Skydiving is an exciting hobby enjoyed by millions of people. Every pastime has its own unique share of risks that come with the thrills. If you are a skydiver, you may be wondering how to get the right type of insurance to protect your future and your family. Skydiving and life insurance may seem like a tough combination of topics, but you may find it’s easier than you think to get this specialized form of coverage.
U.S. Skydiving Statistics, 2012
- There were 19 fatalities out of 3.1 million jumps
- There were 915 injuries reported for 3.1 million jumps
- Injuries for skydiving accounted for 3 injuries per 10,000 skydives
Can Skydivers Get Life Insurance?
You may be surprised to learn that there are insurance companies that provide specialized life insurance for skydivers. The types of insurance policies skydivers can buy include both term insurance and permanent insurance, which consists of whole life, universal life and variable life options.
Additionally, some companies offer special coverage for those who like to parachute, whether you perform a couple of dives per year or if you do it professionally.
How Much Does Life Insurance for Skydivers Cost?
Skydivers will pay a standard premium based on how they are rated, plus an additional cost called a "flat extra fee." This fee is an extra charge for what the life insurance companies call a “dangerous hobby.” Skydiving actually has one of the lowest flat extra fees on average, however.
The cost depends on whether the life insurance company considers you to a recreational skydiver (performing 50 jumps or less per year). For recreational skydivers, the flat extra fee will usually cost an additional $2.50 to $3.00 per thousand dollars of life insurance coverage. This amount increases as the number of jumps increases. The additional cost may be anywhere from $5.00 per thousand dollars of coverage for over 50 jumps, and up to $7.50 per thousand dollars of coverage for over 100 jumps per year.
Rates may also be less expensive if you are member of a skydiving club. Ask your independent agent if you qualify for discounts on your policy.
What Types of Skydiving Life Insurance Are Available?
You have several choices when buying life insurance for skydivers. You can buy regular life insurance policies like term insurance or permanent insurance. Permanent life insurance consists of whole life, universal life or variable life insurance policies. You can also opt for specialized life insurance policies, known as skydiving life insurance.
Here are your life insurance options:
- Term life insurance: This is the most affordable and basic life insurance available, as it covers death benefits only. Term life is purchased for a specific period of time, such s 10, 20, or 30 year periods, and will pay out death benefits if the policyholder passes before the term lapses.
- Permanent life insurance: This is a more costly life insurance option which covers you for your entire life as long as you continue to pay the premium. Permanent life insurance also includes an investment component. There are a few different types:
- Whole life: Whole life provides death benefits and a cash value accumulation feature. It has guaranteed premiums and a minimum guaranteed rate of return.
- Universal life: Similar to whole life, but you’re able to adjust the death benefits and have flexibility in how you pay your premium.
- Variable life: Variable life provides both death benefits and a cash value accumulation feature, but gives you the ability to choose how the money will be invested.
- Skydiver’s insurance: Skydivers insurance is specialized coverage tailored to your needs as a skydiver, and the risks you face when you’re jumping. Types of skydiver’s insurance include:
- Mandatory third party policy: This provides liability coverage and can also include accidents and injuries.
- Personal accident skydiver insurance: This provides compensation for accidents or death resulting from a skydiving accident.
- Travel insurance with skydiver coverage: This protects you with medical coverage when skydiving in another country, and can include coverage for your parachuting gear along with your luggage and personal possessions.
You may be able to reduce your costs on skydiving life insurance if you buy two separate policies instead of one large policy. For example, you could purchase one policy covering parachuting that requires the extra flat-fee rate, and another policy excluding parachuting with the same costs a non-parachuting person would pay for premiums. This way, you can close any gaps you may have in your life insurance coverage while still making sure you’re paying a reasonable premium rate.
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Should You Tell Your Life Insurer if You Are a Skydiver?
It is crucial to tell the truth if you are asked about hobbies or sports, such as skydiving, when you apply for life insurance coverage. Life insurance policies are subject tow a two-year contestability period. During this time, a life insurance company can cancel your policy or deny a beneficiary's life insurance claim if you are found to have falsified information on your life insurance application.