Life insurance for skydivers
Skydiving is an exhilarating adventure that combines adrenaline, breathtaking views and the thrill of freefall. But with any extreme sport comes an element of risk, and skydiving is no exception. According to the United States Parachute Association (USPA), skydivers made an estimated 3.65 million jumps in 2023. Out of these, only 10 resulted in fatalities — a record-low rate of 0.27 deaths per 100,000 jumps, suggesting that skydiving is safer than ever. However, even with advanced safety equipment and training, the majority of skydiving accidents stem from human error, such as landing misjudgments by experienced jumpers pushing limits.
For those who enjoy the freedom of the skies, securing life insurance may require some extra consideration. Insurers may view skydiving as a higher-risk activity, which can influence coverage options and premiums. Whether you’re a seasoned jumper or just embarking on this high-flying hobby, Bankrate is here to help you navigate the intersection of skydiving and life insurance, ensuring that your loved ones are financially protected while you take the leap.
Skydiving and life insurance premiums
For many, skydiving is a once-in-a-lifetime bucket list experience — a thrilling moment of freefall that likely won’t impact your life insurance approval or premiums. However, if skydiving is a regular hobby or you work as an instructor, it’s a different story. Insurers assess risk carefully, and frequent skydiving typically places applicants in higher risk categories, which can lead to elevated premiums or, in some cases, policy exclusions.
When determining premiums, life insurance companies evaluate a range of factors, including age, health, medical history and lifestyle. Extreme sports like skydiving often add complexity to this process. While one insurer may simply charge a higher rate for regular skydivers, another may deny coverage entirely. That’s why shopping around and comparing quotes from multiple insurers is helpful, as each company has its own underwriting guidelines and tolerance for high-risk activities.
If you’re passionate about skydiving, it’s important to be upfront about your hobby during the application process. Full transparency helps ensure that your policy will protect your loved ones, regardless of how often you take to the skies. By researching your options and understanding how insurers weigh skydiving risks, you have better odds of securing a policy that balances protection with affordability.
Higher premiums
Skydiving’s reputation as an extreme sport makes it a red flag for many insurers, despite its relatively low fatality rate of 0.27 deaths per 100,000 jumps in 2023. If you participate in skydiving regularly, insurers may label you as a high-risk applicant, which often results in higher premiums. However, the way insurers handle this risk can vary, and it’s important to understand your options.
Some insurers may impose a flat extra fee instead of categorizing you in a higher-risk class. A flat extra is an additional dollar amount per $1,000 of coverage added to your premium. For instance, if you have $500,000 in coverage and a flat extra of $2 per $1,000, your annual premium will increase by $1,000. This approach allows insurers to address the added risk of skydiving without completely reshuffling your risk profile.
Alternatively, some insurers may choose to include a skydiving exclusion in your policy. This means that if you die as a result of a skydiving incident, your beneficiaries won’t receive the death benefit, but other causes of death would still be covered. While this exclusion may not appeal to avid skydivers, it could still be an option worth considering if you need affordable coverage and only skydive occasionally.
Regardless of an insurer’s approach, honesty is important when applying for coverage. Attempting to hide your skydiving hobby in the hopes of securing a lower rate can lead to insurance fraud, which may result in denied claims or even legal consequences. By being upfront and exploring multiple insurers, you can have a higher chance of finding a policy that meets your needs — even if you love jumping out of planes.
Denial of coverage
While some life insurance companies may accommodate skydivers with higher premiums or exclusions, others might deny coverage altogether if they consider the activity too high-risk. This can be frustrating, especially if you’re otherwise healthy and meet all other underwriting criteria.
If you’re denied coverage, don’t lose hope. Every insurer evaluates risk differently, and a denial from one company doesn’t mean you’re uninsurable. Some insurers specialize in covering individuals with adventurous hobbies, like skydiving, and may be more willing to work with you. It’s important to get multiple quotes and explore various options to find an insurer that aligns with your needs. Partnering with an independent insurance agent or broker who understands the nuances of insuring high-risk activities can also help you navigate the process and secure the right policy.
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Whole life insurance combines life insurance with an investment component.
- Coverage for life
- Tax-deferred savings benefit if premiums are paid
- 3 variations of permanent insurance: whole life, universal life and variable life include investment component
Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.
- Fixed premium over term
- No savings benefits
- Outliving policy or policy cancellation results in no money back
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Life insurance for skydivers
Skydivers have options for life insurance just like anyone else and may choose to apply for coverage from a variety of life insurance companies, including those that offer term life or permanent life insurance policies. Working with an agent or using a life insurance calculator might help you decide which type and how much coverage to buy.
Term life insurance
Term life insurance can be a practical choice for skydivers looking for straightforward and affordable coverage. This type of policy provides protection for a specific period, typically 10, 20 or 30 years, making it great for covering temporary financial obligations like a mortgage, student loans or the costs of raising children. If you pass away while the policy is active, your beneficiaries receive the death benefit, offering financial security during critical years.
One feature to keep in mind is convertibility. Many term policies include the option to convert to a permanent policy before the term expires, typically without requiring any medical underwriting. This allows skydivers to secure more affordable term coverage now, with the flexibility to transition to lifelong protection later, should their needs or circumstances change. Term life insurance is often a practical starting point for those balancing the costs of skydiving and other financial commitments while ensuring their loved ones are protected.
Permanent life insurance
Permanent life insurance offers lifelong coverage, ensuring your beneficiaries receive a death benefit regardless of when you pass away, as long as premiums are paid. These policies remain active until a maximum age — typically between 95 and 121, depending on the insurer and the specific policy. This makes permanent life insurance a strong choice for skydivers seeking ongoing financial security for their loved ones.
One distinguishing feature of permanent life insurance is its cash value component. Over time, this cash value accumulates and can be accessed through policy loans or withdrawals — depending on the policy. While this feature adds financial flexibility, it’s important to remember that borrowing against the cash value incurs interest and reduces the death benefit if not repaid. Additionally, it’s important to keep in mind that cash value shouldn’t be viewed as an investment vehicle. It’s simply a perk of permanent policies and grows at a modest rate depending on the policy type and insurer.
Permanent life insurance comes in several forms, including whole life and universal life. Each offers unique benefits, such as fixed premiums or flexible coverage options, allowing skydivers to tailor their policy to meet their long-term financial goals while ensuring peace of mind for their families.
Riders for skydivers
Riders, or policy add-ons, allow you to customize your life insurance coverage to suit your needs as a skydiver better. While riders are not specific to skydiving, certain ones can offer extra layers of financial protection or flexibility:
- Accidental death and dismemberment (AD&D): This rider provides additional compensation for accidents that result in death or the loss of specific body parts or functions, as defined by the insurer. If skydiving is a covered activity under the rider and an accident occurs, your beneficiaries may receive the policy’s death benefit or additional payouts depending on the circumstances.
- Waiver of premium rider: Skydiving premiums can be costly, and keeping up with payments could become challenging in the event of a disability. A waiver of premium rider ensures that if you become disabled and meet your insurer’s qualifications, you won’t need to continue paying premiums to keep your policy in force.
- Child rider: This rider extends a small amount of life insurance coverage to your children. It can provide financial peace of mind in the unlikely event of a child’s death, typically covering funeral or other related expenses. Some policies allow this rider to be converted into permanent life insurance for the child later in life without requiring medical underwriting.
- Accelerated death benefit rider: If you are diagnosed with a terminal illness, this rider allows you to access a portion of your policy’s death benefit while you’re still alive. This can be especially valuable for covering medical expenses, hospice care or other end-of-life costs.
- Return of premium rider: For skydivers who opt for term life insurance, this rider refunds your premiums if you outlive your policy term. While typically more expensive than other riders, it may appeal to those who want to recoup some of their investment in their coverage.
Not all insurers or policies offer every rider, and availability may depend on your age, health or the type of policy you choose. Some riders are included at no extra cost, while others may come with an added fee. Be sure to review your options carefully and discuss eligibility with your insurance agent to find the riders that best suit your needs.
What happens if I lie about skydiving on my life insurance application?
Lying on your life insurance application might seem like a harmless shortcut, but it’s a dive into dangerous territory. If your agent or the application asks whether you skydive, honesty isn’t just the best policy — it’s a requirement. Falsifying information could lead to your application being denied, your policy canceled or even allegations of insurance fraud. And if the truth comes out after a claim — particularly during the contestability period — your beneficiaries might not receive the death benefit, leaving your loved ones in a financial freefall.
That said, life insurance is based on your lifestyle at the time you apply. If skydiving wasn’t on your radar when you secured your policy, but you decide to take a one-off leap years later, you’re in the clear. Insurers assess your risk based on your activities when the policy is issued, not what thrills you chase down the line.
Bottom line? Be upfront from the start. A little honesty now saves you and your loved ones from a lot of turbulence later.
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