Life insurance for skydivers

Skydiving is a popular pastime and sport that has grown in popularity over the previous decade. According to the United States Parachute Association (USPA), more than 3.5 million jumps are expected to be made in 2021, exceeding the 3.0 million anticipated jumps in 2010. However, because of the possibility of faulty equipment or ordinary human error, the sport is dangerous, and finding life insurance for skydivers may be more difficult. The insurance editorial team at StrongInsurance breaks down what skydivers need to know about their risk level and coverage options in order to pick the best skydiving life insurance policy for their requirements.

Skydiving and life insurance premiums

When calculating life insurance rates, life insurance companies consider the level of risk connected with an individual. In general, the higher the probability that someone would die and their policy will pay out to beneficiaries, the higher their premium. Skydivers may be automatically classified in a higher risk category because skydiving is a risky sport. Furthermore, persons who pose too high a risk for insurance companies, whether due to their activities or other health concerns, may be denied coverage.

Every life insurance company has their own grading system. However, the process normally includes a medical check as well as considerations such as your age, health, family medical history, lifestyle, and even hobbies. This is why getting many estimates can be beneficial; each company's premium may differ depending on their rating methodology. You should check quotations from several providers to locate the best deal.

While skydiving is most likely only one part of your life, it's useful to be aware of how it may affect your coverage.

Higher premiums

While the USPA estimates a very low number of skydiving deaths each year (.28 fatalities per 100,000 jumps), the activity is nonetheless regarded as dangerous. Most life insurance estimates will inquire about your interests. It's rather normal to be asked if you skydive or plan to skydive in the near future. If you answer "yes" to this question, you are most certainly considered high-risk. This should not prevent you from being honest about your skydiving experience. If you are a skydiver or intend to skydive within the time period indicated on the application, saying "no" in order to obtain a lower premium would be deemed insurance fraud and might result in your application being denied, perhaps resulting in fines and criminal prosecution.

Denial of coverage

Including skydiving as a pastime on a life insurance application may result in increased rates, but it may also result in coverage denial. Even the greatest life insurance firms may refuse to insure you if you are regarded as too hazardous. Listing skydiving as a pastime may be enough to disqualify you from coverage, but your medical test findings or a combination of these two criteria may also disqualify you. For example, if you have a medical condition that increases your risk of health issues or death when skydiving, such as hypertension or diabetes, you may be deemed too risky to cover.

Life insurance for skydivers

Skydivers, like everyone else, have life insurance options and can apply for coverage from a variety of life insurance companies, including those that offer term life or permanent life insurance policies. Working with an agent or using a life insurance calculator may assist you in determining which type and amount of coverage to purchase.

Term life insurance

Term life insurance may be a useful alternative for skydivers who only require coverage for a limited time, such as to fulfill financial obligations such as tuition or a mortgage. Term policies are in existence for a set number of years — often between 10 and 30 — and provide a death benefit to beneficiaries if the policyholder dies during that time. If the policyholder outlives the term of the policy and does not renew coverage, the policy will expire and no death benefit will be paid.

Permanent life insurance

Permanent life insurance plans, unlike term life insurance, remain in force for the policyholder's entire life as long as payments are paid. Furthermore, permanent life insurance typically includes a cash value component that you may borrow against during the life of the policy after it matures, which may be appealing to skydivers looking for both coverage and an investment vehicle. There are various possibilities for permanent life insurance, including whole life and universal life policies.

Accidental death insurance

Skydivers may potentially benefit from accidental death and dismemberment (AD&D) insurance. AD&D compensates victims of certain accidents that result in death or the physical or functional loss of bodily parts (as defined by the insurer). If you have accidental death insurance and skydiving is a covered event, the death benefit would be paid to your beneficiary if you died in a skydiving accident. AD&D coverage, on the other hand, is often available as a rider option or as a supplemental life insurance policy, which means that skydivers seeking coverage would still need to consider term or permanent life insurance.

What happens if I lie about skydiving on my life insurance application?

Lying on your life insurance application is against the law and may result in serious repercussions. Lying to an insurance company about your skydiving hobby could result in your application being denied, your coverage being canceled (if your policy is already in place when your lie is found, especially during the contestability period), and charges of life insurance fraud being filed against you. Furthermore, if you die in a skydiving accident and did not reveal your sport to your life insurance company, your beneficiaries may not be entitled to the entire face value of your death benefit. Being truthful on your application can help ensure a smooth application process and payment of your death benefit.