Skydiving: Is Your Life Insurance Policy Still Valid?

Skydiving is an exhilarating pastime for many, but it's also a risky activity that can result in serious injuries or even death. This raises an important question: does life insurance cover skydiving accidents? The answer is complex and depends on various factors, including the type of life insurance policy, the insurance provider, and the individual's risk profile. While some standard life insurance policies may exclude high-risk activities like skydiving, there are specialised skydiving insurance options available, often with additional costs. Ultimately, full disclosure and careful consideration of one's options are crucial when it comes to life insurance and extreme sports.

Skydiving and life insurance

Skydiving is an exhilarating activity, but it's also a risky one. If you're a skydiver, you may be wondering how to get the right type of insurance to protect yourself and your family. Rest assured, there are insurance policies out there for skydivers like you. This article will answer some common questions about life insurance for skydivers.

Yes, skydivers can get life insurance. However, some standard life insurance policies may not cover skydiving-related deaths. When purchasing life insurance, you will likely be asked about your participation in high-risk activities, including skydiving. Failing to disclose this information could lead to the denial of your claim or the cancellation of your policy.

As a skydiver, your best option for life insurance is to get a skydiver-specific policy. Skydiving is considered a risky activity by insurance companies, so most insurers won't cover it under their traditional plans. Skydiver-specific policies can include term insurance, permanent insurance, or travel insurance with skydiver coverage. Term insurance is more affordable but only covers a specified period, while permanent insurance covers your entire life but is more expensive. Travel insurance can also provide medical coverage when skydiving abroad.

Skydivers will typically pay a standard premium based on their rating, plus an additional "flat extra fee" for engaging in a "dangerous hobby". The cost depends on whether the insurer considers you a recreational skydiver (performing 50 jumps or fewer per year). For recreational skydivers, the flat extra fee is usually $2.50 to $3.00 per thousand dollars of coverage. This amount increases with the number of jumps. Rates may be cheaper if you're a member of a skydiving club.

While you can't avoid the extra fee for skydiving, you can lower your overall life insurance premiums by improving your health. Eating well, exercising, and avoiding smoking, drugs, and excessive drinking can help. You can also reduce costs by lowering your death benefit, but be careful to ensure your coverage is still sufficient for debts and funeral expenses.

Skydiving insurance options

Skydiving is an exhilarating experience, but it's also a risky activity that can lead to serious injuries or even death. If you're a skydiver, it's important to consider your insurance options to protect yourself and your loved ones financially in the event of an accident. Here are some insurance options to consider:

Life Insurance for Skydivers

Standard life insurance policies may not cover skydiving due to its high-risk nature. Some policies include a rider that excludes payout if you die while participating in extreme or high-risk sports, including skydiving. However, there are insurance companies that provide specialised life insurance plans for skydivers. These plans are tailored to the unique risks associated with the activity and can provide peace of mind. Be prepared to pay higher premiums due to the increased risk.

Skydiving Accident Insurance

Small, independent insurance companies may offer skydiving accident insurance, which is designed specifically for skydivers. This type of insurance only covers you during a jump and may include disability or personal liability benefits in the event of an accident. While it won't provide comprehensive coverage like life insurance, it can be a more affordable option to ensure some level of protection.

Travel Insurance with Skydiver Coverage

If you plan to go skydiving in another country, consider purchasing travel insurance with skydiver coverage. This type of insurance will provide medical coverage if you require treatment abroad due to a skydiving accident. It may also include coverage for your parachuting gear and other personal possessions.

Accidental Death and Dismemberment Insurance

Accidental Death and Dismemberment (AD&D) insurance is another option to consider. It pays out if you lose a limb or die as a result of any accident, including skydiving. AD&D insurance can be purchased as a standalone policy or as a supplement to a traditional life insurance policy. Be sure to choose a company that doesn't exclude skydiving and other high-risk activities.

Term Life Insurance vs. Permanent Life Insurance

When considering life insurance options, you'll come across two main types: term life insurance and permanent life insurance. Term life insurance covers death benefits only and is purchased for a specific period, such as 10, 20, or 30 years. It is the most affordable option. On the other hand, permanent life insurance covers you for your entire life as long as you continue to pay the premiums. It is more costly but includes an investment component, such as whole life, universal life, or variable life options.

Being Honest About Your Skydiving Hobby

It is crucial to be honest about your skydiving hobby when applying for life insurance. Failing to disclose this information could lead to serious consequences, including denial of your claim or cancellation of your policy. Insurance companies evaluate your risk profile based on various factors, including your lifestyle and participation in high-risk activities. By being upfront, you can ensure you have the appropriate coverage and avoid issues with claims in the future.

Skydiving and travel insurance

Skydiving is an exhilarating activity, but it's also a risky one. If you're planning on skydiving during your travels, it's important to make sure you have the right insurance in place. Here's what you need to know about skydiving and travel insurance:

Yes, it is highly recommended to have travel insurance in place if you plan to skydive during your trip. Skydiving is considered a high-risk activity, and accidents can happen even with the proper equipment and experienced instructors. Having travel insurance will help protect you financially in case of any mishaps during your jump.

Travel insurance policies designed for extreme sports enthusiasts typically include coverage for medical emergencies, personal liability, and accidental death or dismemberment. This means that if you are injured during a skydiving accident, your medical expenses will be covered up to the limits of your policy. Additionally, if you cause injury or damage to others or their property, your personal liability coverage will come into play. In the unfortunate event of death or loss of limb, your beneficiaries will receive a payout according to the terms of your policy.

The cost of travel insurance for skydiving can vary depending on several factors. These include the duration of your trip, the number of skydives you plan to make, and the coverage limits you select. Generally, you can expect to pay a higher premium for travel insurance that includes skydiving coverage compared to a standard policy. The increase in cost is due to the higher risk associated with the activity.

It's important to carefully review the terms and conditions of your travel insurance policy to understand any exclusions or limitations. Some policies may have specific requirements, such as a maximum number of skydives allowed or a minimum safety rating for the skydiving centre. Certain pre-existing medical conditions may also impact your coverage. Be sure to disclose any relevant information accurately when purchasing your travel insurance to ensure that you are adequately protected.

When choosing travel insurance for skydiving, it's essential to select a reputable company with experience insuring high-risk activities. Compare policies from multiple providers and pay close attention to the coverage limits, exclusions, and customer reviews. Consider using a broker or independent agent who can help you navigate the options and find the best coverage for your specific needs.

Skydiving accident statistics

Skydiving is a risky sport, with jumpers falling at speeds of 120 mph or more. However, safety measures have improved significantly over the years, reducing the fatality rate.

In 2012, there were 19 parachuting-related deaths in the US, which is approximately one death per 100,000 jumps. In 2019, the United States Parachute Association (USPA) recorded 15 skydiving fatalities out of about 3.3 million jumps, which is approximately one death for every 220,301 jumps. The chances of dying in a skydiving accident are roughly 1 in 500,000, while roughly 3 out of every 10,000 dives result in injury.

The USPA reported that the number of fatalities per 100,000 jumps was 0.51 in 2022, which is equivalent to one fatality in 200,000 jumps. This is a significant improvement from the 1961 report of 11.12 fatalities per 100,000 skydives (22 in 200,000). The decrease in the skydiving fatality rate over the years can be attributed to advancements in technology, safety regulations, training, and equipment.

Skydiving accidents can occur at any stage of a jump and are often caused by human error. The most common types of skydiving accidents are:

• No pull/low pull: When a jumper fails to deploy their parachute or deploys it at a lower altitude than needed.
• Equipment malfunctions: Malfunctions may involve the failure of the main or reserve parachutes, steering toggles, or other vital equipment.
• Reserve problems: When the reserve parachute fails to deploy successfully, usually due to entanglement with the main chute.
• Freefall collisions: When two or more skydivers collide during freefall.
• Canopy collisions: When the canopies of two or more jumpers entangle, causing a partial collapse of the chutes.
• Bad landings: Considered the most dangerous part of a jump by many skydivers, bad landings can be caused by wind, obstacles, improper body positioning, or disregard of procedures.

Skydiving insurance costs

Skydiving is considered a "dangerous hobby" and a gateway to other high-risk activities, such as rock climbing. As a result, life insurance companies will charge higher premiums to skydivers.

The cost of your premium will depend on how often you skydive. If you only skydive once or twice, you typically won't have to pay extra for your life insurance. However, if you skydive regularly, even just a few times a year, you'll likely pay between $2 and $5 per $1000 for your flat fee. If you're a more regular skydiver, that amount could go up to $10. The insurance company will determine this based on the number of times you jump each year. For example, if you have $100,000 in life insurance coverage, and you are charged a $2 flat fee for skydiving, you will pay an extra $200 in premiums for the year, in addition to your regular premiums.

If you are a regular skydiver, you can expect to pay a flat extra of $2.50 to $7.50 per $1000 of life insurance coverage, depending on how often you jump. These flat extras are always in addition to your regular insurance rate, which is determined by your health and age. If you engage in other dangerous hobbies, such as rock climbing or bungee jumping, there may be an additional flat extra imposed beyond the skydiving rates.

There are a few options for structuring your coverage as a skydiver:

• Ask for an exclusion for your skydiving habit. This means you won't pay anything extra, but your family won't get anything if you die while skydiving.
• Purchase two policies. One policy covers skydiving, and one excludes it. This can be a good compromise if the flat extra for skydiving coverage is too expensive.
• Include skydiving on all your life insurance coverage. This is the safest but most expensive option.

It's important to be honest on your life insurance application. Lying about your skydiving hobby could result in your application being denied or your coverage being rescinded. If you die from a skydiving accident and you didn't disclose your hobby, your beneficiaries may not receive the full death benefit.

Frequently asked questions