At IBUSA, we know that you never want to argue about whether it’s fair for someone who frequently skydives to either not qualify for life insurance or be forced to pay more than someone who doesn’t. The reason is simple:
You’re likely to encounter a logical argument that those who skydive regularly tend to be in better physical shape than those who don’t. Statistically speaking, skydiving isn’t as dangerous as other thrill-seeking activities.
In fact, in 2018, there were only 13 recorded skydiving fatalities out of nearly 3.3 million jumps. To put it another way, that’s just one fatality per 253,669 jumps. Not bad at all!
However, insurance companies may not share this perspective, and this is where the problem lies. So, if you’re a frequent skydiver, you’ll need to research before applying for life insurance.
That’s why we’re here to help. In this article, we’ll answer some common questions we receive from active skydivers to shed some light on what it might be like for you when applying for a traditional term or whole life insurance policies. These questions include:
- Can skydivers qualify for traditional term or whole life insurance policies?
- Why do insurance companies care if someone likes to skydive?
- What if I don’t disclose that I’m a skydiver or like to skydive occasionally?
- What factors may come into play when determining if someone can qualify for coverage?
- How can I improve my chances of qualifying for the best possible rate?
Without further ado, let’s dive right in!
Can skydivers qualify for life insurance?
Yes, skydivers can qualify for life insurance. However, their premiums may be higher due to the increased risk of death or injury associated with skydiving. Insurance companies evaluate an individual’s risk profile based on factors such as age, health, occupation, and lifestyle.
High-risk activities like skydiving may negatively impact this evaluation and increase premiums. It’s advisable to compare quotes from multiple insurance companies and explore alternative options like accidental death and dismemberment (AD&D) insurance or critical illness policies if traditional life insurance is not a good fit.
Why do insurance companies care if any individual likes to skydive?
Insurance companies care if individuals like to skydive because it is considered a high-risk activity that increases the likelihood of accidents or injuries. When an insurance company evaluates an individual’s risk profile, it considers various factors such as age, health, occupation, and lifestyle.
Engaging in high-risk activities can negatively impact this assessment, resulting in higher premiums to compensate for the increased risk. Insurance companies use actuarial data to determine the likelihood of an individual experiencing a loss, and skydiving has a statistically higher chance of causing a loss than other activities. Therefore, insurance companies must consider skydiving when assessing an individual’s risk profile.
What if I don’t claim that I am a skydiver or like to skydive occasionally?
If you fail to disclose that you are a skydiver or that you engage in skydiving on occasion on your life insurance application, it could have serious consequences. When you apply for life insurance, you must provide accurate and complete information about your health, lifestyle, and other relevant factors that may affect your insurability. If you fail to disclose relevant information, it could be considered a material misrepresentation or concealment, which could lead to the denial of your claim or the cancellation of your policy.
In the case of skydiving, if you fail to disclose your participation in this activity, and you pass away due to a skydiving accident, your insurance company may investigate and potentially deny your claim if they discover that you were participating in high-risk activities that you failed to disclose. Therefore, it’s important, to be honest and accurate on your life insurance application to ensure that you have the appropriate coverage and avoid any issues with claims down the line.
What factors may come into play when determining if someone can qualify for coverage?
Several factors come into play when determining whether someone will qualify for coverage when applying for life insurance. The main factors include:
- Age: Life insurance companies consider age an important factor when evaluating risk. Generally, younger individuals are considered less risky to insure than older individuals.
- Health: Life insurance companies consider an individual’s health status and medical history when evaluating risk. Factors such as pre-existing medical conditions, family medical history, and current health status are all considered.
- Lifestyle: Life insurance companies assess an individual’s lifestyle to determine risk factors associated with their daily habits. Factors such as smoking, alcohol consumption, and participation in high-risk activities (like skydiving) can increase risk and impact insurability.
- Occupation: Some occupations, such as those that involve manual labor or work in hazardous conditions, can be considered high-risk and impact insurability.
- Coverage amount: The amount of coverage an individual is seeking may also impact their ability to qualify for coverage. Higher coverage amounts may require additional underwriting scrutiny, which could affect insurability.
- Financial history: Some life insurance companies may also consider an individual’s financial history, such as their credit score or financial stability when evaluating risk.
Each life insurance company has underwriting guidelines and may evaluate these factors differently. It’s essential to shop around and compare quotes from multiple companies to find the best coverage at the most affordable price.
If you are more passionate about skydiving or choose to make a career out of it, chances are you will find it much more challenging to qualify for coverage. It’s in cases like these that 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!”
This 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 of qualifying for the “best” possible rate?
Qualifying for the best life insurance rates as a skydiver isn’t a mystery. It all comes down to “shopping” your options.
For example, although accepting a life insurance policy that excludes coverage for skydiving accidents may seem like a bad idea, such a policy may be your best bet.
This is because such a policy may be more affordable and can be supplemented with an Accidental Death Policy that can provide additional coverage for skydiving accidents.
However, it’s essential to read your policies carefully, as many Accidental Death Policies specifically exclude skydiving accidents from coverage.
Of course, this approach may not always be the best option. That’s why it’s crucial to work with an insurance brokerage that has access to multiple life insurance companies and a variety of insurance products.
By speaking with an expert who knows how to help skydivers qualify for the coverage they need, you can find the coverage you desire at an affordable rate.
So, call and let us show you how we can help!
Frequently asked questions
Can skydivers qualify for life insurance?
Yes, skydivers can qualify for life insurance. However, the premiums may be higher due to the increased risk associated with the activity.
Will my skydiving hobby affect my life insurance premiums?
Yes, skydiving can affect your life insurance premiums. Engaging in high-risk activities like skydiving may be a negative factor in assessing your risk profile, leading to higher premiums.
What if I don’t disclose my skydiving hobby on my life insurance application?
It is important to disclose all relevant information on your life insurance application, including your skydiving hobby. Failure to do so may result in the denial of your claim or the cancellation of your policy.
Should I consider alternative options if I can’t find traditional life insurance coverage as a skydiver?
Suppose you are having difficulty finding traditional life insurance coverage as a skydiver. In that case, you may want to consider alternative options such as accidental death and dismemberment (AD&D) insurance or a critical illness policy. Speaking with a financial advisor or life insurance agent is crucial to understand your options and choose the right coverage for your situation.
Can my skydiving history affect my life insurance rates even if I haven’t gone skydiving recently?
Your past skydiving history can still impact your life insurance rates since insurance companies assess your risk profile based on your overall lifestyle and health history. However, if you have gone skydiving in the past and have no current plans of doing it again, most insurance companies won’t consider your previous activities as a future risk. In cases like these, your previous skydiving activities shouldn’t affect the outcome of your life insurance application.
Can I have a maximum number of skydives before my life insurance premiums increase?
No set maximum number of skydives will automatically increase your life insurance premiums. Each insurance company assesses risk differently, so it’s important to shop around and compare quotes from multiple companies to find the best coverage and rates.
Can I still qualify for traditional life insurance if I participate in other high-risk activities besides skydiving?
Yes, qualifying for traditional life insurance is still possible if you participate in other high-risk activities, but it may impact your rates. Insurance companies assess risk based on various factors, including overall health and lifestyle, so it’s important to disclose all relevant information when applying for coverage.
Can I purchase life insurance coverage specifically for skydiving?
While specialized insurance policies are available for skydiving, they may be more expensive or offer less comprehensive coverage than traditional life insurance policies. Speaking with a financial advisor or life insurance agent is a good idea to understand your options and choose the proper coverage.
Do some life insurance policies have exclusions for skydiving deaths/accidents?
Some life insurance policies may have exclusions for high-risk activities such as skydiving. These exclusions mean that if you were to die due to engaging in the excluded activity, your beneficiaries would not receive the death benefit payout from the policy. It’s important to carefully read and understand your life insurance policy and any exclusions that may apply. If you’re a skydiver, it’s imperative to look for a policy that doesn’t exclude skydiving or consider supplemental coverage such as accidental death and dismemberment insurance.