Rudolph likes to skydive as a hobby. Though he is careful when he skydives, why is his life insurance premium likely higher than Sandy, who jogs as a hobby?

A. Both hobbies are considered by insurers to be equally risky

B. Skydiving is usually judged by insurers to be less risky than jogging.

C. Skydiving is usually judged by insurers to be more risky than jogging.

D. Jogging is usually judged by insurers to be more risky than skydiving.

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Kai Oliver

2 November, 15:03

Rudolph likes to skydive as a hobby. Though he is careful when he skydives, why is his life insurance premium likely higher than Sandy, who jogs as a hobby?

A. Both hobbies are considered by insurers to be equally risky

B. Skydiving is usually judged by insurers to be less risky than jogging.

C. Skydiving is usually judged by insurers to be more risky than jogging.

D. Jogging is usually judged by insurers to be more risky than skydiving.

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Karen Fox · Answer 1

C. Skydiving is usually judged by insurers to be more risky than jogging.

Explanation:

Life insurance application become difficult for the people of same age and gender but different job profiles. The insurers found that the job is risky to make the premium high because the probability of claim is greater. Secondly, people with good health get life insurance easily with relatively low premium plan.

Skydiving is an adventure sports but it involves a great risk of life and injury on the other hand habit of jogging makes one more healthy and therefore the premium of a skydiver is more likely to be higher than a person with jogging habit.