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From pilots to roofers, dangerous jobs present hazards that your family might not be financially prepared for. If you die on the job, a life insurance policy can help make sure your family will be secure without your income. But can you qualify for life insurance if you work in a high-risk occupation? Yes, you probably can buy life insurance if you hold down a risky job. But buyer beware—you’ll likely end up paying more for your policy.
When you apply for a life insurance policy, one of the factors taken into account is your life expectancy. Here’s how this might look:
When you apply for coverage, a life insurer will take a close look at your life expectancy. If you work in a high-risk occupation, your life expectancy might be lower than normal.
During the application process, the insurer will place you in a risk class to help determine your eligibility and premium. A high-risk job generally will land you in the “substandard” or “rated” risk class, reserved for those who are riskier to insure than other policyholders.
If your life expectancy is lower, you might pay premiums for a relatively short period and your death benefit might be paid out earlier. An insurer might seek to ease this potential financial risk by charging a higher premium.
The insurer also might limit the types of life insurance you’re eligible for.
In the worst-case scenario, a life insurer might reject your application if you work in a risky occupation.
Other factors that go into determining your life insurance risk include:
A number of jobs are considered high-risk for life insurance. These include:
If you hold down a high-risk job, you likely will pay what’s known as a “flat extra” rate for a life insurance policy. This rate is tacked on to your regular life insurance premium. Typically, the rate is $2.50 to $5 for every $1,000 of coverage.
With the added cost of high-risk life insurance policies, looking for ways to save is extra important. Here are six ways you may be able to reduce your premiums:
As you’re shopping for life insurance, be aware of the types of coverage that are available:
Working in a high-risk occupation puts you at a greater risk of paying more for life insurance. But don’t be discouraged. If you do things like shopping around for coverage and considering different types of life insurance policies, you can lessen your family’s financial risk and still enjoy the peace of mind that life insurance provides.
At O1ne Mortgage, we understand the unique challenges faced by individuals in high-risk occupations. Our team is dedicated to helping you find the best life insurance policy to suit your needs. Call us today at 213-732-3074 for any mortgage service needs. Let us help you secure your family’s future with the right life insurance coverage.