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?
Yes, individuals who like to skydive either recreationally or “professionally” can and often will be able to qualify for a traditional term or whole life insurance policy.
The only problem is…
That sometimes, insurance companies may charge an individual a “surcharge” due to their skydiving activities or may choose to add some type of EXCLUSION to an individuals life insurance policy which would state that the insurance company would not be VALID if an individual died while skydiving or died as a result of some type of injury they suffered from related to skydiving.
Most skydivers aren’t going to be all that interested in when trying to secure the “best” and “most affordable” life insurance policy out there.
Why do insurance companies care if any individual likes to skydive?
Seeing how the number one goal of any life insurance underwriter is to understand and avoid any “unnecessary” or “unacceptable” risk, it makes sense why most of the best life insurance companies are going to “care” if an applicant likes to skydive.
In addition to having to worry about someone dying due to a skydiving accident (which is rare), insurance companies also have to worry about the fact that you may get seriously injured as a result of a skydiving accident. Which, as one can imagine, isn’t as “rare” as dying!
What if I don’t claim that I am a skydiver or that I like to skydive on occasion?
This is something that you definitely don’t want to do. The main reason for this is because at the end of the day, a life insurance application is a legal contract in which an insurance company agrees to pay your loved ones a death benefit in exchange for payment.
And like all…
Legal contracts, it’s going to assume two things. First, it’s going to assume that both parties involved are of “sound mind,” and second, it’s going to assume that both parties are being truthful and honest.
Which means that when an insurance company asks you a question that will sound somewhat like this:
“In the past 5 years or so, has the proposed insured participated in, or does he or she intend to participate in any skydiving or parachuting or any other hazardous activities?”
They’re expecting you to be honest. And if you’re not, what you are effectively doing is leaving you open to having your life insurance application “contested”.
This means that if you are approved for coverage, and you do end up dying from an accident resulting from skydiving, there is a possibility that your insurance policy wouldn’t have to pay out!
Which means that your loved one’s wouldn’t be protected financially!
This is why you don’t lie on your life insurance application. Instead, you tell the complete truth and spend more time researching your options so that if and when to do decide to purchase a life insurance policy, it will be one that you know for sure is going to protect your loved ones like you intend it too!
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!