Riding a motorcycle can be exciting, but it can also be dangerous. Due to the nearly thirty times higher risk of death in a two-wheeled accident for motorcyclists, both road warriors and casual enthusiasts should consider getting suitable coverage. This is where motorcyclists need to know about life insurance and how it can be beneficial for their loved ones if they pass away.
Purchasing life insurance is an excellent idea for motorcyclists, but it’s important they know are more likely to die than other people, especially when they’re riding at top speed on an open road. The purpose of life insurance policies is to provide beneficiaries with financial support if the policyholder passes away. For added protection, most agents advise obtaining coverage that is five to ten times your yearly income. Continue reading this article to know more about how life insurance is suitable for motorcyclists.
Why is Life Insurance Important for Motorcyclists
Motorcyclists need to obtain life insurance for a few reasons. Now let’s discuss what they are.
Greater risk of accidents
Compared to other drivers, motorcycle riders are incredibly vulnerable on the roads, according to statistics. Except for helmets and possibly leather jackets, bikers are not as well protected from collisions as drivers, who are housed inside robust steel frames. The information unequivocally shows the increased risks that motorcycle riders face, as well as the frequently disastrous outcomes.
Coverage for families
Your family will receive money from life insurance if you pass away. If you ride, life insurance helps support dependents in the event of your absence and covers burial expenses and outstanding debts.
Coverage against unexpected death
Motorcycle accidents often result in unintentional deaths that are also covered by life insurance policies. Typically, motorcycle riding does not result in higher insurance rates.
Income coverage
In the event of the motorcyclist’s death, life insurance also replaces income to support dependents. This guarantees your family’s financial stability even in your absence.
Peace of mind
Motorcycle owners have a crucial sense of peace of mind knowing that their family will be financially supported even in the event of their death.
Types of Life Insurance for Motorcyclists
The best method to give your spouse or kids additional financial security is through life insurance for motorcycle riders, which provides a lump sum payment in the event of your death. If you pass away while operating a motorcycle or for an unrelated reason, your beneficiaries may use the insurance payout to pay for significant costs (such as burial expenses).
There are two main types of life insurance for motorcyclists need to know which includes;
Term life insurance
A cost-effective way to offer your family financial peace of mind is through term life insurance. This kind of policy has a predefined duration or term. During this time, which is typically between 10 and 30 years, your insurance company will pay beneficiaries if you pass away. It is possible to extend the policy, but the premium might increase.
Permanent life insurance
Like whole life insurance, permanent life insurance doesn’t expire until the policy lapses or you pass away. One advantage of the policy for policyholders is the ability to borrow money from the policy, which over time gains cash value. Borrowing against the policy, however, may result in a reduction or loss of death benefits.
What Are Risk Assessment
Any type of insurance policy requires risk assessment. If you ride a motorcycle, you have probably already dealt with auto insurance companies like this. As you’ve proven that you’re a higher-risk driver to insure, your rates increase if you get a ticket or cause an accident.
Similar procedures are used by life insurance companies to determine risk and determine your premiums. After examining information from your insurance application, they categorize you as a risk according to the following:
- Age and Gender.
- Medical background.
- History of prescriptions.
- Lab results from a medical examination.
- Driving histories and criminal histories.
- Drug and alcohol abuse.
- Traveling abroad, smoking, and profession.
- Hobbies.
Your hobbies and profession are important because some are riskier than others. For instance, a firefighter who skydives on the weekends is exposed to higher risks than an accountant who knits in her spare time. Insurers do not view motorcycling as a risky pastime in the same sense that they view skydiving.
Therefore, having a bike won’t affect your risk class if you ride for fun, but having a clean driving record will. Professional motorcycle riders will probably find themselves in a higher-risk class because their line of work involves risk.
Can I Get Life Insurance If I Ride a Motorcycle
Yes, you can get life insurance if you ride a motorcycle. Motorcyclists need to know that getting life insurance is not as difficult as many people may believe in many cases. It’s common knowledge that the added risk that comes with motorcycling increases the chance that a life insurance application will be denied or that the premiums will go up.
The good news is that, depending on the reasons for using this kind of vehicle, most insurers will accept an application from a person who regularly rides a motorcycle on standard terms.
Motorcycles are typically used for:
- Transportation.
- Their line of work or profession.
- Sports and recreation.
Should I Mention Being a Motorcyclist in My Application
Yes, whether you ride a motorcycle for pleasure or a living, it is in your best interest to let your insurer know that you do. Although it may be tempting, lying about your activities is not a good idea. Be truthful when filling out a life insurance application; otherwise, your policy may not be issued or your death benefit may not be paid.