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Life Insurance Restrictions For Space Tourists

Posted by Soulskill on from the lifestyles-of-the-rich-and-uninsured dept.

RockDoctor writes: Reuters reports that there are changes afoot for life insurance contracts, which will require additional premiums for "space tourists." While not likely to be a disabling issue for the industry — the statistics for astronauts dying in flight are not that bad — it is an issue that people considering such a jaunt will need to address. Obviously this has been brought to the fore by the unfortunate crash of the Virgin Galactic craft under test. Relatedly, an article at IEEE Spectrum explains why SpaceShipTwo's rocket fuel wasn't the cause of the accident.

1 of 68 comments (clear)

  1. Life insurance vs life expectancy by sjbe · · Score: 3, Informative

    In other words, he or she almost certainly doesn't need life insurance to make sure the spouse and rugrats can afford the lifestyle to which they've become accustomed when the breadwinner gets splattered all over the desert.

    "Need"? Strictly speaking you are correct. But people who are rich generally actually do have life insurance policies as a part of their estate plan. Violating the terms of these policies could cause them some fiscal heartburn. These policies have a price and payout terms that are based on certain expectations of the policy holder's lifespan. Things that could radically alter this expectation may void the terms of the policy or necessitate a material change in underwriting charges. Spaceflight is one of those things that falls into the category of radically adjusting risk.

    If you apply for a life insurance policy of any real value, they will ask you to take a physical and you will be asked questions like whether you have a pilot's license or have flown in a non-commercial aircraft in the last 5 years. The insurance company will adjust their price accordingly if they are willing to underwrite the policy at all. Lie about it and the policy can be null and void to the detriment of you or your family.