Can a high risk job impact my life insurance rate?
Updated: Sep 20
Is your job one of the top 10 safest or most dangerous? Not surprisingly, what you do affects the cost of your life insurance. Basically, the dangers of your job can mean that your life is more at risk. Someone like a police officer, for example, has a greater risk of workplace injury than someone like a teacher. So, what factors make a job safe or dangerous? How does this influence your life insurance rates? Read on to see if your job makes it on one of the lists.
According to Time, “transportation accidents were the leading cause of job fatalities, resulting in 40% of all workplace deaths in 2016”. Interestingly, the second-highest cause is workplace violence, which has increased by 20% in 2016. In hearing this term, many people assume it refers to violence between co-workers, but it is actually about robberies and assaults by customers. This affects professions such as police officers most often. Next, after the violence, the third cause is “falls, trips, and slips”.
Aircraft pilots and flight engineers
Trash and recycling collectors
Iron and steelworkers
Truck and sales drivers
Farmers, ranchers, and agricultural managers
First-line supervisors of construction trade
Grounds maintenance workers
So, we know what makes a job dangerous, but what makes one safe? Normally, safety is found in occupations that demand little to no travel and very low physical activity. Additionally, the work environment plays a role. First, are you operating in safe conditions? Is there a low-risk of a workplace accident? Safety is usually found in fields such as technology, finance, business, and academia. Check out the list below for specifics.
Computer Systems Analyst
Medical Record Technician
The Effect on Your Life Insurance
Obviously, higher risk means higher premiums. There is a higher chance of insurance companies having to pay out on your policy, so they charge more. Some companies establish a specific rate for hazardous jobs. Essentially, this means they would require a few dollars extra for $1,000 of coverage. Thus, if you had a $100,000 life insurance policy, your annual premiums would increase by several hundred dollars. Over the years, that can really add up.
In conclusion, if you work in one of the dangerous professions listed above or have another job that puts your life at risk, life insurance is crucial for you. It’s important to be proactive about securing coverage. Know your options and compare quotes to find the company that will give you the best deal. Most importantly, make sure you take the necessary steps to protect yourself and your loved ones. When your life is at risk, it’s no time to roll the dice. When your job is risky, play it safe.