Felix Baumgartner broke a world record by free-falling 23 miles and breaking the sound barrier.
You should have talked to his life insurance agent if you think he was nervous.
Many skydivers might believe that getting life insurance is impossible or super expensive.
If you are a skydiver, you might be pleasantly surprised to learn that it is farther from the truth.
Just because you like jumping out of excellent airplanes does NOT mean you cannot get live insurance.
Here’s what you need to know.
Table of Contents
- The Role of Frequency in Skydiving and Insurance Rates
- Equipment and Training: Are They Factored In?
- What if You Already Have Life Insurance?
- Group Skydiving: Does It Make a Difference?
- What Do Insurance Companies Look For Regarding Skydivers?
- Sample Life Insurance Quotes for Skydivers
- Getting a Quote
- Other Factors
- Your Options
- Life Insurance and Skydiving
- The Bottom Line – Life Insurance for the Skydiving Enthusiast
The Role of Frequency in Skydiving and Insurance Rates
The frequency of skydiving plays a significant role in insurance companies determining the risk factor associated with a policyholder.
Generally, a casual skydiver who might jump once or twice a year during a vacation or special occasion is considered less risky than someone who skydives every weekend.
For insurers, it’s a numbers game. The more frequently you expose yourself to the inherent risks of skydiving, the higher the probability that an accident might occur.
However, it’s worth noting that advancements in skydiving equipment and training have made the sport much safer than it once was.
Even so, it’s essential to be transparent about the frequency of your dives when inquiring about a life insurance policy, as dishonesty can lead to complications or non-payment in the event of a claim.
Equipment and Training: Are They Factored In?
Another aspect that insurance companies might take into consideration is the equipment and training that a skydiver has received. Just like in any other sport or activity, the quality and maintenance of equipment can play a crucial role in ensuring safety.
Having undergone certified training and regularly maintaining or updating skydiving gear can be viewed positively by some insurance providers.
For instance, a skydiver who invests in top-of-the-line parachutes, GPS equipment, and automatic activation devices (AADs) demonstrates a commitment to safety.
Similarly, completing advanced skydiving courses or obtaining certifications can further highlight a skydiver’s dedication to safe practices.
Therefore, when seeking life insurance, it might be beneficial to provide details about equipment and any specialized training to secure a more favorable rate.
What if You Already Have Life Insurance?
The good news is that if you already have life insurance, you’re good to go.
You’ll be automatically grandfathered into your policy. Take me for example. I have no intentions of jumping out of a plane and didn’t 2 years ago when I took out my 30-year term policy.
If I were to jump out of a plane next year, and my chute didn’t open, it would be a terrible day, but my wife would be protected.
Unlike other circumstances, the life insurance company would still pay the policy.
Group Skydiving: Does It Make a Difference?
Engaging in group skydiving activities or being part of a club can sometimes influence insurance rates. Insurers might view group skydiving as a more controlled environment, especially if dives are coordinated and overseen by experienced instructors or organizers.
Additionally, being part of a reputable skydiving club often means adhering to strict safety protocols, attending regular training sessions, and using well-maintained equipment. All these factors can contribute to a lower risk perception.
Thus, when applying for life insurance, it’s helpful to highlight any affiliations with recognized skydiving groups or clubs, as it may impact the final premium calculation. Remember, every detail counts when negotiating for a fair and reasonable life insurance rate.
What Do Insurance Companies Look For Regarding Skydivers?
If you don’t have life insurance in force and you’re looking to take out a new policy, here are some of the questions they will have regarding your skydiving activities.
- Number of skydives per year
- Are you a member of a skydiving club?
- Are you willing to accept an exclusion? (note: this is NOT recommended!)
It’s best to be upfront when the insurance companies ask for specifics on how often you jump per year.
Sample Life Insurance Quotes for Skydivers
| Carrier | Best Class Avaliable | Flat Extra Club Member | Flat Extra Non-Club | Flat Extra Instructor | Exclusion Available? |
|---|---|---|---|---|---|
| Assurity | Whatever class they qualify for medically | $2.50-$3.50 | $5.00 | $3.50 | No |
| Genworth | PBNS | $3<50/yr $5 51-100/yr $7.50 100-200/yr $10 200+/yr | $5<50/yr $7.50 51-100/yr Decline >100/yr | $5.00 | No |
| John Hancock | Prfd | $2.50 and up | Likely decline | No | |
| Lincoln Benefit | Prfd | $3<50/yr $5 51-100/yr $7.50 100-200/yr $10 200+/yr | $5<50/yr $7.50 51-100/yr Decline >100/yr | $5.00 | Yes and OK at PNS (state by state) |
A healthy 30-year-old can get a $250,000 30-year policy from Lincoln Benefit Life for $340/yr.
Let’s say that the same individual is in a skydiving club that jumps around 40 times a year.
Because of this, he automatically gets moved from Preferred Plus ratings to Preferred.
His policy at preferred ratings will cost him $415/yr through Lincoln. He will also have to pay a $3 flat fee per thousand dollars of insurance coverage.
This would add $750 ($3 X 250) to his base rate of $415, making his total annual premium $1,165.
Getting a Quote
Using an independent life insurance agency allows you to have the ability to work with all the top carriers that will underwrite skydivers.
Working with an independent agent has several benefits. The biggest is that it saves you time and frustration during the life insurance policy hunt.
Sure, you can spend hours on the phone talking to dozens of companies and answering the same questions repeatedly.
The search for an affordable high-risk activity life insurance policy can make you want to pull your hair out, but that’s where we can help.
The other advantage is that we know which companies view skydivers more favorably. The better they look at skydiving, the lower your monthly premiums will be.
Other Factors
Your adventurous hobby isn’t the only thing that the insurance company is going to look at; several other factors are going to be used to calculate your premiums.
One of the most significant contributing factors is your age. The younger that you are, the less risk you’re going to be. If you want to save money, don’t wait any longer to apply for your life insurance policy.
Another factor is your health. If you have any high-risk factors, such as chronic conditions or diseases, your monthly premiums will increase because you pose more risk to the company.
Your primary health, like weight and blood pressure, can also make your premiums go up. If you’re looking to save money on insurance premiums, an excellent way to do that is by shedding a few pounds.
Regular exercise and a good diet can work wonders on your waistline and wallet. It’s a win-win.
Your Options
When searching for life insurance, you have several policies to choose from; the three main types are term, permanent, and no-exam life insurance. Each of them has pros and cons.
The first type is term life insurance. These plans are the cheapest because they are only effective for a set time.
They are sold in various lengths: 5, 10, 20, 30 years, and just about everything in between. Once that set time is up, you no longer have coverage, and you’ll have to reapply for a different plan.
Permanent life insurance (also called whole life insurance) is precisely what it sounds like. These policies will remain in force for as long as you continue to pay the monthly premiums. You’ll never have to reapply or get a new approach.
These policies tend to be more expensive but generate a cash value as you continue to pay the premiums through the years. You even decide to look into a return of a premium rider. If you ever need it, you can take out a loan on the cash value, which is a nice feature.
The last of the big three is no-exam life insurance policies. These are the most expensive of the three and are usually a “last resort” for most people.
As you can probably guess by the name, these life insurance plans don’t require the applicant to take a medical exam to gain coverage. These plans are great for anyone with a severe health condition or disease that would cause them to be denied a traditional policy.
Life Insurance and Skydiving
If you enjoy skydiving, that shouldn’t keep you from getting the life insurance coverage that you and your family deserve. There are dozens of companies that will offer you an affordable life insurance policy that won’t force you to give up one of your favorite hobbies.
One of the worst mistakes you can make (aside from forgetting your parachute) is not buying life insurance. If something tragic happened to you, your family would be left with thousands of dollars in debt and no way to get through that difficult time.
The Bottom Line – Life Insurance for the Skydiving Enthusiast
In the exhilarating world of skydiving, safety and preparation are paramount. The same principles apply when seeking life insurance as a skydiving enthusiast. It’s a misconception that skydivers can’t secure affordable life insurance.
While it’s true that rates might differ depending on your skydiving frequency, equipment, training, and affiliations, many providers offer reasonable policies tailored for the adventurous at heart.
Being transparent and thorough when discussing your skydiving activities with potential insurers is essential.
Remember:
Embrace the thrill of the jump and the peace of mind that comes with comprehensive coverage.
