scubafire:
Is it difficult and/or more costly to get life insurance as a certified diver?
It depends.
Isn't that a crummy answer? But, it's true...
Some companies will charge extra for recreational divers, some do not. Some have come to understand that diving is no longer as risky as it was in the 1950's, others are still stuck with their underwriting standards in the last century.
I
always tell the insurance company. As others have posted, to not disclose is to invalidate the application. Lying on the application (about
anything, from diving to the color of your eyes) can, unfortunately, render the policy un-enforceable. It's like lying on a job application, if you get caught, even if you are doing a great job, you can still get fired. When you signed the application, you signed a statement to the effect of "everything I said is true" under penalty of disqualification.
Now, in most previous insurance applications, if the answer was "Yes, I dive" it required one more form. The forms said that I dive, and included that I was certified by a recognized agency. This form then becomes a part of the application, which becomes a part of the policy. As such, it becomes a
proof document and if (God forbid) the policy needs to be claimed,
they cannot disqualify you on the basis of diving because the diving disclosure documentation is
part of the policy.
The last time I applied for a policy, they asked, but the form was no longer required. Seemed that they decided that recreational diving was a fully acceptable activity, and not subject to additional documentation. That is particularly important since they also asked if I had received any motor vehicle violations within the last three years, and that
would have required additional forms! So, in the insurance company's world, I figure they see
recreational diving about the same as a speeding ticket.
A couple of asides:
Some one asked about "what if I got my life insurance before I got my certification?
As some one posted, as long as you were not a diver, and were not in training for certification, you answered
honestly and the application is valid. Remember, though, the wording is rarely "Do you dive (skydive, travel in the Middle East, etc.)," the question is usually more like "Do you now, or
do you ever plan to, engage in these activities."
I would add one
caveat, though. It is not really about what you did, and what were your intentions at the time. It is about
what either side can convince the administrative judge if it comes to litigation...
Some one also asked about what if they didn't tell the truth, and there was a claim?
It differs by the state regulations, but most states have a
two year contestability limit (some are less than two years). So, even if you were a certified diver
and lied about it, if you keep the policy in force for that period, after the two years (or less, as per the state regs.) it won't matter. If you got the policy in college, and are now a grandfather, it won't matter any more.
Lastly, what if you dove, but for whatever reason no longer do?
Still, tell the insurer that you
are certified, but no longer dive. They may just document it and move on. Worst case, they will document it as though you were a diver now. Either way, the application is still valid.
As far as higher premiums, the insurer can charge whatever the traffic will bear. There are certain institutional (other than economic pricing) incentives to rate you higher, and real business incentives to rate you cheaper (as in, competitive industry lowers prices). If they charge a higher premium for recreational diving, go some where else. PM me, and I can give you two companies that did not rate me higher based upon diving.
These days, there is no reason to pay higher for recreational diving. If you are a technical or decompression diver, expect to get static. If you are a commercial diver, that is another story. You will be rated based upon your occupation, be that commercial diver, race driver, or teacher.
:lightning
And, yes, I am knowledgeable about such things, having been a licensed broker in multiple states, and now teaching University courses at graduate and undergraduate levels in the subject.
