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In This Article I’m Going To Specifically Discuss Strategies To Help Those Who Skydive Find Affordable, High Quality Life Insurance Without Paying More Than They Should
Most likely you’re reading this article because either yourself or a loved one skydives and you may have had problems trying to apply for coverage. Perhaps you have been declined or rated through the roof, and you’re wondering what options are available at this stage. If this describes your circumstance then you’ve found the right article.
We will look at all of the factors that may impact your level of insurability as a skydiver and strategies to help you get a life insurance policy in place that meets your goals without breaking the bank.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation. Enjoy!
Here’s An Overview Of Today’s Topics:
- What Factors Affect Skydivers Looking For Quality Life Insurance?
- Should I Tell The Life Insurance Company I Sky Dive?
- Strategies To Get A Better Price
- What Kinds Of Life Insurance Types Are Available For People Who Sky Dive?
- Burial Insurance Rates, Age 40 To 90*
Factors that have an impact on your eligibility for life insurance coverage approval
There are several factors that 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 will be as a skydiver.
If you are a recreational skydiver, it is likely you will be qualified for life insurance as long as you’re willing to pay what’s called a flat extra. We’ll discuss flat extras in more detail in a moment, but it’s essentially a surcharge on top of your life insurance program. So be prepared for the potential of a higher premium than what you would pay if you were not a skydiver.
Sky diving club membership
There have been reports that some company underwriters feel a little bit more comfortable approving sky divers when they have some sort of sky diving club membership. A membership shows that you most likely have more experience than an amateur just starting out.
Membership also shows a commitment to the sport and that you take the sport seriously, which holds more sway than someone who occasionally skydives and has very little experience.
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 risk of skydiving, so be prepared for a possible flat extra and paying extra on any coverage you qualify for.
Just like with any life insurance application, your current age will impact your application and premium. Generally the younger you are, the less you will pay. Life insurance companies like younger people because they provide a longer period of time in which the company will likely collect payments but probably won’t have to pay out.
Your health has a direct impact on your ability to get qualified for life insurance as a sky diver. Most likely you’re reading this article because you’ve had difficulties as a skydiver getting approved for coverage. However, we don’t just look at skydiving when we are trying to find somebody a quality life insurance program. We also look at their overall health.
For someone to be willing to get on to a plane and jump from thousands of feet up automatically shows a level of good health and youthfulness, so it’s likely that you won’t have to worry too much about your health negatively affecting your coverage options.
With that said, here are the kinds of conditions that we’re going to be looking for and asking about on our applications. Be prepared to answer these questions with full transparency.
- Your height and weight
- Recent hospitalizations or surgeries
- Current medications, if any
- Do you have a history of…
- Lung problems like asthma or CLPD
- Liver or kidney problems
- Heart issues such as stroke, stents, bypasses, heart attacks
- Neurological problems such as Lupus, multiple sclerosis, Parkinson’s
- Mental health issues such as depression, anxiety, PTSD, schizophrenia
- Orthopedic problems such as bad knees, hips, shoulders, elbows
Most likely all or some of these questions will be asked, so expect to provide as much information as necessary to help the underwriters have an accurate assessment of your current health status.
Should I tell the life insurance company I sky dive?
Absolutely never lie about anything whenever 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 it’s what’s required to get coverage in place that will function properly when you need it most.
If you willfully omit the fact that you sky dive at the time of application and you show a history of it and end up dying while sky diving, you may find that you’re in a position where the company may contest your application and it may not pay the claim. Don’t put your family in a position like this for the sake of saving a few bucks a month. It’s just not worth it.
Be completely transparent, be completely honest and share all the details that involve your skydiving activities. 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 and coverage.
How does flat extra pricing work?
As mentioned earlier, a flat extra is probably something you’ll be looking at if you’re a skydiver, 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 may affect you. Let’s say you’re approved for $500,000 in coverage 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, that means you’re going to pay an additional thousand dollars a year on top of the base $2,000 premium, which means your total out of pocket expense is going to be $3,000 a year.
Strategies to get a better price
Probably a lot of people reading this are concerned about what a flat extra could mean for their premium and they worry about being able to afford life insurance at such a high rate. What strategies exist to possibly get around this? Let me give you four different ways I advise my clients to possibly get a better overall package deal.
Make sure you take an exam
I really think it’s important that when you apply for life insurance and have a high risk hobby like sky diving or scuba diving that you make sure that you apply for life insurance coverage with an exam. You don’t want any stone left unturned, and if you apply for coverage with a non-medical policy, you may find that companies are much more inclined to decline you or significantly rate up your coverage.
I recommend applying for life insurance coverage that gives you the ability to take an exam. Sure they’re gonna withdraw blood. Take your blood pressure. Ask you health questions. But 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 this strategy can save more than a thousand dollars a year on life insurance premiums 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. In most circumstances I think individuals are healthy and taking an exam can only offer a positive outcome.
Buy exclusionary insurance
If you find that you’re worried that the additional flat extra is going to be too much of an additional cost, request an exclusionary rider on your policy when you apply. This essentially allows you to be covered in all other aspects of your life, except for when you sky dive. So if you were to die while sky diving, you would not be covered.
If you don’t mind taking this risk, it may be a good way to get coverage on the books without shelling out more money for a flat extra.
Alternatively, buy a combo package
This is a cool trick to get life insurance coverage by way of a compromise of sorts. You buy two life insurance policies. One at $300,000 that will cover if you die of natural causes, but has the exclusionary rider on it that won’t pay if you died because of a sky diving death. Then you buy an additional life insurance policy at $200,000 that pays out for natural and accidental death, including sky diving, and does not have an exclusionary rider, but has the flat extra fee on top of it.
What this gives you is $500,000 in total coverage that pays out under any circumstances, whether you die from sky diving or not.
Get full price coverage with a broker
Last, but not least, your other option is to simply pay the full price of regular coverage and a possible flat extra and be done with it. If you are someone who actively sky dives on a regular basis and has no plans of slowing down any time soon, you may just want to swallow the price and be done with it.
What kinds of life insurance types are available for people who sky dive?
Generally there are three different types of life insurance plans available: term, whole, and universal life insurance. Let’s discuss each one in further detail.
Term Life Insurance
This is the most commonly purchased type of life insurance. 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 term insurance or go through a non-medical application process.
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
Most people purchase term life insurance plans because they want to replace their income if they happen to pass away, protect against losing their assets, or cover obligations such as a mortgage.
Whole Life Insurance
Whole life insurance, unlike term life insurance, does not cancel due to age or health. Generally the premiums remain level throughout the policies lifetime and can sometimes be paid up in full where payments are no longer required but coverage remains intact.
Whole life insurance can develop a cash value from which you can borrow against while you are alive. Generally the biggest downside to whole life insurance, and why it’s not as commonly used, is that it costs about five to 10 times more per dollar of coverage relative to what a term life insurance plan costs.
Purchasing a whole life insurance plan doesn’t necessarily do an adequate job of covering for future income losses if you die early. Most people who purchase whole life insurance do so for final expense coverage or pension protection payment programs.
$150,000 Whole Life Insurance, Life Pay
$250,000 Whole Life Insurance, Life Pay
Universal Life Insurance
$50 a Month – Guaranteed Universal Life Insurance
$100 a Month – Guaranteed Universal Life Insurance
$150 a Month – Guaranteed Universal Life Insurance
Much like whole life insurance, universal life insurance is a permanent plan, but it can be custom tailored to a particular length of time or a certain age at which coverage would end. The premiums on these plans are flexible but must be designed with care because if they are improperly funded coverage can lapse well in advance of when it is supposed to end.
I generally don’t recommend this type of plan 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, or possibly an index universal life plan as long as it’s properly funded.
Burial Insurance Rates, Age 40 to 90*
Rates for $5,000 in Burial Insurance
Rates for $10,000 in Burial Insurance
Rates for $15,000 in Burial Insurance
Rates for $20,000 in Burial Insurance
Rates for $25,000 in Burial Insurance