Life insurance for skydivers

OK... I am a total newbie here, Hello to you all! I was chatting with friends the other day and we got on the subject of Insurance. Someone during this conversation said that if Insurance companies in the USA find out your a sky diver, they can cancel your life insurance completely. Anyone know anything about this?

It really sepends on the Underwriter. Some do, some don't.

Yeah but doesn't size work the wrong way round in skydiving night?

I have an exclusion clause on my life - and a loading on my disability.

t

When I got my life insurance policy I was going to have an adendum which would provide payment in the event to a death while skydiving. My insurance company was going to charge me an extra 150.00 a month of the policy. I couldn't afford that so I had it removed. I still have the life insurance but it wont pay if I die while skydiving. Check with your insurance company and see what they offer. Its going to be costly though

Ask your agent. I'm OK with my policy because it was taken out two years before I started skydiving.

Judy

Mine has a rider on it. More money but not terrible. I think 10 - 15 dollars a month.

The wierd part is when I got it (10 + years ago) they asked how many jumps a year I made. More than 50/year costs more.

Seems backward to me but I guess actuary tables work just by numbers and don't take being current (I think more safe) into account.

If you want accidental coverage that covers skydiving, look into Combined Insurance. They will cover skydivers, and they are quite reasonable in price. They pay up too... I know a couple of broken skydivers that have been glad they got it.

They offer life insurance policies as well... not sure how that one works out, though.

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Yeah but doesn't size work the wrong way round in skydiving night?

Only as perceived by "small" minds.

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Mine has a rider on it. More money but not terrible. I think 10 - 15 dollars a month.

The wierd part is when I got it (10 + years ago) they asked how many jumps a year I made. More than 50/year costs more.

Seems backward to me but I guess actuary tables work just by numbers and don't take being current (I think more safe) into account.

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Reminds me of a conversation I had many years ago with one of the biggest life insurance companies in Canada.
They said that a private pilot who flies more than 50 hours per year was low risk (Transport Canada, along with most flying instructors and insurance companies agree), but said the opposite about skydiving. He said that if I made more than 50 jumps per year I was a higher risk and would have to pay extra. I stomped out in disgust and have never bought life insurance.

I used to be an agent for one of the biggies and our Agent's Manual said we would cover skydivers IF they were USPA members in good standing. Skydivers are usually rated though, which generally means higher premiums than a smoker.

An important issue is called INCONTESTABILITY. The law says that when you buy life insurance, the insurance co. has three years (usually) to investigate you and find out if you lied to them about anything. Once the three years are up, they had their chance and they're stuck with you - so long as you keep up with your premiums. So if you have any life insurance from your pre-jumping days, hang on to it ! In my own case, with a wife & kids, I took out a rather sizable policy about 10 years ago, when I wasn't jumping. I TRUTHFULLY said no when they asked if I'd done anything hazardous (skydiving, etc) in the past three years and I ended up with a really good rate. My policy's been incontable for the last seven years. Now this year I started jumping again and so long as I keep up with my premiums - they're STUCK with me. They can't even rate me! Bwuhahaha !!

Don't be shy about life insurance, especially if you have a family. When I read about the young families of dead skydivers having to hold out their hats for charitable donations from our community, it makes me feel sick. If you can afford a rig, if you can afford to jump, you can afford to provide for your family, because shit can happen.

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An important issue is called INCONTESTABILITY. The law says that when you buy life insurance, the insurance co. has three years (usually) to investigate you and find out if you lied to them about anything. Once the three years are up, they had their chance and they're stuck with you - so long as you keep up with your premiums.>>>>

Is it three years or two years? I think it is two years.


Buzz

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Incontestability depends on the laws of the state the policy is sold in. Can also depend on the company, within the limits of state law, i.e. a company can say 2 years while the law says 3. Ask your agent or look at your policy.

Thanks. That makes sense. I will ask my agent in regards to the communist state of California.


Buzz

Thanks everyone.... thats very helpful!

It is two years but I think it may vary depending on the state. But as far as I can tell it is two years in California.

Source:

http://www.skydiverslifeinsurance.com

I can't comment on the original poster's question. I will say that I pay about $30 a month for a $100,000 life insurance policy that specifically allows skydiving. The main exclusion I recall was that I cannot be a professional skydiver. The company is Banner Life Insurance Company.

Gary, get an accidental death policy for $300,000 for about $30/ month, then get a term policy that excludes sky diving. Three times the coverage for the same money. When are you coming to Franklin so we can do CRW? Dave

Hi Dave,

I'm not familiar with an "accidental death" policy. What does that mean and how does it compare to a life insurance policy?

As far as CRW goes, I was borrowing T's rig the one summer I did it. I will be in Franklin more this year though. I got my coach rating because a good friend has started jumping. I've steered him to Franklin to earn his license.

I think this may vary by different states!

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Hi Dave,

I'm not familiar with an "accidental death" policy. What does that mean and how does it compare to a life insurance policy?

It only pays off on accidental deaths. Your heirs get zero if you kill yourself with a heart attack after eating too much fat and neglecting to exercise.

If they ask about you and you lie, then they likely can and will cancel the policy. If they do not ask you about it, and the policy does not specifically exclude that, then it is unlikely that they would not pay out.

Shop around, I got mine through prudential and it covers skydiving.

Accidental death policies pay if the cause of death is an accident (even if, for example, you die from an infection that was initially caused by an accident.) There are certain exclusions, but I never heard of one that excluded sky diving.

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Accidental death policies pay if the cause of death is an accident (even if, for example, you die from an infection that was initially caused by an accident.) There are certain exclusions, but I never heard of one that excluded sky diving.

I checked my policy I have through work and the Accidental death policy does exclude skydiving. I've got both Life and Accidental Death and the Life insurance doesn't exclude skydiving but the Accidental does.

At the bottom of the exclusions list is:

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parachuting, except when the insured has to make a parachute jump for self-preservation;

Now that I see this I need to shop around for a larger life insurance policy.