Skydiving And Life Insurance: Is It Possible?

Skydiving is considered a high-risk activity by insurance companies due to the potential for serious injury or death. As such, it can be challenging for skydivers to obtain life insurance, and they may face higher premiums or exclusions related to their skydiving activities when applying for coverage. However, it is not impossible for skydivers to get life insurance, and there are a variety of policy options available to them, including term life insurance, whole life insurance, universal life insurance, and accidental death and dismemberment (AD&D) insurance. When applying for life insurance, it is crucial for skydivers to be honest about their activities and disclose any relevant details, as failing to do so could result in the denial of their claim in the event of an accident.

Skydiving and life insurance premiums

Life insurance companies determine the level of risk associated with an individual when calculating their life insurance premiums. Generally, the higher the risk of someone dying and thus their policy paying out to beneficiaries, the higher their premium. Skydiving is considered a high-risk activity by insurance companies due to the potential for serious injury or death associated with an uncontrolled dive or parachute malfunction. The most common injuries involved with skydiving are fractures and sprains, followed by cuts and bruises. The majority of skydiving injuries are caused by human error, such as improper landing techniques, failure to follow safety procedures, and poor judgment.

Because of the risk, finding life insurance for skydivers may require some extra steps. While it is still possible to obtain life insurance if you skydive, your premiums are likely to be higher than those of non-skydivers. This is because, when you apply for life insurance, the application usually includes questions about your lifestyle and hobbies, and insurance companies assess the risks associated with these activities. If you answer "yes" to skydiving, you will likely be viewed as high-risk and placed into a higher risk category, resulting in higher premiums.

However, it is important to note that not all insurance companies treat skydiving the same way. Some companies may not consider skydiving an extreme sport or even factor it into their risk assessment. Additionally, being a member of a skydiving club can result in lower life insurance rates compared to someone who is not a member, as club members are likely to be exposed to high safety standards and surrounded by experienced divers.

If you are a skydiver and are looking to buy life insurance, it is crucial to be honest and disclose your skydiving activities during the application process. Failing to do so could result in the denial of your claim in the event of an accident. Additionally, keeping a logbook of your jumps and any injuries can help reassure insurers that you take safety seriously and may even help decrease your premiums by demonstrating a positive track record in safe skydiving.

When it comes to life insurance options for skydivers, there are several types of policies available, including term life insurance, whole life insurance, universal life insurance, and accidental death and dismemberment (AD&D) insurance. Term life insurance provides coverage for a specific term, usually between 10 and 30 years, and is generally the most affordable option. Whole life insurance offers coverage for the policyholder's entire life and includes a cash value component. Universal life insurance provides more flexibility than whole life insurance, allowing adjustments to premium payments and death benefits over time. AD&D insurance provides coverage for accidental death or injury and may be particularly suitable for skydivers.

In conclusion, while skydiving can affect life insurance premiums and the availability of certain policies, it is still possible for skydivers to obtain adequate life insurance coverage. By being honest about their activities, shopping around for the best rates, and considering different types of policies, skydivers can find the financial protection they need without compromising their passion for the sport.

Life insurance for skydivers

Skydiving is a high-risk activity, and insurance companies consider it as such. However, it is still possible to get life insurance if you skydive. In this article, we will discuss the options available for skydivers seeking life insurance, the factors that influence their premiums, and the importance of being honest about their skydiving activities.

Yes, it is possible to obtain life insurance if you are a skydiver. However, your skydiving activities may impact the cost of your premiums or result in certain exclusions. Some insurers may charge higher monthly premiums, while others may exclude skydiving from your coverage altogether. It is important to disclose your skydiving activities during the application process, as failing to do so could result in a denied claim in the event of an accident.

Factors Affecting Life Insurance for Skydivers

When applying for life insurance, insurers typically consider various factors, including age, health, family medical history, lifestyle, and hobbies. For skydivers, additional factors come into play, such as:

• Frequency of skydiving: Insurers will consider how often you go skydiving, as frequent jumps may increase your risk of injury or death, leading to higher premiums or policy exclusions.
• Experience: Insurers will also take into account your level of experience as a skydiver, with less experienced skydivers potentially posing a greater risk.
• Safety record: Your safety record as a skydiver, including any accidents or injuries, will be evaluated.
• Affiliation with a skydiving club: Affiliation with a club may result in standard rates, as you will be exposed to high safety standards and experienced divers.
• Type of jump: The level of risk associated with the jump, such as a solo jump versus a safer tandem jump, will be considered.

Types of Life Insurance for Skydivers

Skydivers can typically obtain similar types of life insurance as non-skydivers, including term life insurance, whole life insurance, and universal life insurance. Here are some options to consider:

• Term Life Insurance: This policy provides coverage for a specific term, usually between 10 and 30 years, and is generally the most affordable option.
• Whole Life Insurance: This type of policy offers coverage for the policyholder's entire life and includes a cash value component that grows over time.
• Universal Life Insurance: This policy offers more flexibility than whole life insurance, allowing adjustments to premium payments and death benefits.
• Accidental Death and Dismemberment (AD&D) Insurance: AD&D insurance covers accidental death or injury and may be particularly suitable for skydivers.

Tips for Skydivers Seeking Life Insurance

• Be honest about your skydiving activities: Disclose your skydiving hobbies during the application process to ensure your policy is not invalidated or the payout reduced in the event of an accident.
• Shop around: Compare policies from multiple insurance providers to find the best coverage and rates that fit your individual needs.
• Work with an experienced agent: Consider working with an agent who understands the unique needs and risks associated with high-risk activities.
• Keep a logbook: Document your jumps and any injuries to prove to insurers that you take safety seriously and to help identify any areas for improvement.

Riders for skydivers

Riders, or endorsements, are add-ons that you can purchase to personalise your coverage. Here are some riders that skydivers may want to consider adding to their life insurance policy:

Accidental Death and Dismemberment (AD&D)

AD&D provides compensation for certain accidents that result in death or the physical or functional loss of body parts (as outlined by the insurer). If you have accidental death insurance and skydiving is a covered event, your beneficiary would receive the death benefit if you pass away from a skydiving accident.

Waiver of Premium Rider

A life insurance premium for a skydiver may be on the higher side, which could be challenging to maintain, especially in the event of physical hardship. With a waiver of premium rider, the insured may be exempt from making premium payments if they become disabled and lose their income. Disability qualifications will vary from provider to provider, and it is important to check with your provider before purchasing.

Family Income Benefit Rider

This may be particularly useful for skydivers with a family to provide for. In the event of the insured's death, this rider would provide income to the beneficiaries for a set number of years. Typically, the amount will be equal to the insured's monthly income.

Return of Premium Rider

This rider will refund you your life insurance premiums at the end of your policy term. A return of premium rider is one of the more expensive ones you can purchase, but it could still be beneficial for skydivers with term life insurance policies.

Lying about skydiving on a life insurance application

If an individual lies about skydiving on their life insurance application and is caught, their application may be rejected outright. Insurance companies conduct thorough investigations, including medical examinations and reviews of medical records, to verify the information provided. They may also interview friends and relatives to ensure accuracy. Additionally, the Medical Information Bureau (MIB) maintains a cooperative database that allows insurers to cross-reference medical conditions and risk factors, making it difficult to get away with lying.

If an individual is dishonest about their skydiving hobby and their application is approved, there is still a risk of being caught during the contestability period, which typically lasts for the first two years of the policy. During this period, insurers can investigate claims and discrepancies in the application. If they uncover intentional misrepresentation or falsehoods, they reserve the right to deny claims or cancel the policy altogether.

In the unfortunate event of the insured's death, lying about skydiving on the application could have dire consequences for their beneficiaries. If the insurer discovers the lie after the fact, they may decrease or deny the death benefit altogether, leaving the loved ones without the intended financial support.

Furthermore, lying about skydiving on a life insurance application could result in criminal charges, including fines, restitution, or even jail time. Insurance fraud is a serious offence, and the financial impact of fraud extends beyond the individual, affecting businesses and consumers alike.

Therefore, it is always best to be honest about skydiving or any other high-risk activities when applying for life insurance. While it may result in higher premiums, it ensures a smooth application process and guarantees that beneficiaries will receive the full death benefit in the event of an accident.

Skydiving and insurance underwriting

Skydiving is considered a high-risk activity by insurance companies due to the potential for serious injury or death. As a result, skydivers may be placed in a higher-risk category, leading to higher insurance premiums or even denial of coverage. However, it is still possible for skydivers to obtain life insurance, and being honest about the activity is crucial.

Underwriting Factors

When assessing life insurance applications from skydivers, insurers consider various factors beyond the standard health, family history, and driving record. These additional factors include:

• Frequency of Skydiving: Insurers will assess how often an individual goes skydiving, as frequent jumps may increase the risk of injury or death, resulting in higher premiums or policy exclusions.
• Experience Level: The level of experience as a skydiver is taken into account, with less experienced skydivers typically considered higher-risk than their more seasoned counterparts.
• Safety Record: Insurers evaluate an applicant's safety record, including any accidents or injuries sustained during skydiving. Maintaining a detailed logbook of jumps and injuries can help reassure insurers and potentially lower premiums.
• Type of Jump: The type of jump, such as a solo jump versus a safer tandem jump, can impact the risk assessment.
• Club Membership: Affiliation with a skydiving or parachute club can result in standard rates as these groups often maintain high safety standards and have experienced members.

Types of Life Insurance for Skydivers

Skydivers have several options for life insurance, including:

• Term Life Insurance: This type of policy provides coverage for a specific term, typically between 10 and 30 years, and is generally the most affordable option.
• Whole Life Insurance: Whole life insurance covers the policyholder for their entire life and includes a cash value component that grows over time.
• Universal Life Insurance: This policy offers more flexibility than whole life insurance, allowing adjustments to premium payments and death benefits.
• Accidental Death and Dismemberment (AD&D) Insurance: AD&D insurance is specifically designed to provide coverage for accidental deaths and injuries, making it a suitable option for skydivers.

Recommendations for Skydivers

When it comes to life insurance, skydivers should be transparent about their activities to avoid issues with their policy. It is advisable to shop around and compare policies from multiple providers to find the best coverage and rates. Working with an experienced insurance broker who understands extreme sports can be beneficial. Additionally, keeping a detailed logbook of jumps and injuries can help reassure insurers and potentially lower premiums.

Frequently asked questions