LIFE INSURANCE
for DIVING

Diving Life Insurance

The facts about getting Diving Life Insurance

Diving is one of the most popular extreme sports, with many people choosing to dive as a hobby or for an occupation. Over 900,000 certificates from the Professional Association of Diving Instructors have been issued every year since 1997. One of the major risks with any diving activity is the pressures that the body can suffer when diving to certain depths (as is the case when free diving), and the risks involved if equipment fails. It is therefore an advisable option for those regularly diving, especially as a profession, to consider Diving Life Insurance.

For any Diving Life Insurance, critical illness cover or income protection application, you will need to disclose all relevant information about your daily diving activities to enable underwriters to accurately assess the risk and give you the correct cover.

Types of diving that a Diving Life Insurance policy may cover include:

• Scuba Diving
• Deep Sea Diving
• Wreck Diving
• Free Diving
• Potholing
• Cave Diving
• Mixed Gas Diving
• Offshore Oil / Gas Diving

Here at iam|INSURED, our team of helpful advisors can assist you in finding the best insurers’ rates for your Diving Life Insurance based on the activities you are regularly undertaking.

What does Diving Life Insurance cost?

If you require Diving Life Insurance, critical illness cover or income protection, then you will need to provide your insurer with some details about the severity of your condition. Insurance underwriters will assess your application for Diving Life Insurance based on the following:

• The type of diving being undertaken
• Number of dives carried out per year
• Diving equipment used
• Your diving qualifications and recognised certificates
• General experience level

Diving Life Insurance rates/ratings

iam|INSURED deal with people such as yourself who need Diving Life Insurance. We understand how the insurers will handle your application, we know what information they will require and we go out to obtain all medical and professional reports etc that may be required to ensure your application can be considered and cover arranged. Life insurance will vary from one insurance provider to another, depending on their underwriting philosophy. Life Insurance for scuba diving and divers can be accepted at normal rates with no loading or exclusions. This will however depend on the kind of diving activity undertaken. People who take part in any form of diving looking for life insurance, critical illness cover or income protection will need to disclose information about their diving activities to the underwriters.

Percentage (%) loading for Diving Life Insurance

A percentage loading basically applies a % to your standard premium based on the levels of risk calculated for your own circumstances. Your percentage loading will apply a multiple to your Diving Life Insurance premium, which will be based on the activities undertaken and their level of risk at the time of your application. You should also know that some insurance providers have different maximum levels to others, so some are prepared to take on higher risks (e.g. 250% or 400%).

EXAMPLE:

Per mille loadings for Diving Life Insurance

You may also find that a ‘per mille loading’ could be applied to your Diving Life Insurance premiums depending on the activities you are involved in and how often you do them, but this is more rare and only tends to be used for more extreme levels of diving. A ‘per mille loading’ will be an additional amount that is applied to your premiums which is based on the amount of cover you are applying for (e.g. £2 per thousand £’s of cover). The other difference with a ‘per mille loading’ is that it can be applied for the whole term of your Diving Life Insurance policy, or for a period of time from the start of your policy (e.g. 2, 3, 4 or 5 years).

Exclusions for Diving Life Insurance, critical illness cover or income protection

Another potential outcome when applying for a non-standard cover such as Diving Life Insurance, critical illness cover or income protection is for an ‘exclusion’ to be applied to your policy. This means that you may have certain conditions which can be linked to your current health (e.g. high blood pressure, diabetes etc.), excluded from your policy.

How much cover do I need?

There are however some simple rules that you can follow which will give you a good idea for how much cover you need before you apply. As long as the activity is not too dangerous with a low level of risk, Diving Life Insurance can be obtained at standard rates. You should however consider the number of dives you do each year, whether you dive to depths of more than 40 metres, and whether you dive in particularly hazardous or dangerous settings such as caving, wreck diving or potholing.

Rates will vary depending on the insurance provider we apply to for you.

Diving Life Insurance amounts of cover

• Mortgage amount (£’s)
• Outstanding debt (e.g. Loans, second charge, credit cards and other)
• Dependants
• Spouse or partner
• Income (after tax)
• Assets (e.g. car, house, business etc.)

Diving Life Insurance critical illness cover amounts

Critical illness cover is slightly different to life insurance in the sense that it is designed to provide a lump sum payment if you are diagnosed with a critical or serious illness. Most people relate this type of cover to illnesses like Cancer, which is the biggest reason for claims for critical illness cover. Things to consider are:

• Income (after tax)
• Mortgage payments (annual)
• Cost of living (annual)
• Any other possible costs (e.g. medical treatment or adaptations)

Critical illness cover for scuba diving and diving is generally available at standard rates with no exclusions, as is the case with most extreme sports. As with any dangerous hobby, if your diving activity is more dangerous then you may find that either restrictions for diving and critical illness cover are applied, or a premium loading. At iam|INSURED we can apply to the best life insurance provider for you to get you the best terms and rates for diving critical illness cover.

Diving income protection amounts of cover

Income protection is a very flexible product with a lot of options and variables, so you need to consider your own circumstances before you consider this type of policy. If you work, and especially if you are self-employed as a diver, a diving income protection policy can be a valuable product to give you peace of mind if anything happens to you. Some of the main aspects to consider are:

• Monthly income (after tax)
• Mortgage/rent payments
• Debts (other)
• Cost of living

Income protection for divers is available, but there is a strict underwriting criteria, and there could be some restrictions imposed. Recreational divers should find cover at normal rates with no exclusions. Professional divers or those diving to depths of over 40 metres or more may find that some exclusions are applied to the income protection policy.