Skydiving: Is Your Northwestern Life Insurance Valid?

Skydiving is a high-risk activity, and this can have an impact on your ability to get life insurance coverage. While it is not mandatory to have insurance for skydiving, it is a good idea to get coverage in case something goes wrong during a jump. Whether your life insurance policy covers skydiving accidents depends on the carrier and the individual plan. Many standard life insurance policies do not cover deaths resulting from extreme or high-risk sports. However, some insurance companies do provide specialized life insurance for skydivers, and you can also purchase skydiving accident insurance separately.

Does life insurance cover skydiving?

Skydiving is an exciting but risky sport. If you're thinking of taking it up, you may be wondering how it will affect your life insurance. Here's what you need to know:

Skydiving does not require you to have insurance, especially if you are doing a tandem jump. However, most skydiving centres will require you to sign a waiver releasing them from liability in the event of an accident. This means that you or your family cannot sue for damages if something goes wrong during your jump, even if the accident was not your fault.

Whether your life insurance policy covers skydiving accidents depends on the carrier and the individual plan. Many standard life insurance policies do not cover deaths that occur as a result of extreme or high-risk sports. When you purchase a life insurance policy, you usually fill out a questionnaire about your lifestyle, including your participation in high-risk activities. The insurance carrier will then decide if the policy excludes payout in the event of your death resulting from one of these activities.

Yes, it is possible to get life insurance that covers skydiving, but it may be more expensive. Your life insurance premiums are based on your risk profile, so engaging in high-risk activities like skydiving will likely increase your premiums. If you are a frequent skydiver, your premiums could increase significantly due to a flat extra fee, which is an additional charge to offset the higher risk.

There are a few options for skydiving life insurance:

• You can purchase a regular life insurance policy that excludes skydiving as an insurable cause of death. This option will not cover you in the event of a skydiving accident, but your premiums will be lower.
• You can buy a life insurance policy that specifically covers death due to skydiving. This option will result in higher premiums due to the additional risk.
• You can opt for specialised skydiving life insurance, which is tailored to the unique risks faced by skydivers. This may include personal accident skydiver insurance, which provides compensation for accidents or death resulting from a skydiving accident.
• You can also consider purchasing travel insurance with skydiver coverage if you plan to skydive in another country. This can provide medical coverage and protect your parachuting gear, luggage, and personal possessions.

It is crucial to be honest and disclose any high-risk hobbies, such as skydiving, when applying for life insurance. Life insurance policies are subject to a contestability period, usually the first two years of the policy, during which the insurance company can cancel your policy or deny a claim if they find that you have falsified information on your application. Additionally, if you die in a skydiving accident and it is discovered that you did not disclose this hobby, your beneficiaries may not be entitled to the full death benefit, and your policy may even be cancelled.

What are the chances of a skydiving accident?

Skydiving is considered a high-risk sport, and accidents can occur at any stage of a jump. However, the chances of a skydiving accident are relatively low. Here is an analysis of the probability of skydiving accidents and the factors that contribute to their occurrence.

Probability of Skydiving Accidents

According to the United States Parachute Association (USPA), there were 15 skydiving fatalities out of approximately 3.3 million jumps in 2019, resulting in a fatality rate of one death per 220,301 jumps. This data indicates that the odds of a skydiving fatality are approximately 0.51 per 100,000 jumps or one in 200,000 jumps. The USPA also reported 2,522 skydiving injuries that required medical care in 2019, translating to about one injury for every 1,310 jumps.

Tandem skydiving, where a student is harnessed to an experienced instructor, has an even better safety record. On average, there has been one student fatality per 500,000 jumps over the past decade.

Factors Contributing to Skydiving Accidents

Skydiving accidents can be classified into several categories:

• No pull/low pull: Accidents occur when a jumper fails to deploy their parachute or deploys it too low to slow down sufficiently.
• Equipment malfunctions: Malfunctions may involve the main or reserve parachutes, steering toggles, or other vital equipment. Incorrect chute packing or poor body positioning during deployment can also lead to malfunctions.
• Reserve problems: These issues arise when the reserve parachute fails to deploy successfully, often due to entanglement with the main chute.
• Freefall collisions: Mid-air collisions involving two or more skydivers during freefall.
• Canopy collisions: Canopies of multiple jumpers entangle or wrap around each other, causing partial collapse of the parachutes.
• Bad landings: Many skydivers consider landings the most dangerous part. Accidents during landing can be caused by wind, obstacles, improper body positioning, or disregard for procedures.

Improving Skydiving Safety

The skydiving community has made significant strides in improving safety over the years. The implementation of strict safety regulations, training policies, and equipment upgrades have led to a steady decrease in skydiving fatalities since the 1960s. Today, skydivers typically jump with two parachutes—a main and a reserve—providing a backup option if the main parachute malfunctions. Additionally, devices like the Automatic Activation Device (AAD) enhance safety by monitoring the skydiver's rate of descent and altitude, deploying the reserve parachute if needed.

While skydiving is inherently risky, the chances of a skydiving accident are relatively low, especially with modern safety measures and advancements in technology. Tandem skydiving, in particular, offers an even higher level of safety due to the presence of experienced instructors. However, it is essential for skydivers to maintain discipline, compliance, and accountability to further mitigate the risks associated with this extreme sport.

What are the different types of skydiving accidents?

Skydiving is an exhilarating sport that tens of thousands of people enjoy every year. However, it is a high-risk activity, and accidents can occur at any stage of a jump. Here are some of the different types of skydiving accidents that can happen:

• No pull/low pull: This type of accident occurs when a skydiver fails to deploy their parachute or deploys it too low to slow their descent effectively.
• Equipment malfunctions: Malfunctions can involve the main or reserve parachutes, steering toggles, or other vital equipment. They can be caused by faulty equipment, incorrect packing, or poor body positioning during deployment.
• Reserve problems: These accidents occur when the reserve parachute fails to deploy successfully, often due to entanglement with the main chute.
• Freefall collisions: These are mid-air collisions involving two or more skydivers during freefall.
• Canopy collisions: Canopy collisions happen when the canopies of multiple jumpers entangle or wrap around each other, causing a partial collapse of the parachutes.
• Bad landings: Many skydivers consider landings the most dangerous part of a jump. Accidents can be caused by wind, obstacles, improper body positioning, or failure to follow procedures.

It's important to note that multiple factors can contribute to a single accident, and determining the primary cause can be challenging, especially if there are fatalities. While modern equipment and training methods have made skydiving safer, it is still a high-risk activity, and accidents can have serious consequences.

What are the insurance options for skydivers?

Skydiving is a high-risk sport, and as such, it can be challenging for skydivers to find insurance coverage. However, there are several insurance options available for skydivers:

Life Insurance

Life insurance companies determine coverage rates and eligibility based on an individual's risk profile. As skydiving is considered a dangerous sport, skydivers are often placed in a higher-risk category, resulting in higher premiums. Some insurance companies may even deny coverage to skydivers due to the increased risk. It is important to note that lying about skydiving on a life insurance application is considered insurance fraud and can result in legal consequences.

When purchasing life insurance, skydivers have the option of term life insurance or permanent life insurance. Term life insurance covers a set period, usually 10 to 30 years, and provides a death benefit to beneficiaries if the policyholder passes within that time. Permanent life insurance, on the other hand, stays in effect for the policyholder's entire life as long as premiums are paid and often includes an investment component. Within permanent life insurance, there are options such as whole life, universal life, and variable life policies.

Riders

Riders or endorsements are add-ons to a life insurance policy that provide additional coverage. Relevant riders for skydivers include:

• Accidental death and dismemberment (AD&D): This provides compensation for accidents resulting in death or physical loss of body parts.
• Waiver of premium rider: This exempts the insured from making premium payments if they become disabled and lose their income.
• Family income benefit rider: Provides income to beneficiaries for a set number of years, typically equal to the insured's monthly income.
• Return of premium rider: Refunds the policyholder's life insurance premiums at the end of the policy term.

Travel Insurance

Standard travel insurance policies typically do not cover hazardous sports like skydiving. However, skydivers can purchase specialised travel insurance that includes coverage for medical expenses, personal liability, trip cancellation, equipment damage or loss, and more. This type of insurance is essential for skydivers travelling abroad, as it can provide financial protection in the event of an accident or injury.

Sports Accident Insurance

This type of insurance is designed specifically for high-risk sports like skydiving and can provide coverage for personal liability and income protection. It is important to note that this type of insurance may only cover the insured during the actual skydiving activity and may not include pre- or post-jump incidents.

Skydiving-Specific Insurance

Some insurance companies offer specialised skydiving life insurance, which is tailored to the unique risks and needs of skydivers. This type of insurance can include liability coverage, accidents, injuries, and even equipment coverage.

In conclusion, while skydiving may increase insurance costs and reduce coverage options, there are several insurance products available to protect skydivers and their loved ones in the event of an accident. It is essential to carefully review policies, compare rates, and be honest about skydiving activities to ensure adequate coverage.

What happens if you lie about skydiving on your insurance application?

Lying on a life insurance application is considered insurance fraud and can have serious consequences. If you lie about skydiving on your life insurance application, your application could be denied, or your coverage could be rescinded if the lie is discovered after your policy is in place. If you die from a skydiving accident and you did not disclose your skydiving hobby, your beneficiaries may not be entitled to the full face value of your death benefit.

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. Because skydiving is a risky sport, individuals who skydive may automatically be placed in a higher-risk category, regardless of their age or health status.

If you lie about skydiving on your life insurance application, you may be charged a lower premium than you would have been otherwise. However, if you are caught lying, your insurance company can immediately decline coverage. If the lie is accidental or relatively minor, you might be able to get approved for coverage but could pay a higher rate or face coverage limitations based on the accurate representation of your medical history.

After your policy goes into effect, many life insurance providers apply what is known as a contestability period. During this time, your life insurance provider may review your policy for false statements or misrepresentations. If you pass away during this time and your insurer discovers that you lied on your initial application—for example, by failing to disclose that you had diabetes, and the cause of death was related to this—it could result in a claim denial or a decreased death benefit. The insurer might also file a fraud lawsuit against your estate.

In addition to these consequences, lying on your life insurance application could impact your future insurability.

Frequently asked questions