Up there with health conditions and occupation is another risk category life insurance companies are concerned that most consumers never think about: high risk hobbies .
These include all leisure activities that have a statistically higher probability of death than more common activities.
For example, no one would doubt that skydiving and motorcycle racing are more likely to kill than writing science fiction or making YouTube videos as a hobby. This point is not lost on life insurance companies. Generally, you pay an extra premium if you regularly engage in hobbies that are classified as high risk by the industry.
A prominent example of a high-risk hobby is diving. Although it is possible to get life insurance for divers, you should expect to pay a higher contribution, then you would do if you do not engage in the hobby.
How much you will pay depends on the extent of your scuba diving activities.
How dangerous is diving?
We could not disclose any statistics to show how dangerous diving is (or is not), but ScubaDiving.com lists four primary risk factors: [1
Obesity, heart disease, high blood pressure, temporary or chronic breathing difficulties, existing injuries, dehydration and even a general lack of fitness can jeopardize the diver's safety.
Unfortunately, there are few health-related restrictions that would prevent a person from participating in diving.
2nd Procedural Errors
These include problems with control of buoyancy, rapid ascents, missed decompression stops, general skill limitations, ear leveling problems and not controlling your air supply properly.
Any of these can happen if you do not have adequate training or supervision. . These issues also become more pronounced with specialized diving, such as exploring caves, shipwrecks or engaging in particularly deep dives.
3rd Environmental issues
As calm as the big deep blue appears on TV, there is actually a lot of activity taking place. This can include currents, waves, depth and visibility. Water temperature can also be a factor, as there are significant differences between diving in cold water versus hot water.
Failure to assess – and manage – any of these environmental issues may increase the risk of injury or death.
4th Equipment Problems
Although these can usually be avoided through advanced preparation, they are sometimes detected. Fortunately, however, equipment problems are less likely to cause death than any of the above problems.
What is worth noting is that it is not diving in itself that is the immediate cause of death but rather personal or external circumstances. But the fact remains that a person is more susceptible to health problems, human mistakes, environmental effects and equipment problems precisely because they work in an unnatural environment.
Does Life Insurance Cover Diving?
The short answer is yes . Unless you regularly engage in the most risky of dives, such as deep-sea diving, your application is likely to be approved.
However, the question will be the premium you pay. Although not all forms of diving will result in higher premiums, anything other than a temporary diving level will occur.
Your life insurance will be priced based on the usual factors: your age, health, gender, occupation and various other factors. A standard premium is then added to the base premium to adjust for your diving activities.
When you apply for life insurance, you must reveal that you are participating in diving. You can get a life insurance policy with a premium based on your total insurability alone, but deaths due to diving are likely to be ruled out as a covered event.
Whatever you do, do not lie on the application and do not state your diving activities.
Life insurance competition period
Each life insurance has what is called a competition period. This generally applies to the first two years that the policy is in force. Life insurance companies can investigate and question the payment of the death benefit if there is any suspicion that your death was the result of a disclosed condition, behavior or hobby. In that case, the insurance company will refund your accumulated premium payments to your beneficiaries, but will not pay the stated death benefit.
Even if you are longer than the two-year competition period, the insurance company may not pay the claim if they discover evidence that you were an active diver when you submitted your application. Since the non-disclosure constitutes insurance fraud, they have legal grounds to withhold payment of the death benefit.
The best option is superior to reveal your diving hobby in the application and pay the higher contribution. If you do, the death benefit will be paid, even if the cause of death is the result of diving.
You can pay an extra premium for scuba life insurance
The insurance company will calculate your life insurance premium based on all the usual factors. But so that your diving hobby is also covered, you will pay an extra fee with your premium. It will be calculated as coverage of X dollars per thousand dollars.
The surcharge can range from $ 2.50 – $ 5.00 per $ 1,000 coverage.
For example, if you take a $ 200,000 life insurance policy with an annual base of $ 500 premium, and the dive adjustments are set at $ 3.00 per thousand, you pay an additional $ 600 – for a total of $ 1,100 – for your policy on an annual basis.
Now, exactly how much the extra premium will depend on the type of diving you do, as well as the frequency.
Factors Affecting Scuba Diving Premium Addition
Factors in the calculation of the additional premium include:
- Diving frequency. The more often you dive, the higher the adjustment will be. If you dive less than 10 times a year, the premium adjustment will be smaller.
- Experience and certifications. Certifications can be especially important. If you get one or more from recognized diving schools or associations, you will probably get a lower premium adjustment. More experience will have stronger consideration than a newer participant.
- Where you dyk. If you usually dive in shallow water bays, the adjustment will be significantly less than if you are a more serious diver exploring caves and shipwrecks.
- diving depth. This may be the single, most important, decisive factor. If you do not normally dive more than 100 feet, you may qualify for standard prizes. But to the extent that you exceed 100 feet, the premium adjustment will increase.
- Group or solo diving. You will probably get better prices if you normally dive in a group. There is safety in numbers, especially when working in an unnatural environment, such as underwater.
The insurance application will not give you an option to include all the details above. However, they will ask you about certain high-risk hobbies, and if you correctly disclose your diving hobby, an insurance representative will contact you for more details.
Be as honest as possible once again. If you reveal to the representative that you are not diving below 100 feet, you die in a diving accident at 200 feet, the insurance company can not pay the claim.
How to apply for life insurance for diving  Although diving – and many other high-risk hobbies – do not seem to be in the same category as personal health conditions when it comes to life insurance, they create a special situation. And it requires special handling.
If you are an active diver and you need life insurance, the worst strategy you can use is to simply apply with a company that advertises the lowest life insurance premiums available. Consumers often make the mistake of assuming that a company with the lowest base rates for the best customers will have similarly low prices even for applicants with special circumstances.
But that's almost never true. Companies that offer the lowest premiums can do so because they often specialize exclusively in coverage for applicants with the lowest risk. Many do not even provide coverage if you pursue a risky hobby, which means that your application will be rejected.
Whether it is a significant health condition, a dangerous profession or a high risk hobby, you should work with a life insurance broker when applying for coverage.
Shopping for life insurance for divers
Every situation that is linked to your application that makes you a little different requires special handling.
An insurance broker will be able to provide that service – at no extra cost to you – because they work with dozens of life insurance companies. They will know which companies are likely to approve an applicant with a health condition, dangerous profession, high-risk hobby and many other factors.
If you are engaged in high-risk hobbies, such as diving, and you need life insurance, complete the box Get a free life insurance policy to the right of this article, and let us help you get the best coverage at the lowest possible premium.
* While we make every effort to keep our site up to date, please be aware that "current" information on this site, such as quotes or relevant company information, may only be accurate from the last day of editing. Huntley Wealth & Insurance Services and its representatives do not provide legal or tax advice. Please contact your own legal or tax advisor.