You work hard to provide for your family. But could your career work against you when applying for a life insurance policy?
When underwriting a life insurance policy, insurance companies consider many different factors. Believe it or not, your occupation is one of them!
I’m fortunate that, as a freelance writer who works from a home office with very minimal travel or exposure to danger of any kind, my career choice is a rather safe bet for insurers. But if you have a job that puts you at higher risk of injury or death, you’ll likely receive a less favorable rating and get quoted a higher life insurance premium.
What occupations might life insurance companies consider hazardous?
These Jobs Will Likely Raise Your Life Insurance Premium:
- Professional fisherman
- Mine worker
- Police officer
- Electrical power line installer
- Construction worker
- Truck driver
- Sales position that requires a significant amount of driving
- Trash collector
If you make a living in one of the above professions or another that might be considered high risk, don’t get too discouraged or seek a career change. Insurance companies’ underwriting guidelines differ from company to company. Consider talking with a trusted insurance professional to introduce you to companies that will give you the most favorable rates.
Get to Work in Other Ways to Get a Better Life Insurance Premium
Remember, there are other things you can do to better your chances of getting a lower-cost premium. Eat a healthful diet to maintain optimal well-being, don’t smoke, keep your weight in check, manage your blood pressure and cholesterol, exercise regularly, and take medication as directed by your physician. Wise lifestyle choices and following doctors’ orders show dedication to achieving wellness.
And insuring a healthy person is, of course, a less risky proposition than insuring someone who doesn’t take control of her own health.
Term Life Insurance: Affordability at Work for Your Peace of Mind
For life insurance that offers financial protection to your family without high premiums, ask about term life insurance policies. Term life pays a death benefit to your beneficiaries if you die during the “term” of the policy (the specified time that the policy is in effect). Typical terms are 10, 15, 20, 25, or 30 years, and you can even get policies for terms as short as five years or even one year.
Term life policies are not only inexpensive; they also offer flexibility. With most policies, you can convert them to a permanent policy (such as universal or whole life) within a certain amount of time. Or you can renew a term life policy when it’s due to expire. Both options will result in a higher premium, but they extend the amount of time your family would receive a payout if the unthinkable were to happen to you.
Don’t Let Lack of Life Insurance Work on Your Nerves and Weigh on Your Conscience
Whether you work in a high-risk job or one that’s as safe as they come, the reality is that the unexpected and unfortunate can happen. According to the 2015 Insurance Barometer Study by Life Happens and LIMRA, one quarter of people surveyed said they believe they have an inadequate amount of life insurance coverage. Does that sound familiar?
Sleep a little more soundly by knowing you’ve done right by your loved ones. Take some time to learn more about the life insurance options available to you.