Looking for a quote for life insurance or burial insurance? Click here and send me a message with details of what you’re wanting to accomplish. If you’d prefer to talk live, call 888-626-0439 to speak with me directly.
In This Article, I’m Going To Give You Strategies To Qualify For The Best Possible Life Insurance Coverage As A Scuba Diver
If you enjoy scuba diving, or have a friend or loved one who scuba dives, you may be concerned about how to get the best pricing for life insurance coverage. Perhaps you’ve even been declined for life insurance because of your hobby or profession, or you have encountered a very high price increase that just doesn’t make sense for your budget.
Whatever your situation, I’m glad you’re here because the goal of this article is to explain what your actual options are for life insurance coverage as a scuba diver.
There are several factors that come into play with different life insurance companies based upon what your overall perspective looks like. Not one company looks at all of these conditions the same, which is why we recommend working with a broker that will shop around for your coverage to try to find you the best overall package.
That’s what we do here at buy life insurance or burial. We try to find the best overall packages. These tailored packages will give you a really good deal and fully comprehensive coverage.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation on qualifying for life insurance as a Scuba Diver. Enjoy!
Let’s dive in!
Here’s An Overview Of Today’s Topic:
- Factors You May Consider When Applying For Life Insurance
- Other Strategies And Things To Consider
- What Type Of Life Insurance Coverage Is Available For Scuba Diving?
Factors you may consider when applying for life insurance
Frequency of dives
One question you will likely encounter while looking for life insurance is how frequently do you dive? Do you dive only while on vacation? Or do you dive on a weekly basis? The frequency level will have large implications regarding which life insurance carrier we should look at.
For example, some carriers have an annual cut off rate – a maximum number of scuba dives that you cannot exceed. If you go over the max level and pass away after the policy was taken out, you risk the policy not paying out.
On the other hand there are life insurance companies that have no max number of dives. So its important to let your agent know the frequency of your dives so that they can pick a company that’s going to be more flexible about giving you life insurance coverage that best matches your hobby.
Scuba diving alone versus with a group
A life insurance company is going to differentiate the level of risk associated with an applicant based not only on how often they scuba dive, but also whether they do it by themselves or with a group.
Generally, if you scuba dive alone, it’s likely that you’ll be declined. Whereas if you do scuba diving in a group, the ability to get approved for coverage is much easier.
Whether or not you have a certification as a diver has a huge impact on whether or not you’ll actually be accepted for coverage. For example, if you do not have dive certification from some of the more common groups, it’s unlikely that you’ll even be eligible for coverage. Life insurance companies simply don’t feel comfortable giving you coverage when you don’t have the credentials to prove that you know what you’re doing.
However, if you are certified by one of these groups mentioned above, it’s likely that you won’t have any difficulty whatsoever with your application. And if you have more advanced certifications, you may find that life insurance companies may feel a bit more comfortable accepting your application.
Overhead or non recreational norm diving
As you probably are aware, there are different types of diving such as:
- Open water diving (where you simply just dive into the ocean)
- Cave diving
- Shipwreck diving
- Search and rescue diving
These are what would be called overhead or non recreational norm diving, which means if you do these kinds of dives it is going to be more difficult to get coverage approved at regular rates.
Be prepared to be fully transparent about your dives
It’s important to be completely honest about what kind of diving you do and how often. These types of questions get at one of the more important factors for an insurance company – your diving experience. Questions may include:
- How many times have you gone scuba diving in your life?
- How many times have you gone scuba diving in the past several years?
- Do you have certification?
All of these questions are essentially analyzing your experience level. As long as you can prove that you have established experience, especially through a certification process, companies will be much more lenient about giving you coverage.
What’s your average dive depth or maximum dive depth?
Generally speaking, life insurance companies are concerned with how deep you go on your dives because the deeper you go, the more risk you face. Generally, acceptable dive depths are from 30 to 40 feet, with the dives going no deeper than 50 feet to be eligible for standard or better rates.
As you get into lower depths such as 75 to 100 feet, you’re going to find that companies start to become restrictive. At greater depths, coverage rates are likely to go up or have a flat rate tagged on. However, there are some companies that are flexible with deeper dives.
Tell the truth
“Why are there so many questions about my health?” you may wonder. “Don’t they just need to know that I scuba dive?” That’s a fair question to ask. It’s important to understand that the application process analyzes all aspects that may affect your well being as a diver. And when it comes to life insurance, you should under no circumstances lie or purposely withhold information on your life insurance application.
The problem is that your application is based on the information you provide. This means it is to your benefit to be honest and forthcoming. If you withhold the truth and you die while diving, these life insurance companies may hold up or withhold all together your life insurance payment. This is why you want to be entirely and completely forthright and hold nothing back while applying for coverage.
Other strategies and things to consider
One strategy to try to get a better price on your life insurance coverage is to request in your application what’s known as an exclusionary writer. The idea behind an exclusionary writer is that if you happen to die from an activity that is considered high risk and would cause a higher premium, then you’re granting the company the right not to pay the life insurance premium upon your passing.
This is a strategy to give you more life insurance coverage at a better price and not pay the higher potential flat extra fee that may be associated with your scuba diving activities. But it’s important to understand that exclusionary riders are exclusionary and you’re stuck with what you have. So think twice before going this route.
Take out two policies
Another strategy you may also want to look into is taking out two policies, one in which you grant yourself partial coverage, whether you die from a natural death coverage or scuba diving coverage, and another that excludes the scuba diving coverage and gives you full coverage.
If you take out two policies you can max out the kind of coverage that you want, but then only partially cover yourself if you end up dying from the recreational activity that has caused the higher rate.
How a flat extra works
I mentioned earlier the flat extra. Essentially the concept behind flat extras allows insurance companies to better manage the risk associated with hobbies or professions considered more dangerous, but also get you coverage that you definitely need.
Here’s how it works:
Let’s say you get approved for $100,000 of coverage. That costs $1,000 a year, but it’s approved with what’s known as a flat extra, which means for every $5,000 in coverage, you pay an additional $500.
For $100,000 in coverage, you would pay an additional $500 a year on top of your premium. So $1,000 plus 500 means you would pay $1,500 a year to have your coverage in the books.
So this would give you full coverage, no exclusions, and maybe a potential way to have coverage on the books, but for a slightly higher fee to accommodate both your scuba diving as well as your normal everyday activities.
Should I get an exam?
My recommendation for my clients is is that as long as you are in good shape and as long as you’re buying above a specific amount of coverage, depends on the company that age, it’s wise to do an exam. It will give you the opportunity to get the most coverage for the least amount.
If you’re generally not in great health, it may not be a good idea because it create problems with your application as well as higher rates. If you are unsure whether or not you should get an exam, talk with your agent. They can give you a good idea of what the best route might be for your particular circumstances. It just depends on your unique health profile and what your circumstances are.
What type of life insurance coverage is available for scuba diving?
There are primarily two different types of life insurance coverage available to those who scuba dive or participate in other types of diving. I’m briefly going to describe both, so you have a basic understanding, and to give you a better idea of what you’re looking for.
Term Life Insurance
The first kind of life insurance available is what’s called term life insurance. Term life insurance is temporary life insurance that offers coverage for a set amount of time. It’s usually the least expensive form of life insurance available. It’s purely insurance that only covers your death if you die within the term period. The term is typically between 10, 20 or 30 years.
The premium remains the same and if you outlive the coverage, the coverage usually cancels or gets so high that it’s unreasonable to keep.
Term Life Insurance Coverage – 10 Year Term – $100,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $250,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $500,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $1,000,000 in Coverage
Why do people buy Term Insurance?
Simply put, because they want to control their temporary obligations and pay them off if they happen to die earlier than expected. Commonly people buy term insurance to protect against income loss if they pass away or to pay down obligations like business loans and mortgages, approximately 80 percent or greater. Most people buy life insurance by the term plan, so it’s likely that this will be the plan that you’ll purchase.
Permanent protection is geared more for estate planning and final expense payments as well as retirement pension planning. If someone has a pension plan that’s nontransferable to a surviving spouse, permanent coverage is not as popular because it costs five to ten times as much for the same amount of coverage purchased with a return plan.
Unless you’re looking at one of those circumstances described earlier, it’s unlikely that a scuba diver would want to get a permanent life insurance plan. However, we are here to help you with whichever plan you decide to apply for.
Burial Insurance Rates, Age 40 to 90*
Rates For $5,000 In Burial Insurance
Rates For $10,000 In Burial Insurance
Rates For $15,000 In Burial Insurance
Rates For $20,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
*Burial insurance premiums are subject to underwriting, based on rates as of 8/20/2018, from state-regulated life insurance companies offering final expense burial whole life insurance protection. Understand that in order to potentially qualify, you must submit an application to see if you’re eligible. Rates are subject to change. Give Buy Life Insurance For Burial a call at 888-626-0439 now to see what program you may qualify for.