One of the main considerations you’ll have when purchasing life insurance is the cost of your premium. Insurance carriers will evaluate the risk of insuring you based on information you share in your life insurance application and the result of your medical exam. The riskier you seem to insure, the higher your premium will be. There are several factors that affect life insurance premiums, such as driving history, health, hobbies, finances, and criminal record.In addition to the factors above, did you know your job also plays a role in determining your life insurance premiums? For some high-risk professions, finding affordable life insurance can be a challenge. In this article, we’ll help you understand the impact of your profession on your life insurance rates.
Why does my job impact my life insurance rates?
Your job’s impact on your life insurance rates will depend on how risky it is. If your job typically requires heavy protective gear or requires you to work with or in proximity to dangerous equipment, your insurance premiums will likely be higher. For example, your health and safety are at much less risk working in an office than on a construction site. Even if you don’t have a dangerous job, you could still be seen as high risk due to your profession, like if you drive long distances for work and therefore have a greater chance of being in a car accident.For some high-risk occupations, you may even be charged additional fees on your life insurance rates. You may also be assigned a “table rating,” a system that carriers use to price rates for people with an increased risk of premature death. In certain cases, you could be declined life insurance altogether.
High-Risk Jobs that Have the Highest Life Insurance Rates
Jobs that are considered high-risk and may impact your life insurance rates include:
Law enforcement
Fishing industry
Construction workers
Mining and quarry workers
Oil and natural gas
Electric powerline construction or maintenance
Aviation jobs
Bartenders
Firefighters
Lumber workers
Active military members
Employment in these industries does not mean you’ll automatically be denied a life insurance policy. You just may be subject to higher premiums. If there are any concerns about your job, your insurance agent might ask more clarifying questions about what you do, where you perform your work and other specifics.In addition to your life insurance premiums, your high-risk career can impact the insurance riders that are available to you. For example, many risky careers automatically make you ineligible for a disability income rider which pays monthly benefits if you’re injured and can’t work. Most insurance companies won’t offer it to people who face a high chance of being disabled in the course of their work.It’s important to be fully honest and transparent about your job, its risks, and your responsibilities. Lying about your job, hobbies, health and other factors could impact you being approved for the policy or how the death benefit is paid out to your loved ones.
How does my income impact my life insurance rates?
Your income won’t play into health classifications or premium rates, but it does impact the total amount of insurance coverage you’re eligible for. Some insurers may require minimum household incomes to qualify for coverage.
How to Reduce Life Insurance Costs if You Have a High-Risk Job
People in high risk occupations who want to save money on life insurance costs should consider the following:
Shop for term life insurance: Term life insurance is one of the most affordable types of life insurance, especially since you only buy it for as long as you need it. If your high-risk job situation isn’t permanent, you could shop for a shorter term policy and reevaluate your options down the road.
Take group life insurance through your employer when possible: While group life insurance doesn’t typically offer the same level of protection that a personal term life insurance or permanent life insurance policy would, it can provide some coverage that helps reduce the coverage you will need to qualify for on your own.
Re-shop if you change jobs or your job duties change: You can always go through the underwriting process again. Even though life insurance typically becomes more expensive as you get older, you could still see a significant decrease in premiums due to moving into a less-dangerous role at your company or leaving a dangerous job altogether.
Pay your premiums annually: Oftentimes insurers will offer an additional discount if you choose to pay your premiums on an annual basis instead of monthly. This can sometimes result in savings as high as 5%.
Comparison shop with SelectQuote: By working with SelectQuote, we can shop multiple trusted life insurance companies at once to give you a better picture of your coverage options.
Looking for life insurance? Let SelectQuote find the coverage that is right for you.
Even though a high-risk job makes shopping for life insurance a more complicated affair, it’s still possible to find affordable coverage. If you’re looking for a way to compare life insurance rates but don’t have the time to commit to shopping around, we can help. At SelectQuote, our licensed insurance agents can save you time and money by comparing prices and coverage from some of the most trusted insurance companies in just minutes.
