Life Insurance for a SCUBA Diver

[Drew Sailbum]

5615mike once bubbled...
Everyone listen up............you lie about anything on a life app and your beneficiary will get nothing.....period.

Varies state to state, but usually a "lie" is not the issue. The issue is whether any false statement rises to the level of a material misrepresentation.

On John Q. Public's Life insurance application
Q. Have you had any surgery in the last five years?
A. No.

Turns out that John Q. Public actually had a torn ACL and had knee surgery to correct that 4 years and 10 months ago. His answer was not true. It may have even intentiaonally been a lie. It may be that John thought that his surgery was more than 5 years ago and he honestly believed he was telling the truth.

Unless the insurer can legitimately argue that the information would have resulted in the policy not being written or in the policy being rated, this lie is irrelevant and the policy would have to pay. The state insurance commisson can help decide if any misrepresentations rise to the level of a "material misrepresentation."

That said, do not lie on any insurance application. But do not worry that your faulty memory will automatically result in your family being denied the proceeds of your life insurance.

There is a way to cover yourself to an extent. Answer questions such as above with "Not to my recollection. Please verify with Dr. Jones for dates of past surgery."

 

[5615mike]

Drew Sailbum once bubbled...


Varies state to state, but usually a "lie" is not the issue. The issue is whether any false statement rises to the level of a material misrepresentation.
There is a way to cover yourself to an extent. Answer questions such as above with "Not to my recollection. Please verify with Dr. Jones for dates of past surgery."

Drew

You are correct. I made the mistake of omitting "material misrepresentation" Your on the ball.

 

[samcvic]

Thanks for all the info guys. Everyone has been very informative.

With all that being said, who do you'll use?

Do you like them ?

Wish you would have done something different?

 

[WJL]

Drew Sailbum once bubbled...


Varies state to state, but usually a "lie" is not the issue. The issue is whether any false statement rises to the level of a material misrepresentation.

On John Q. Public's Life insurance application
Q. Have you had any surgery in the last five years?
A. No.

Turns out that John Q. Public actually had a torn ACL and had knee surgery to correct that 4 years and 10 months ago. His answer was not true. It may have even intentiaonally been a lie. It may be that John thought that his surgery was more than 5 years ago and he honestly believed he was telling the truth.

Unless the insurer can legitimately argue that the information would have resulted in the policy not being written or in the policy being rated, this lie is irrelevant and the policy would have to pay. The state insurance commisson can help decide if any misrepresentations rise to the level of a "material misrepresentation."

That said, do not lie on any insurance application. But do not worry that your faulty memory will automatically result in your family being denied the proceeds of your life insurance.

There is a way to cover yourself to an extent. Answer questions such as above with "Not to my recollection. Please verify with Dr. Jones for dates of past surgery."

Drew,

Your advice is not correct in every state. Each state has a different body of law regarding misrepresentations on insurance applications. In some states, ANY misrepresentation on a life insurance application, even an "innocent" or "immaterial" misrepresentation, is sufficient grounds for the insurer to refuse to pay the death benefit.

The insurer will refund the premiums paid. That will make your beneficiaries feel better.

 

[kelpdiver]

I went through this about 6 or 7 years ago, looking for a 10 or 15 year (went with 10) level rate term policy (at which point my kids should be self supporting, and my retirement funds should take care of spouse). I used one of the earlier internet brokers to at least get some basic info on policies-- I suspect there's an overabundance of info out there now.
You can argue about the real risks (v. bowling, or riding a motorcycle, etc., etc.), or why some have cut-offs at diving 60 ft, or 100 ft., but you can't lie, or change the policy. I eventually found a company, now bought out by Zurich, which allowed diving to 100ft, and charged more than for their standard low-risk policy, possibly by about 20%--I really can't recall--just one of the costs of the diving habit. I may have hit 100 ft. once or twice in Coz since then, but if I don't die while diving to that depth, I doubt anyone will check my computers to make sure I didn't mislead, but who knows.
When this expires, I'll either renew (if possible) for a much lower benefit, or have to research the whole diving question again.

 

[runvus4]

Insurance companies make money by taking in insurance premiums and paying out as little as possible. That means that if they can get an excuse to deny or reduce benefit payments they will take it. Sometimes the denial of payment or reduction of payment is not justified and can be successfully contested.

It's not worth the potential hassle to your next of kin to lie on a life insurance form and potentially force them have to hire a big nasty shark of a lawyer to browbeat the insurance company for the largest payout, especially as the lawyer will then take a cut and reduce the amount received by next of kin anyway.

Talk to your insurance agent, they want to sell the policy as much as you want to buy one. They should be able to steer you to a policy that you can afford and will allow you to truthfully dive.

 

[Windminstrel]

I bought my life insurance policy years before I started diving, so I answered the scuba (and tobacco, for that matter) questions accurately. Since then I've taken up scuba and snuff.

Anyone know what the results would be if I were to cork off diving? Or have a heart attack? How 'bout a car accident?

 

[H2Andy]

check the policy about what duties you have to report changes in your info. if you
have an on-going duty to report changes and you don't, count on your insurance
company declaring the policy null and void if they at all can.

 

[DivePartner1]

My primary policy, part of my benefits package at work, does not exlude scuba injuries. My supplemental life policy does. That's fine, I knew that when I applied, and other insurance and my will should provide enough comfort.

Does anyone know of a product available to consumers taht offers life insurance for accidental scuba deaths?

 

[H2Andy]

yes, DAN offers such a policy, and I've heard of at least one other.

here's DAN's link: http://www.diversalertnetwork.org/insurance/life/index.asp