Are you an adrenaline-junkie, or love riskier activities such as scuba diving and skydiving?
If so, you’ve probably already thought about life insurance as a part of your safety plan.
It’s important to have life insurance in place, but participating in risky activities can make it more difficult to secure a policy.
Fear not! This blog post will explain the options available and provide guidance on finding life insurance coverage for those engaging in high-risk activities like skydiving. Let's dive in.
Understand the risks of skydiving
To better understand why your life insurance options are different as a skydiver, it is first important to acknowledge the risks that come with skydiving.
Skydiving is considered a high-risk activity by insurance companies due to the potential for serious injury or death associated with an uncontrolled dive or parachute malfunction.
The most common injuries involved with skydiving are fractures and sprains, followed by cuts and bruises. Furthermore, the majority of skydiving injuries are caused by human error, such as improper landing techniques, failure to follow safety procedures, and poor judgment.
Make sure to familiarize yourself with any restrictions on life insurance policies, especially regarding high-risk activities, as this will help you decide what life insurance policies are right for you, and in what cases you are covered.
Can you get life insurance if you skydive?
Yes, it is possible to get life insurance if you skydive. Many insurers take into account the activities you engage in when deciding your coverage eligibility. While some may not consider skydiving an extreme sport or even factor it into their assessment, others will.
With some insurers, you may need to pay higher monthly premiums or exclude skydiving from your coverage altogether, depending on the insurer's policies.
If you are a skydiver and are looking to buy life insurance, it's important to disclose your skydiving activities to the insurer during the application process. Failing to disclose this information could result in the denial of your claim in the event of an accident.
You'll likely be able to secure affordable life insurance coverage, but you may need to add riders (or features) to your policy in order to ensure that skydiving does not affect its usefulness.
How does skydiving affect life insurance underwriting and rates?
The good news is that even if you are an avid skydiver, you can still get life insurance. Although skydiving and other high-risk activities might complicate the underwriting process and result in higher costs of life insurance, the majority of life insurers still provide coverage for adventurous people.
It's important to be honest with your life insurance company and be open about your lifestyle habits before making a purchase. This ensures that they are able to accurately assess your policy risk and determine the expected premium. Such transparency will help ensure you get the best rate possible for your life insurance policy while ensuring that it pays out when your beneficiaries make a claim.
Does life insurance pay out for skydiving accidents?
This depends on what your life insurance policy contract covers. Depending on the type of term life insurance you purchase, it may still pay out if something were to happen while skydiving.
Many life insurance policies do cover death resulting from skydiving accidents, but some policies may exclude coverage for high-risk activities like skydiving. Even companies that exclude death benefits related to skydiving may ensure that your family is taken care of, even if only with a reduced payout.
It's important to note that if you misrepresent your skydiving activities or other high-risk hobbies on your life insurance application, the policy may be voided or the payout reduced upon your death. Therefore, it's important to be honest during your insurance application to avoid any potential issues with your policy.
If this is something you're concerned about, make sure to ask your insurer what they will cover, and review your life insurance policy's terms and conditions so you understand any exclusions or limitations that may apply, including those related to high-risk activities like skydiving.
Factors insurers consider when applying
Most insurers take into account an applicant’s age and health, occupation and hobbies, the amount of insurance coverage, and the applicant's current debt when underwriting a life insurance policy.
In rare cases when an individual participates in risky activities that can lead to death or injury, such as skydiving, insurers may ask a few more questions about the applicant such as:
Frequency of skydiving: Insurers will consider how often you go skydiving. If you go skydiving frequently, it may increase your risk of injury or death and result in higher premiums or policy exclusions.
Experience: Insurers will also consider your level of experience as a skydiver. Experienced skydivers may be considered less of a risk than those who are less experienced.
Safety record: Insurers will consider your safety record as a skydiver, including any accidents or injuries you may have had while skydiving. This is why it is important to keep track of your skydiving injuries.
Other hobbies or activities: If you participate in other high-risk hobbies or activities such as scuba diving, bungee jumping, or rock climbing, insurers will consider these activities when evaluating your risk.
Types of life insurance for skydivers
Fortunately, there are options available for skydiving enthusiasts that can provide your loved ones with financial protection. Skydivers can typically get the same types of life insurance coverage as non-skydivers, including term life insurance, whole life insurance, and universal life insurance. Here are some types of life insurance available to skydivers:
Term Life Insurance: This life insurance policy provides coverage for a specific term, usually between 10 - 30 years. It is generally the most affordable life insurance coverage option.
Whole Life Insurance: This type of policy offers coverage for a policyholder’s entire life. It also includes a cash value component that grows in value over time.
Universal Life Insurance: This is a type of life insurance policy that offers more flexibility than whole life insurance, allowing policyholders to adjust their premium payments and death benefits over time.
Accidental Death and Dismemberment (AD&D) Insurance: AD&D insurance provides coverage in the event of accidental death or injury. This type of policy may be more suitable for skydivers, as it typically provides coverage specifically for accidental deaths, including those resulting from skydiving accidents.
For any of the life insurance policies above, there are options where you will be covered for skydiving. However, no two policies are alike.
You may be able to find a specialized insurance company that offers policies specifically tailored to skydivers and other high-risk individuals. It's important to note that skydivers may face higher premiums or exclusions related to their skydiving activities when applying for life insurance coverage.
Therefore, shop around and compare policies from multiple insurance providers to find the best coverage and rates for your individual needs.
Why is life insurance important for a skydiver?
Life insurance is important for skydivers, just as it is for anyone else, to provide financial protection for your loved ones in the event of your unexpected death.
If a skydiver were to pass away unexpectedly (for any reason), their life insurance policy would provide a lump sum payment to their designated beneficiaries. This payment could be used to cover expenses such as funeral costs, outstanding debts, and ongoing living expenses for their loved ones.
Without life insurance coverage, the financial burden of a skydiver's unexpected death could fall on their family members and dependents, potentially resulting in significant financial hardship. Therefore, it's important for skydivers to have appropriate life insurance coverage to ensure that their loved ones are protected in the event of their death.
How do skydivers calculate their life insurance rates?
Since insurance companies consider skydiving to be a high-risk activity, skydivers may face higher life insurance rates or exclusions. Insurance companies will calculate the rates for skydivers based on several factors, including:
- Frequency of diving
- Experience Level
- Safety record
- Age and health
- Type of policy and coverage amount
- Insurance company
Insurance rates for skydivers vary depending on these factors. It's important for skydivers to shop around and compare policies from multiple insurance providers to find the best coverage and rates for their individual needs.
Best life insurance for skydivers?
There is no one "best" life insurance policy for skydivers, as the type of policy and coverage amount that’s right for you depends on your individual needs. With research and careful decision-making, you can find the right life insurance policy that suits your budget and lifestyle. Here are some considerations that can help skydivers choose the best life insurance policy for their needs:
Accidental death coverage: Since skydiving is a high-risk activity, skydivers may want to consider purchasing accidental death and dismemberment (AD&D) coverage as part of their life insurance policy. AD&D coverage provides a lump sum payment to the beneficiary in the event of accidental death or serious injury, which may be more likely to occur during skydiving activities.
Coverage amount: Skydivers should consider how much coverage they need to ensure that their loved ones are financially protected in the event of their unexpected death. This may include factors such as outstanding debts, funeral costs, and ongoing living expenses for their dependents.
Exclusions and limitations: Skydivers should carefully review the policy's exclusions and limitations related to skydiving activities. Some policies may exclude coverage for skydiving altogether, while others may impose certain restrictions or limitations.
Cost: Skydivers should compare policies from multiple insurance providers to find the best coverage and rates for their individual needs.
It is important for people who participate in high-risk activities to work with an experienced insurance agent who understands the unique needs and risks associated with such activities.
Keep a logbook of your jumps and any injuries that you have had
It is essential for skydivers to document their jumps in a logbook in order to prove to life insurance companies that they take safety seriously.
Keeping track of the details of each jump, including any injuries or incidents experienced during the jump, can help reassure insurers that the insured skydiver is taking the proper precautions and is knowledgeable about the sport. Additionally, having an accurate record of your jumps might help decrease your premiums by demonstrating a positive track record in safe skydiving.
Some insurance companies may require skydivers to provide details about their skydiving experience, including the number of jumps they've completed, any certifications they hold, and any injuries they've sustained while skydiving. By keeping track of this information, you are ensuring that you can provide accurate and up-to-date information to your insurer.
Furthermore, keeping track of your jumps and injuries can be important for your own safety and risk management. By keeping a detailed record of your experience and injuries, you can identify any patterns or areas where you may need to improve your skills or take additional safety precautions.
For skydivers, life insurance is crucial as it provides financial security in the event of an accident or injury.
When underwriting life insurance for skydivers, insurers consider various factors such as age, health conditions, type of jump, frequency of jumps and more. It is also important for skydivers to keep a logbook to document past jumps and any injuries that might have occurred.
If you have any questions about life insurance as it relates to skydiving or if you are looking for additional information regarding life insurance, feel free to contact a Dundas Life licensed advisor today.
Frequently Asked Questions
Will I be asked how often I skydive each year?
These details are used by insurers to determine whether you often dive for fun or for business. Although it differs by business, most insurers will raise your premiums if you participate ten or more times a year.
What if I decide to skydive after having a life insurance policy?
When skydiving, if you already have a life insurance policy in place, you might be covered if something goes wrong, provided you didn't lie on the application. Inform your life insurance provider of your plans and speak with a representative to determine whether your coverage would be extended in the worst-case scenario.
If you’re skydiving as a one-time thing on vacation, you are generally still covered. If you skydive recreationally, this is something you should let your insurer know. If you’re ever unsure, you can contact your life insurer for more information.
Does Life Insurance Cover Accidents Involving Scuba Diving & Skydiving?
Life insurance may cover incidents from scuba diving and/or skydiving, depending on your coverage. But, before you decide to go diving, you should first assess whether you have a current life insurance policy or if you want to obtain one.