Becoming a rideshare driver offers an alternative to the traditional 9-to-5 career and offers flexible hours and a unique, ever-changing setting. However, this occupation requires spending a significant amount of time behind the wheel, which increases your risk of being involved in an auto accident. You want your loved ones to be financially protected should the worst happen, so finding a life insurance policy that meets your family’s needs is crucial.
As for any applicant, your occupation can impact your life insurance premium, so it’s important to understand the criteria carriers consider when calculating your rates. In this article, we’ll outline how a career as a rideshare driver may affect your premium and help you understand your options when shopping for life insurance.
Life Insurance Options for Rideshare Drivers
Finding the right type of life insurance as a rideshare driver will depend on several personal factors like age, health, and financial obligations. Here’s a look at the life insurance policies that may be available to you and the benefits they offer:
Term Life Insurance: Term life insurance is a type of policy that provides coverage for a specified period, usually ranging from 10 to 30 years. It offers a straightforward approach to life insurance, providing a death benefit to the beneficiaries if the policyholder passes away during the term. Term life insurance can be a good option if you’re a rideshare driver due to its affordability and flexibility. Your occupation may require unique insurance needs since you work in a high-risk environment and may have varying income levels from month to month. Term life insurance allows you to obtain coverage for the duration of your rideshare career or until your financial responsibilities change.
Permanent Life Insurance: Permanent life insurance offers coverage for a policyholder’s entire life as long as they continue to pay the premiums. It offers a death benefit to the beneficiaries upon the policyholder's death and can accumulate cash value over time. This cash value can be accessed through policy loans or withdrawals, benefiting rideshare drivers who may need funds for emergencies or other financial needs. It provides lifelong coverage, ensuring the driver's loved ones are financially protected no matter when the policyholder passes away. This is especially important for rideshare drivers who may not have access to employer-sponsored life insurance.
Final Expense Life Insurance: Final expense life insurance is a type of permanent life insurance that’s specifically designed to cover the costs of outstanding debts and funeral or burial expenses. It provides a fixed death benefit that the beneficiaries can use to cover these costs. For rideshare drivers, final expense life insurance can be a good option because of its affordability and ease of qualification. Final expense coverage is also typically easier to qualify for than other life insurance policies. It usually doesn’t require a medical exam, and the application process is relatively simple.
Suppose you’re a rideshare driver under the age of 60 and in relatively good health. In that case, you may also qualify for instant coverage life insurance, which bases your rates on other health and lifestyle assessments. When choosing a policy, it’s important to consider your financial goals, your family’s needs, and your overall health.
Does working as a rideshare driver affect your life insurance rates?
As a rideshare driver, your occupation and time spent behind the wheel can impact your risk profile when applying for life insurance. For example, if you are involved in more accidents or have a higher chance of injury or death due to the nature of your work, it may result in higher premiums for life insurance. Discussing your occupation as a rideshare driver with your insurance provider is important to ensure you have the appropriate coverage and to understand any potential impact on your life insurance rates.
SelectQuote Can Help Rideshare Drivers Find Affordable Life Insurance
At SelectQuote, our experienced licensed insurance agents can help you understand the role of your career in your life insurance rates. Even though your occupation may impact your rates, SelectQuote can search hundreds of policies with dozens of carriers to still find you a rate that works for your budget. We’ll walk you through your options for life insurance as a rideshare driver, help you understand all the factors and information that are considered during the application process, and search and compare plans from different trusted carriers. With our proprietary technology, we can help you find the right fit for your needs in just minutes.
