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In This Article, I’m Going To Specifically Discuss My Strategies To Help Those Who Sky Dive Find Affordable And Quality Life Insurance Without Paying More Than They Should
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation. Enjoy!
Most likely you’re reading this article because either yourself or a loved one skydives. You may have had problems trying to apply for coverage including being declined or rated through the roof. If you’re wondering what other options are available to you then you have found the right article.
Here’s an overview of today’s topic:
- Factors that make an impact on your level of insurability as a sky diver
- Should I tell the life insurance company I sky dive?
- How does flat extra pricing work?
- What types of life insurance are available for people who sky dive?
Factors that make an impact on your level of insurability as a sky diver
What factors affect sky divers looking for quality life insurance? There’s several factors we’re going to discuss that can have an impact on your eligibility for life insurance coverage approval. Let’s discuss each in detail so you can determine for yourself where you fit in the matrix of things and what your likelihood of coverage approval might be.
Are you a recreational sky diver?
If you are a recreational sky diver it is likely you will qualify for life insurance as long as you’re willing to pay what’s called a flat extra. We’ll discuss this in more detail in a moment, but it’s essentially a surcharge on top of your life insurance program.
Do you have a sky diving club membership?
There have been reports that insurance underwriters feel a little bit more comfortable with your application if you have some sort of sky diving club membership. This shows a level of expertise and commitment to the sport as well as a little bit more experience.
Are you a stunt man or instructor?
If you’re a stunt man or instructor, you may experience higher price points on your life insurance coverage simply because of your exposure to the high risk sport of sky diving. If you fall into this category, be prepared for a possible flat extra.
You may also pay extra coverage because of your age. Just like with any life insurance application, your current age will have an impact on the price you pay. Expect to pay more premium the older you are.
The younger you are, expect to get a better deal. Life insurance companies like younger people because they offer a longer period of time in which the company can collect on the recipient.
Most likely you’re reading this article because you’ve had difficulties as a sky diver getting approved for coverage. However, we don’t just look at the act of sky diving to find an individual a quality life insurance program. We also look at their overall health.
For someone to be willing to get on a plane and jump from thousands of feet up shows a level of health and youthfulness within itself. So if you are already a sky diver it’s likely that your health is going to be in good shape and be acceptable to many life insurance companies.
With that said, here are the kinds of conditions that we’re going to be looking for and asking about on your application. Be prepared to answer these in full transparency:
- Your height and weight
- A history of lung problems like asthma or CLPD
- Liver or kidney problems
- Heart issues such as stroke, stents, bypasses, heart attacks
- Neurological problems like Lupus, multiple sclerosis, Parkinson’s
- Mental health issues like depression, anxiety, PTSD, schizophrenia
- Recent hospitalizations or surgeries
- Orthopedic problems such as bad knees, hips, shoulders, elbows
- Any medications taken
All of these questions will be asked even if you are already a sky diver. Be prepared to provide as much information as necessary to help underwriters give an accurate assessment.
Do you smoke?
Should I tell the life insurance company I sky dive?
Absolutely never lie about anything when you’re applying for life insurance coverage. It may seem tempting to casually dismiss the importance of sharing every aspect of your life. But unfortunately, the details matter here.
If you willfully omit the fact that you sky dive at the time of application you put yourself at risk. If you end up dying from sky diving or some other related cause, but show a history of sky diving, you may find that you’re in a position where the company may contest your application and not pay the claim.
Don’t put your family in this position for the sake of saving a few bucks. It’s just not worth it to them. Be completely transparent, be completely honest, and share the details of your experience with sky diving.
While you may not see the price point you want to see initially, understand that if you work with a broker, you’ll find that you can shop around to get the best price overall. It is possible to pay a fair price and get high quality life insurance at the same time.
How does flat extra pricing work?
As mentioned earlier, a flat extra is probably something you’ll be looking at if you’re a sky diver, so it’s important to understand how this concept works.
Simply put a flat extra is a surcharge on top of your premium that you’re qualified for according to your health and lifestyle. Let’s take a look at an example and do the math so you can see how it makes sense:
Let’s say you’re approved for coverage at $500,000 and the coverage is $2,000 a year in premiums. However, the company offers a surcharge of $2 for every thousand dollars in coverage that you purchase.
If you do the math, for every $500,000 you’re going to pay an additional $1,000 a year on top of the $2,000.
This means your total out of pocket expense for both natural death and accidental death coverage as a sky diver is going to be $3,000 in coverage.
So there is the potential to pay much more for life insurance coverage because of your hobby.
What strategies exist to possibly get around the flat extra fee?
So a lot of people reading this have probably encountered the flat extra problem. They may be afraid they won’t be able to afford life insurance at the higher rate flat extra incurs.
Let me give you four different ways that I advise my clients to get around this problem so that they can apply and possibly get a better overall package.
1. First, make sure you take an exam. This is really important when you apply for life insurance coverage and have a high risk hobby like sky diving. An exam will include: giving a blood sample, a blood pressure check, and health questions for you to answer.
If you apply for a nonmedical policy without an exam, you may find that companies are much more inclined to decline your application or charge significantly more for coverage.
It’s worth it in the long run because you’ll save a significant amount of money on your premium payments. I’ve seen firsthand how an exam can save more than a thousand dollars a year on my life insurance simply because I opted for a one time medical exam in conjunction with my life insurance application. That experience made it a no brainer for me.
2. If you find that applying for life insurance coverage with the additional flat extra is going to be too much for you to pay, request an exclusionary rider on your policy. What this does essentially is it allows you to be covered in all other instances of your life insurance at full face amount, except for the point where you sky dive.
Understand with an exclusionary rider on your life insurance policy, if you die while sky diving, you’re loved ones will not be paid anything.
3. Alternatively, rather than walking away without any coverage, you can buy a Combo package. This is a cool trick – a compromise of sorts – to get life insurance coverage in both circumstances of death.
So here’s how the strategy works:
By two life insurance policies. One in which you will pay $300,000 which covers a natural death but has the exclusionary rider on it that won’t pay if you die while sky diving.
And then buy a life insurance policy that covers both a natural death and one involving sky diving. This policy will not have an exclusionary rider, but will have the flat extra fee on top of the regular policy.
What this gives you is $500,000 in total coverage that pays out under any circumstances and only $200,000 that pays out if you die because of a sky diving event or accident so that you get some kind of compromised coverage.
4. Last but not least, your other option could be to just pay the full price and be done with it. If you are someone who is actively sky diving and has no plans to slow down your sky diving adventures, you may just want to swallow the price and be done with it.
What types of life insurance are available for people who sky dive?
There are generally two different types of life insurance plans available, with a lesser used third option that some people decide to go with. Let’s discuss these options.
Term life insurance
This is the most common type of life insurance people buy. It’s the cheapest form of coverage that gives you the most coverage for the least amount. You typically have to take an exam to get approved for it or go through a non-medical application process.
Most people purchase term life insurance plans because they want to replace their income if they happen to pass away. Sometimes too they want to protect against losing their assets or cover obligations such as losing their home because of a mortgage.
Term Life Insurance Coverage – 10 Year Term – $100,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $250,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $500,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $1,000,000 in Coverage
Whole life insurance
Unlike term life insurance, whole life insurance generally does not cancel due to age or health. The premiums remain level over a period of time or throughout the policy’s lifetime.
The biggest downside to whole life insurance, and the reason why it is not as commonly purchased, is that whole life insurance costs about five to 10 times more per dollar of coverage relative to what a term life insurance plan costs. So purchasing a whole life insurance plan doesn’t necessarily do an adequate job of covering for future income losses if you die early recovering mortgage payments.
Rates For $10,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
$150,000 Whole Life Insurance, Life Pay
$250,000 Whole Life Insurance, Life Pay
Universal life insurance
Universal life insurance, much like whole life insurance, is usually purchased for final expense coverage or pension protection payment programs. It can be custom tailored to a permanent length and time.
I generally don’t recommend universal life insurance unless you buy a guaranteed universal life plan that guarantees the premium as long as that premium is paid for the entirety of the insurance lifetime. Another possibility is an index universal life plan, as long as it’s properly funded.
Universal life insurance can be helpful to people who want supplemental life insurance or have a retirement plan.