HP Top Fuel Harley drag bike to Motocross or Supercross, you are able to purchase high quality life insurance from a number of trusted carriers.
This article is going to be about life insurance for motorcycle racing and how to get the lowest rates possible. Just keep on reading and you will see that this is not a complicated manner and securing life insurance with highly trusted life insurance companies is not going to be a problem.
If you are an amateur or a professional motorcycle racer, you can purchase life insurance at very affordable rates. Here is how it all works.
Tip #1 When you apply for life insurance for motorcycles racing there is no such thing as a special policy designed just for motorcycle racing. All you would be doing is applying for a conventional Term life insurance policy just like anyone else would whether your sport is tennis or golf. The application process is exactly the same where all the other specifics come into the picture such as your age, health history, driving history, tobacco use or not, height and weight, prescription medication taken and so forth.
Tip #2 Plant this in your mind because here is where the difference comes into the picture. The only difference is when you have a hazardous sport like motorcycle racing, the life insurance companies can add a separate fee called a “flat extra” charge to cover the additional risk they are taking for the motorcycle racing. This flat extra charge will depend on what type of motorcycle racing you actually do.
Here is exactly how the life insurance companies calculate the rates for a motorcycle racer.
Your flat extra charge will depend on these main factors:
* The class of racing you fall into such as “Pro Stock Drag Bike”.
* The maximum speed you reach when racing.
* The type of fuel your motorcycle uses.
* The elapsed time your motorcycle runs in.
* The type of track you race on.
To be covered racing motorcycles on the race track or simply excluding the act of racing will be a judgement call you will have to make for yourself.
You have two choices to make and these would be do you want to be covered while you are riding down the racetrack or do you want to exclude the actual racing exposure all together .You can choose a company that will exclude the racing portion of the policy where they would add an exclusion rider. If you go this route there will be no extra charge for the life insurance. This would mean you would not be covered if you lost your life racing. For some people this will be what they choose but most racers want to be covered while they actually ride down the track.
If you are like most people and want to be covered while they are racing, then a “flat extra” premium would be added to the base rate of the policy and here is how the premium is calculated.
We will use an example of a 30 year old male named Bill Ryan who wants to apply for life insurance and be covered while racing. Bill wants a 20 year Term life insurance policy with a face amount of $100,000. The base rate of the policy would be $800.00 per year for this policy. The base rate is just the normal premium that he would pay if there was no racing involved. The motorcycle Bill rides is just a simple bracket racer that runs mid 10s in the 1/4 mile. In this case, Bill receives a $2.50 per thousand dollar flat extra to cover the added risk of the racing. The premium breakdown would be $2.50 X 100 for the face amount of $100,00 and the flat extra charge is $250.00. We would then add the $250.00 flat extra charge to the base premium of $800.00 for a grand total of $1050.00.
If our motorcycle racer Bill decides to go with a higher policy death benefit otherwise known as a face amount such as a $250,000 policy, then the flat extra would increase by using this calculation. $2.50 X 250 for the $250,000 policy the flat extra would become $625.00 which would then be added on to the base premium of $800.00 for a new grand total of $1,425.00 per year. This is how the premium is calculated when applying for life insurance for motorcycle racers and all other types of racing also.
Your face amount otherwise known as a death benefit will be one of the main factors that will dictate your life insurance premiums.
Simple common sense will tell you that when a person applies for life insurance and requests a death benefit of $100,000, the premium will be much less that a person who is requesting a $500,000 death benefit or $1,000,000. I you are unsure of what you really need as a face amount you are welcome to use our face amount calculator. This will give you a good idea to understand how much life insurance you will need by calculating what your survivors will require if you pass away and your income no longer comes in each month. One of the most important questions you have to ask yourself is how much of a life insurance premium can you afford to pay comfortably on a monthly or annual basis.
If you need life insurance, apply as soon as possible due to the fact quoting rates goes up with each year as you get older.
Feel free to contact us 7 days a week and we will pre-screen your health conditions if you have any along with your motorcycle racing specifics so you have an accurate expectation of what to expect if you actually applied. There is never any cost or obligation for our help. Thank you very much for visiting our website and taking the time to read our blog post. We hope this post answers some of your questions and makes you a better life insurance shopper. If you are a professional or an amateur motorcycle racer, we can find the best life insurance policy with the comprehensive benefits at the lowest possible premium. Check out our About Us page to learn more about us and our business. We hope to talk to you soon.