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Getting life insurance for skydivers can be an expensive endeavor. Most skydivers that I have talked to look at the rates they have to pay and almost do a flip right in front of me. The truth is there are simple methods to getting the cost of skydiver life insurance down to something much more reasonable.
Because skydiving is a higher risk activity it gets, what is called in the insurance industry, a “flat extra.” This means that for every $1,000 of life insurance you get an additional dollar amount is added to the insurance premium. For moderate skydivers (less than 50 jumps per year), skydiver life insurance will add an additional $2.50 per $1,000 of coverage. This may not seem like a lot on its face but when you look at a real life insurance for skydivers policy you will realize this gets painful fast. For example, a forty year old male looking to get 20 year term life insurance for $500,000 of coverage would pay about $700 per year. If you are skydiving then you would add an additional $1,250 for a grand total of $1,950 per year. If you work with a creative agent then you will still pay more than the standard rate but you can greatly reduce your cost.
The first idea that comes to mind when purchasing life insurance for skydivers is to get two separate life insurance policies. One that includes skydiving and one that does not. So if you wanted $500,000 of coverage you would get two $250,000 policies. If you were to die while skydiving then your family would get only half but any other death would pay out the full $500,000. By doing this you could cut your rate by as much as 25%.
Another option would be to get a $500,000 term life insurance that excludes skydiving and then a separate accident policy that covers skydiving. This method is even more cost effective and can save you as much as 33% off the example above. The one thing to be wary of when using this method to get life insurance for skydivers is the make sure that the accident policy covers the activity. Most policies will not cover skydiving so you have to be working with a reputable agent who will point you in the right direction.
If you are a skydiver we recommend working with a reputable and experienced agent. We at TermLife360.com would love to be that agent for you and are available to answer any questions you may have. If you are ready to get started please fill out the form on the side of this page and our team will be happy to help.