Scuba diving can be a fun and relaxing activity, but it comes with a risk, making life insurance a must for most divers. A recent annual diving report from DAN in 2017 recorded over 220 scuba diver fatalities, most due to diver inexperience. But, the chance of dying during a dive is rare. However, there’s still an inherent danger. For this reason, you find it challenging to buy life insurance due to the risk involved and may get higher premiums, depending on if you’re low- or high-risk.
Here’s everything you need to know about scuba diving and life insurance to increase your chances of getting the best life insurance rates.
Can I Qualify For Life Insurance If I Scuba Dive?
Although the inherent risk of the activity, scuba divers are still eligible for traditional whole or term life insurance. Some companies may even qualify individuals for a no medical exam or guaranteed-issue life insurance policy at a preferred rate. But before you get approved for coverage, most life insurance companies will want to know if you dive for occupational purposes – or just for fun.
Life insurance companies may also ask about how many dives you take every year. That’s why before being approved for life insurance coverage, expect to answer multiple questions about your diving endeavors. Doing this helps your underwriter understand what type of risk you might pose to them.
Types of Life Insurance Policies for Scuba Divers
The best life insurance for scuba divers depends on your situation. You will need to know how much life insurance you need and whether you’re purchasing coverage to manage your finances or ensure your family and dependents are financially covered if an accident does happen. Here are the three common life insurance policies:
Term Life Insurance
This type of insurance coverage is best for scuba divers who want to buy an affordable life insurance policy and leave love ones with a lump sum. When purchasing term insurance, you’ll need to select a life insurance coverage length between 10 to 30 years, specific benefits amount, and the name(s) of your beneficiaries. You don’t need to worry about your premiums changing for the whole term. But, once the period ends, so do the benefits.
Term coverage premiums are usually less expensive, making the process for approval more challenging. You’ll need to undergo a medical exam and answer several questions about your lifestyle to qualify. That’s why this life insurance policy is popular among low-risk individuals.
Whole Life Insurance
If you want to get an indefinite term and savings in your policy for your family, getting whole life insurance is ideal. It’s a permanent policy without an end date. The coverage for this is in effect as long as you pay for your premiums and it’s up-to-date, regardless of your age and other conditions that’ll develop. Also, you may increase the cash value amount with each premium payment.
This cash value amount builds up interest like a standard savings account. For this reason, the whole life policy is more expensive than term insurance. Although you still need to undergo an exam and an interview upon applying, its coverage is lifelong. It offers more flexibility for professional scuba divers who want to increase their participation long-term, perfect for the family.
Guaranteed Life Insurance
Young scuba divers should consider guaranteed life insurance. This policy is based on your age, gender, your preferred amount, and location. But it doesn’t require medical exams, and almost everyone who applies for this policy gets approved. However, this type of policy gets capped at a benefit of approximately $25,000. Plus, the rates are usually more expensive since the risk of the insurance company is higher.
But if you don’t want to share too much information with the life insurance agent and wish to have guaranteed benefits, guaranteed life insurance is perfect.
Scuba Diving Factors That Affect Life Insurance
Companies consider several factors when scuba divers for life insurance since the sport could be risky. Here are the most crucial factors that affect life insurance:
- Experience Level – Because most deaths and injuries during scuba diving happens due to diver error. So most companies want to know what type of certification you have to determine if you’re a certified diver. They may also ask how long you’ve been scuba diving.
- Dive Frequency – An insurance company may ask how often you dive to determine your coverage or premiums.
- The Level of Risk you Take – Most insurers will want to know what type of scuba diving you do and see if it pass depths of more than 100 feet. An underwriter may want to see if you do it as a hobby or occupation. Plus, they may want to know about the quality and age of the scuba diving equipment you use.
- Age and Health Condition – Older scuba divers or those with cardiovascular or respiratory issues must pay higher life insurance premiums.
Many insurance companies will also have complete supplemental questionnaires to see if you occasionally dive frequently. Here are common questions underwriters ask:
- How many dives did you do in the past two years?
- What’s your average depth and time when scuba diving?
- Do you plan to go diving the next year?
- Do you go over 100 feet underwater?
- When was your last scuba diving trip?
- Do you participate in any competitive, deep free, night, salvage, ice, or cave diving?
- Are you a professional or recreational diver?
A life insurance underwriter will use your answers to create a health risk profile, compare policies, and determine your coverage or premiums accordingly.
Some insurance companies may put some people into a high premium class. For instance, a scuba diver that dives 35 feet once every couple of years and doesn’t go beyond the deep depth of 75 feet might not have a surcharge. Meanwhile, fire or rescue team professionals, for example, might find it tricky to obtain traditional life insurance coverage.
Why Does Scuba Diving Matter to a Life Insurance Company?
Knowing if a person dives often is crucial to most life insurance companies since scuba diving can be dangerous. Even if the fatality rate for the sport is around one diving death per 200,000 dives per year, for an insurance company, it all comes down to the location, frequency, and type of dive. That means an insurance company may consider scuba diving high risk, but only in certain circumstances. For instance, recreational diving is safe, and companies usually offer the best life insurance rates for people who occasionally dive.
But though recreational diving is safe, things could still go wrong, especially if you take a more considerable risk like diving beyond 75 feet of open water diving, cave or ice diving, and wreck diving. That’s why life insurance premiums for scuba divers are more expensive than the average policy. So when buying life insurance, disclose the fact you’re a diver, even if you only do it occasionally.
Remember never to omit any information that could be considered risky from your life insurance application. That’s because insurers have a contestability period, meaning if the insurance company can find something that you didn’t disclose during the time of application, they’re legally allowed to return premiums in the event of your death in the first two years of the term.
How An Insurance Company Underwrites Scuba Divers
If you scuba dive often, a life insurance agent or underwriter may ask you multiple questions to compare policies and find the best rates for you. Most would ask you to disclose the following:
- What Scuba Diving Do You Do? There are two types of divers, including the professional and recreational driver. Those who do it recreationally will get more affordable rates than those who do diving for a living.
- Where Do You Dive? Scuba diving in the open water is considered safer than other dives, like an underwater wreck, cave, and ice diving. That’s why those who dive in open waters get better and more affordable rates than those who explore underwater.
- How Often Do You Dive Per Year? Insurance companies use this information to see if you dive for recreational or habitual purposes. Most insurers offer high premiums if you ten or more times every year. But the requirement for this varies per insurance company.
- Are You Scuba Certified? Most life insurance companies acknowledge three scuba certification variations. These include the National Association of Underwater Instructors, the Professional Association of Diving Instructors, and the Scuba Schools International.
- What Depth Do You Dive On Usually? Most insurance providers charge a ‘flat extra’ if you like diving depths beyond 100 feet. However, some companies have more flexible limits for these dives. So if you often go beyond an average depth, you’ll get a higher premium than normal.
- Do You Dive Alone or With a Group? An insurance company may charge you more if you dive solo since it’s riskier than going on dives with other people.
- Do You Go Diving for a Living? Although this won’t increase your rates, expect more follow-up questions to see how risky your work could be.
When answering an underwriter, be honest about all of these details during the life insurance application process. Doing so increases your chances of qualifying for life insurance for scuba divers. If an insurance company catches you lying, they may take the premiums you owe out of your death benefit or cancel the policy altogether.
What Do Life Insurance Underwriters Worry About?
When a scuba diver dives below 100 feet or dives more often every year, insurers usually reject them since they’re riskier individuals. Instead of the average open water diving, these people go to dangerous diving locations like shipwrecks, salvage sites, and under the ice. A life insurance company also worries about insuring people who go on deep dives for a living. These include professionals who do the following:
- Underwater welding
- Underwater demo
- Underwater archeology
Occupations like these will increase the amount a person needs to spend underwater, increasing the health risks. It’s in these cases where you’ll start having a difficult time applying for a policy than your average diver application.
You may also find some insurers that don’t insure a person who often dives or decide they want to charge an additional premium to your application, compensating for the perceived risks involved.
How Much Do Scuba Divers Pay for Life Insurance?
Only a technical or professional scuba diver should expect to pay more for life insurance, especially when they often go beyond the average depth divers explore. The additional costs will either be higher than an average premium or considered a ‘flat extra,’ a fixed fee added onto the premium. For instance, you might be charged a flat extra of $5 for every $1,500 in coverage you purchase. Factors like a certification or how often you go underwater can affect your health class. You can compare life insurance quotes from different companies to get the best rates possible and get the most out of your money.
How to Avoid the Flat Extra
If you think you’re going to be subjected to a flat extra due to your scuba diving activity, avoid the expensive fees by adding a hazardous exclusion rider to your coverage. However, this rider won’t be available in all insurance companies. That’s because the hazardous exclusion rider is typically added to travel insurance or travel medical plans, and only a few insurers offer it. You can work with an agent to find a provider offering this rider, but remember that it might not always be the best option. After all, the ride costs extra expenses, and the insurer may not provide the most competitive coverage for your policy. It’s best to compare different companies and quotes to find your preferred rates find the best plan for your situation.
The Bottom Line
Life insurance for scuba divers is relatively reasonable for individuals who like diving recreationally. But for riskier individuals, expect higher life insurance rates, no matter the coverage. To find the best policy for you, shop the market to find scuba-friendly life insurance and get the best coverage for an affordable price. You can compare life insurance quotes from different companies to give yourself a better idea.
