Skydiving’s popularity has soared to new heights over the past several years. There’s no question that this unique pastime terrifies some and exhilarates others, but what does it do for life insurance providers? As you may already know, they are generally with the “terrified” group. But we work with over 60 different insurance companies, and we know what they are looking at as far as skydiving goes.
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The Flat Extra
If you skydive, insurance companies see you as partaking in an extra risky activity. Because of this, you can expect to be charged an additional fee for coverage. This fee is also known as a “Flat Extra”, and it goes on top of your regular life insurance rates.
One way to keep your costs as low as possible is to get a skydiving “exclusion” on your policy. Essentially, this means that you will still have coverage, but your beneficiaries will not receive a payout if you die in a skydiving accident. On the bright side, you will not pay an extra fee.
If you are interested in lowering costs but still want to be covered in case you die while skydiving, another option is to get a blend of two different policies. Basically, you can have a certain amount of coverage with a skydiving exclusion and another amount of coverage that does not exclude it. You would then be paying two different rates (one more expensive than the other), but added together it would still, in most cases, be cheaper than one policy with full coverage and a flat extra added on.
Rate Examples for Skydivers
Let’s say Greg is a 40-year-old man who enjoys skydiving. He applies for a $250,000 policy for a term of 20 years and is approved at Preferred Plus rates (the best available). For a $500,000 policy for a 20-year term, Greg is approved for a Preferred Plus rate of $30. Now let’s see how skydiving affects that rate:
$500,000, 20-year policy with a Flat Extra: $134 a month (add on $2.50 per $1000 in coverage)
$500,000, 20-year policy with skydiving exclusion: $30 a month
Combined $250,000 skydiving exclusion policy and $250,000 skydiving policy: $17 a month + $69 a month = $86 a month
So, it really all boils down to how much coverage you want when it comes to your skydiving activity, as well as how much you are willing to shell out each month for life insurance in general. You can start comparing rates today by using the quote form on this page.
But I Already Have Life Insurance, Now What?
If you have life insurance and have only recently taken up skydiving, the good news is that your rates will not go up. As you may remember, when you originally sent in your life insurance application, you were asked a series of questions about your lifestyle— including whether or not you had been skydiving (within the past two years) or had the intention of doing so in the future. As long as you answered these questions as honestly as possible, your rates will remain the same and you can rest easy.
Life Insurance for Skydivers
If you are a skydiver and are interested in getting the best life insurance coverage possible, please call us today at 888-411-1329 or fill out our online contact form. We’ll get in touch as soon as possible with a customized quote and more information on the policies available for you.