Joel Silverstine from TDL posted this over on The Deco Stop a while back. He used to be a high end agent and knows the buisness.
Life insurance companies are in the dark when it comes to understanding the risks of diving. They use statistics that are old and jaded. However, you need to appreciate where they come from as well. When you ask a company to put up a million bucks for a few pennies exchange they have the right to know what the risk is.
There are a few ways to go about this. 1. Work with a VERY good agent. I'm not talking about your third cousin on your wife's brothers side who just got into the business. Find a real pro who is your contemporary and is producing a LOT of business with an insurance carrier. They understand underwriting. They can help you.
Next. When you apply (and that is what it is, an application) make sure you qualify for the coverage on all bases BEFORE looking at the ADDITIONAL PREMIUM (non-standard rating) that WILL be charged for the diving. If you meet it all on medical, financial etc then the rating can be negotiated. Expect that the rating will be almost $2-10 bucks per thousand dollars of coverage. So while a standard life policy may be for $250k of coverage around $2500 a year the diving rider may be another $2500 a year. You need to expect that.
Next -- when you fill out the AVOCATION page on the application only respond to the questions based upon what you have done in the PAST not what you think you may do in the future. This is important. Do not give them a whole long disertation. They do NOT understand mixed gas diving, so stay clear of it. Unless you are a commercial diver, you dont list "professional". etc.
Next. Make sure your agent has handled special cases before. If he has he can make some very good progress.
The underwriting process can and will take upto 90 days before you get a decision. Then they will come back with an "offer" where you will see what the rating will be. Table 1-10. The primary company unless they are a BIG one will most likely have sold off the "risk" to another company. Most carriers will hold risk up to Table 4, after that they sell it off under reinsurance. (you dont see that part but that is what is done). Once you have the offer have the agent "challenge" the offer, go back and negotiate it down. Rember that a policy rating is pure extra cost for the risk, if the policy is cash value base this extra premium does NOT build cash value, its just rent.
Depending on your financial situation you may or may not want to pay the additional premium. That's up to you. But, it is negotiable for at least a table or two depending on how good the underwriter is.
Choose a quality company. A to A++ is best to work with. Stay clear of small companies, they are useless. Also -- you always have a better chance of negotiating the rating down when its attached to a cash value policy than when it is on a term policy. 90% of all term policies "terminate" before a claim is made on it. So the carrier really has little risk on it which is why the stuff is so cheap. But when you put a real risk on it the premium skyrockets in proportion to that term premium. So work wisely with your agent.
NEVER lie on your life insurance application if you want that coverage to be in-force during the first 2 years you have it. You drop dead, they have the right to refuse payment during those first two years if you lied. After that you are free and clear.
One more thing. should you stop diving for 12 months or more you can go back in to your company and have them re-evaluate the premium rating and in many cases have the rating removed. Should you go back to diving later, the policy is still in force and no new rating will be put on it.
When my wife took off diving for a few years to have kids we had her $1800 a year premium rating removed. ....... cha-ching......
Hope this helps you.
Regards.
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Joel Silverstein, VP, COO
Tech Diving Limited - Everything Tech
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