When talking to a potential client about life insurance for skydivers, one of the first questions we are asked is; Does life insurance cover skydiving? The average person will view skydiving as a dangerous sport, and rightfully so. I mean, you are jumping out of a plane with the only thing separating you and the ground is a piece of fabric.
According to Sky Diving Magazine, each year 35 people die each year skydiving, out of about 3 million parachuting jumps. Life insurance companies do view skydiving as a risk, and it is important to know what will be asked of you as a skydiver when applying for life insurance, and how it will affect your life insurance premiums.
Life insurance companies take different factors into account when issuing a life insurance rating, which determines the premium you will pay for your policy. The factors are pretty basic such as age, sex, medical history, family history, driving history, and certain lifestyle activities. Skydiving would fall into the high risk lifestyle category with other activities such as motorcycle riding, piloting a plane, car racing, etc…
All of these are activities which life insurance companies view as risky activities which increase your chance of death to a higher level than an average person who does not participate in these activities. In some cases, this will require you to pay a higher premium, since you are a higher risk for the life insurance company to insure.
The good news is, many life insurance companies will offer coverage to someone who skydives, and the premiums will usually depend on the experience and frequency of the jumps. The insurance company will charge a lower premium for someone who skydives occasionally (less than twice a year) than they would for someone who’s occupation is jumping out of a plane.
The more frequently you participate in skydiving, the higher insurance premiums you will possibly pay. If you are someone who already has a life insurance policy, and then decides you want to take up skydiving you will not be penalized by the life insurance company. As long as you had the policy before considering skydiving, you are in the clear and do not have to disclose to the insurance company you are a skydiver.
If you have only went skydiving once or twice, and only planning on continuing at this rate over the years, you may not have to pay extra for your life insurance policy. If you are planning on jumping 2-5 times per year, you most likely will have to pay a “flat extra” in addition to your policy premium. For these individuals it would most likely be close to $2.50-$5.00 per thousand of life insurance coverage, in addition to the normal life insurance premium.
For example, if you are purchasing a $100,000 term life insurance policy, and your policy premium is $360.00 per year and you skydive a few times a year and are charged a flat extra of $2.50 per thousand you would pay an additional $250 per year. This would make your annual premium $610 per year (360+250 flat extra).
This calculation is for illustrative purposes only, and does not designate any actual premium amounts. If you skydive more frequently the life insurance company could charge close to a $5.00-$10.00 per thousand flat extra. Another option which may exist depending on the life insurance company, is a policy exclusion, or excluded activity. This strategy can be used to keep premiums in a more manageable range. The exclusion for example would state if you died why skydiving, the life insurance company would not be responsible for paying the life insurance proceeds.
The best option if you are a skydiver, and looking to apply for life insurance coverage, is to contact us and let us help you evaluate which options are available. You do not want to apply to a company who has a negative outlook on skydiving and receive a decline. Working with a high risk independent agency will give you the best chance at getting covered, at the best rate.
Life insurance and skydiving should be accessed on a case by case basis as each person has different experience and different coverage options.