Parachute life insurance – is it really as bad as it seems?
Anyone who takes part in skydiving or parachuting might consider that life insurance is one of those things that they will never be able to get simply because of the amount of risks involved and the general view people have about insurance underwriting. The common misconception amongst people who take part in extreme or hazardous sports is that the risks are too high so cover such as Parachute life insurance is either too expensive or may not even be available.
The fact of the matter is that a Parachute life insurance policy is possible to get for most and the reality is that mortality rates for parachuting and skydiving is actually quite good. There are certain risk elements to Parachute life insurance which would be considered to be non-standard which are:
- Base jumping
- Competitive sky diving
- High numbers of jumps per year (more than 50)
If you want a policy that covers you for Parachute or Skydiving life insurance then you will need to provide insurance underwriters with information about the type of skydives you do and how often you take part in skydiving. Most insurers are fairly happy to accept an application for Parachute life insurance where the number of jumps is relatively low (e.g. below 30) or as long as you have relevant experience/qualifications.
How much does Parachute life insurance cost?
It is very possible that you may be able to get a Parachute life insurance policy at the same rates as someone who does not take part in extreme sports or who is classed as a standard risk. The common term for life insurance premiums with no increase is ‘standard rates’ which basically means that you are paying the lowest premium for cover based on:
- Age
- Health
- Occupation
- Sport
If you are looking for a quote for Parachute life insurance then you will need to consider how much cover you need and what you want to protect (e.g. mortgage, income, loans/credit, children etc.). People who skydive are just as likely as anyone else to need life insurance as they are generally parents or professionals so will have the same insurance requirements as most.
What happens if I am considered higher risk for Parachute life insurance?
It is possible that you might be considered to be a higher risk person for Parachute life insurance because of the type skydiving that you do or the number of jumps you do each year. If you are considered to be a higher risk for Parachute life insurance then you may find that a ‘loading’ or ‘rating’ is applied to your premium to reflect the higher risk.
The beauty of life insurance is that you are either acceptable or not acceptable to underwriters which means that you will be able to get a policy for Parachute life insurance in most cases. If you are declined life insurance then it is unlikely to be because of your parachute jumping so it may be because of some other factor such as your health or your occupation.
Another major factor to consider for Parachute life insurance is whether you are a smoker or not as premiums can be nearly double what they are for non-smokers.
Can I get Parachute critical illness cover or income protection?
The fact is that underwriting can be slightly more strict for critical illness cover and income protection because the risk of a claim is a lot higher than life insurance. It is also usually very possible to get parachute critical illness cover and income protection which can also be offered at the same rates as a person with no additional risk factors.
The main thing to take into consideration for parachute critical illness cover is the fact that you may have an exclusion applied for total and permanent disability. This should not be a major factor as this is only a small part of this type of cover so you should look at everything that is included.
Sports Financial is a top insurance expert for someone who is classed as non-standard because of their sport or occupation such as Parachute life insurance. Our team of highly skilled experts has helped thousands of people with extreme sports to protect their families and children.