Skydiving has seen a surge in popularity over the last few years. It’s clear that skydiving is a unique activity which exhilarates some people and terrifies others. But what do the life insurance companies have to say about it? You may know that they tend to be among the “terrified group”. We work with more than 60 companies and know their views on skydiving. Which life insurance company is best for skydiving? Let’s discover!
Skydiving and Life Insurance Rates
Risk is the main factor that determines life insurance rates. If you are older, you will pay more because “Age is a factor of risk. The same goes for your health. You’ll pay more for a condition than someone who is in perfect health.
Skydiving falls into a different category: Hobbies. If you are applying for life insurance, the company will ask if you do any dangerous hobbies. Skydiving is listed by insurance companies as a hazardous activity. No matter how much experience you have in skydiving, it doesn’t really matter. It’s good to know that carriers treat skydivers differently. You can get life insurance that doesn’t restrict your hobby. You’ll pay more than someone who does not skydive for their coverage.
The Flat Extra
Insurance companies will charge you more for coverage if you participate in a risky activity like skydiving. You can expect an extra fee to cover your coverage. This fee, also called a flat extra is added to your regular rates of life insurance.
Skydiving Exclusion
A skydiving exclusion can help you keep your insurance costs low. This means you’ll still be covered, but you won’t receive any payouts if you are killed in a skydiving incident. You will not be charged an additional fee.
Blending Policies
You can combine two policies to reduce costs while still being covered for death in the event of a skydiving accident. You can choose to have one amount of insurance with an exclusion for skydiving and another amount with no exclusion.
Rate Examples For Skydivers
Let’s assume Greg is a man of 40 years, who loves skydiving. He applies for a $250,000 policy for a term of twenty years, and he is approved for Preferred Plus rates. Greg was approved at a preferred plus rate of $30 for a $500,000 policy with a term of 20 years. Let’s now see what skydiving does to that rate.
- $500,000 policy for 20 years with a Flat: $134 per month (add $2.50 to every $1000 of coverage).
- $500,000 policy for 20 years with exclusion of skydiving: $30 per month
- Combination of $250,000 exclusion policy for skydiving and $250,000 policy for skydiving: $17 per month + $69 per month = $86 per month
You already have life insurance, what now?
The good news is, if you recently started skydiving and have a life insurance policy, your rates won’t go up. When you first submitted your life insurance application you were asked several questions about your lifestyle, including whether you had skydived (within the last two years) or if you planned to do so in the near future. You can relax as long as you answer these questions honestly.