If you skydive and looking for life insurance, this blog post will cover everything you need to know to find out the options you have for getting life insurance for skydivers.
Naturally, skydiving adds an added level of risk to a life insurance company. To understand how life insurance companies price life insurance for skydiving, you first need to understand what a Flat Extra means.
What is a Flat Extra?
A flat extra is a method an insurance company uses to charge an additional fee on top the regular rate. In the example of skydiving, let’s say you are a 40 year old male and you get approved at preferred plus rates for a 20 year term life policy. Your rate would be about $30 per month.
As a Skydiver if you want your policy to cover you in case of death due to skydiving, there is an additional cost – or flat extra. The Flat Extra for a skydiver who skydives less than 50 times per year is $2.50 per $1000 in insurance coverage. In our example above your policy would go from $30 per month to $134 per month and cover you if you died for any reason, including skydiving.
What Can you Do to Lower your Premiums if you Skydive?
You can keep your costs down if you choose to get a policy with an exclusion for sky diving. This means that in our example above, you would pay the $30 a month premium, however your family would not get a death benefit if you die while skydiving.
How Can I still have coverage for Skydiving and Lower my Costs?
A strategy to have coverage in case the worst does happen while sky diving is to have a blend of 2 policies. If you wanted to have $500,000 worth of coverage you can get a $250,000 policy without coverage for skydiving and a $250,000 with coverage for skydiving. Going back to our example of a 40 year old male at preferred plus rates, a $250,000 policy with the exclusion of skydiving would beabout $17 per month. A $250,000 with skydiving would be $69 per month. The total cost of the $500,000 policy would be $17 + $69 which is $86. This is a 30% discount from the original example of $134 per month above and a strategy that can save you money and still provide coverage in case of death while skydiving.
What If I Already Have a Life Insurance Policy?
If you already have a life insurance policy and just started skydiving then your pricing will not go up. When you originally applied for life insurance you were asked if you have been skydiving over the last two years, or intend to sky dive. As long as you were being honest in your answer and were not intending to sky dive, but just decided to pick up the hobby, then you are okay and your rate will not increase.
The good news is that you can get approved for life insurance as a skydiver. Getting the right policy depends on what your goals are for coverage, how often you dive, and finding a solution that fits in within your budget. Fill out our quote form and we can help you with a quote for life insurance for skydivers and find the right coverage at the best price from among 30 highly qualified life insurance companies.
Author: Liran Hirschkorn