But for those with risky lifestyles often find that comes at no small price. Take former New Mexico Gov. Gary Johnson, for example.
Johnson says he pays about $10,000 a year for his $3 million life insurance policy, in part because of his precarious interests. And even he doesn’t wonder why
Johnson spends considerable time engaging in potentially dangerous activities, from mountain climbing to paragliding, and has had accidents. In October of this year, the death-defying ex-politician broke his back while paragliding off the island of Maui in Hawaii. He previously broke his back in 2001 when he slipped on a patch of ice while jogging.“If your house caught on fire every other year, would you want to insure it?” Scott asked. “No, because you wouldn’t want to pay the loss. Someone who uses dynamite in the workplace might not be insurable with anybody.”
Daniel Scott, senior vice president of Talbot Agency Inc., an insurance agency, says he wouldn’t insure someone like Johnson because he’s considered too high a risk.
The article notes John Kear and Carolyn Parker reduced their costs by merely paying the $25/month mortgage insurance is paid to protect their most valuable asset. They would have had to pay $300 for comparable life insurance.