One thing that we know here at IBUSA is that you never want to find yourself in an argument debating whether or not it’s fair that someone who frequently skydives either can’t qualify for life insurance or is forced to pay more for his or her coverage than someone who doesn’t!
This is because…
What you’re likely to encounter is a very logical argument that will usually point out that those who do skydive on a consistent basis tend to be in better shape than many of us who don’t and statistically speaking, skydiving isn’t all that dangerous when compared to other “thrill-seeking” activities.
In 2018, there were only 13 recorded skydiving fatalities recorded after nearly 3.3 million jumps. Or to put it another way, that’s just one fatality per 253,669 jumps. Not bad!
The only problem is…
That all these fantastic numbers still aren’t going to change the minds of many insurance companies, which is why, if you do skydive regularly, you’re going to want to do your research before you decide to apply with any old company.
For this reason…
We wanted to take a moment and try and answer some of the most common questions we get from folks who do actively skydive so that we can help shed some light on what it might be like for you when applying for a traditional term or whole life insurance policy.
Questions which will be addressed in this article will include:
- Can skydivers qualify for traditional term or whole life insurance policies?
- Why do insurance companies care if any individual likes to skydive?
- What if I don’t claim that I am a skydiver or that I like to skydive on occasion?
- What factors may come into play when determining if someone will be able to qualify for coverage?
- What can I do to help improve my chances at qualifying for the “best” possible rate?
So, without further ado, let’s dive right in!
Can skydivers qualify for life insurance?
It is possible for skydivers to qualify for traditional term or whole life insurance policies, although the premiums (the amount you pay for coverage) may be higher due to the increased risk of death or injury associated with skydiving.
When applying for life insurance, insurance companies will typically assess your risk profile based on factors such as your age, health, lifestyle, and occupation. They will use this information to calculate the risk of insuring you and determine the premiums for your policy.
Engaging in high-risk activities like skydiving may be considered a negative factor in this assessment, as it increases the likelihood of an accident or injury. As a result, you may be charged higher premiums to compensate for the increased risk.
It’s important to keep in mind that each insurance company has its own underwriting guidelines and may assess risk differently, so it’s a good idea to shop around and compare quotes from multiple companies to find the best coverage at the most affordable price.
If you are a skydiver and are having difficulty finding a traditional term or whole life insurance policy that meets your needs, you may want to consider alternative options such as accidental death and dismemberment (AD&D) insurance or a critical illness policy.
These types of policies can provide financial protection in the event of an accident or illness, although they may have different features and benefits compared to traditional life insurance policies. It’s a good idea to speak with a financial advisor or life insurance agent to understand your options and choose the right coverage for your situation.
Why do insurance companies care if any individual likes to skydive?
Insurance companies assess an individual’s risk profile when determining the premiums (the amount you pay for coverage) for a life insurance policy. This assessment is based on a variety of factors, including your age, health, lifestyle, and occupation.
Engaging in high-risk activities like skydiving may be considered a negative factor in this assessment, as it increases the likelihood of an accident or injury.
Insurance companies use this information to calculate the risk of insuring you and determine the premiums for your policy. Higher-risk individuals may be charged higher premiums to compensate for the increased likelihood of a claim being made.
This is because insurance companies are in the business of managing risk and need to balance the premiums they charge with the potential cost of paying out claims.
What if I don’t claim that I am a skydiver or that I like to skydive on occasion?
It is generally considered a material misrepresentation to intentionally withhold or provide false information on a life insurance application. Material misrepresentation refers to information that is relevant to the insurance company’s decision to provide coverage and the premiums they charge.
So, if you are asked about your hobbies or activities on a life insurance application and you do not disclose that you engage in skydiving, it could be considered a material misrepresentation.
And if an insurance company discovers that you have made a material misrepresentation on your application after your policy has been issued, they may have the right to void your policy, which means it would no longer be in effect. This could leave you and your loved ones without the financial protection you were counting on in the event of your death.
It’s important to be honest and transparent when completing a life insurance application. While it may be tempting to omit information in an effort to secure a lower premium, doing so could potentially jeopardize your coverage and leave you and your loved ones vulnerable.
Now, if you are concerned about the impact of your hobbies or activities on your life insurance premiums, it’s a good idea to speak with a financial advisor or life insurance agent to understand your options and choose a policy that meets your needs and budget.
What factors may come into play when determining if someone will be able to qualify for coverage?
In addition to all the “normal” factors that will come into play when applying for a traditional term or whole life insurance policy such as (one’s):
- Height and weight,
- Presence of any pre-existing medical conditions,
- Family medical history,
- Tobacco use (or absence of),
- Any history of drug or alcohol abuse,
- Any marijuana use,
- Previous felony or misdemeanors,
- Driving record,
- Travel history,
Insurance companies are also going to be interested in the frequency in which you choose to jump out of a plane.
Now, if this is something that you may have only done once or twice in your life and it’s not something that you see yourself doing regularly, it’s quite possible that a life insurance company won’t really care about it.
In cases like these, you may even be able to qualify for a no medical exam life insurance policy at a preferred rate!
If you are more passionate about skydiving or choose to make a career out of doing it, chances are you’re going to find it much more difficult to qualify for coverage. It’s in cases like these you may find yourself in a variety of different situations including:
- Being denied coverage.
- Being approved for coverage at an OUTRAGEOUS cost.
- Being approved coverage, however, the insurance company has included an exclusion to your policy, which would prevent your policy from paying out if you died due to a skydiving accident or injury related to a skydiving accident.
Or you may be approved at a rate that seems quite reasonable.
“Which is always our goal here at IBUSA!”
Which brings us to the last topic that we wanted to take a moment and discuss with you, which is…
What can I do to help improve my chances at qualifying for the “best” possible rate?
Qualifying for the best life insurance rates as a skydiver isn’t a mystery. It’s all going to come down to “shopping” your options.
For example, while it may seem like a terrible idea to accept a life insurance policy that won’t provide one with coverage if they die due to a skydiving accident, it’s quite possible that a policy with that exclusion may actually be your best bet!
The reason for this…
Is because a policy like this may be affordable and can be supplemented with an Accidental Death Policy, which could be used to supplement your traditional life insurance coverage at an affordable rate.
So, by purchasing two separate policies, you can achieve the coverage that you’re looking for. This of course would only be true if there weren’t any kind of exclusions within the Accidental Death Policy which would also account for skydiving, so be sure to read your policy carefully because a lot of Accidental Death Policies will specifically exclude sky diving accidents from being covered!
Will these be the “best” option ever time? No, of course not!
But by choosing to work with an insurance brokerage that has access to dozens of different life insurance companies that offer hundreds of different “types” of insurance products, chances are you will be able to find the coverage that you’re looking for at an affordable rate!
It all comes down to you taking the time and speaking with an expert that knows how to help folks like yourself qualify for the coverage you desire. So, give us a call and let us show you how we can help!