Occupation And Life Insurance
Updated: Sep 21
The Relationship Between Your Occupation And Life Insurance
The first thing to know when it comes to life insurance is that insurance companies have very strict evaluation systems. To explain, they look at certain factors when approving policy applications. Furthermore, they assess the risk to determine the costs of life insurance packages. In general, most people are aware that physical health is one of the main risk factors considered when it comes to life insurance. However, not all of the variables considered are as obvious as blood pressure and the use of tobacco. For example, the occupation of the applicant plays a big role. Some people have dangerous professions that tend to increase the cost of life insurance policies.
What Is a High-Risk Job?
First of all, an occupation is considered high-risk or hazardous if its premature death level is very high. This means that the people who work in these occupations have a higher chance of dying before they reach the official life expectancy age. Examples of such occupations include people who fish, log, or even provide security services. Particularly, they are in danger of being killed by armed robbers, swept off a boat by tides, or even hit by a falling tree. Other occupations are high risk because they expose the worker to very serious conditions that endanger their long-term health. For instance, these include jobs that expose the worker to radioactive rays that may cause the development of cancerous cells. Indeed, some insurance companies provide a list of the most dangerous occupations.
Most High-Risk Jobs in America
Ranchers and farmers, among other agricultural managers
Truck drivers and sales workers
Repairers and installers of electrical power-lines
Steel and structural ironworkers
Flight engineers and airline pilots
Fishers and other fishing workers
Off-shore oil drilling workers
Getting Insurance Coverage with a High-Risk Job
On one hand, some insurers rely on their internal data of the most dangerous occupations. They compile their list from the occupations of clients who need frequent compensation. This can put some people at a disadvantage if they are in a job considered dangerous, but have never experienced any of the effects. Sometimes, insurance companies charge more for an entire group of dangerous jobs. Others have a scale and charge varied costs, dependent on how risky the occupation is.
Due to this fact, most of these occupations offer group life insurance coverage to help people secure a lower rate. However, this is not always the best option because of the following issues:
The amount is limited
This coverage excludes you from benefiting if you lose your employment
Your employer could exclude themselves from arrangements such as contract work
In conclusion, if you work in an occupation that is considered to be risky, life insurance will likely cost you more. Still, this most likely means you need life insurance coverage more than the general population. Specifically, your research and figure out what the insurance company considers high-risk. Compare companies that have blanket rates versus varied costs. In addition, see if you can get coverage through your employer. You have options and will be able to find reasonably priced coverage that will fit you.