Does your job affect your life insurance?

quick Facts

  • Your occupation affects your life insurance rate
  • People in occupations considered high-risk pay higher premiums than others
  • If you are in the marijuana industry, the major life insurance companies will not insure you due to federal laws

Does your job affect your life insurance? It may sound like an odd question. After all, we often think of life insurance as personal and separate from our work, but the truth is that the profession one chooses can affect its coverage beneficially.

Insurance companies will classify some jobs as more “hazardous” than others, and these individuals may pay more for a policy or have exceptions where they will not pay even if they die on the job.

Knowing how life insurance works and its effects on your financial well-being is essential to making an informed decision when choosing a policy. In this post, we will explore this concept in more detail and discover what you need to consider when exploring life insurance options.

Why does occupation affect life insurance?

Does your occupation affect your life insurance premiums? Simply, yes. Life insurance companies look at actuarial tables to calculate the probability that each individual will die at any given age, and they use this information to determine the cost of life insurance. So if they determine that your occupation puts you at risk of dying earlier than expected, they may increase your occupational life insurance premium accordingly.

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How does your job affect life insurance rates?

Your occupation directly affects how much you will pay for life insurance. For example, hazardous jobs, such as high-rise construction, fishing, or mining, come with an additional fee of an additional $2 to $5 per $1,000 of coverage per year.

Money can add up quickly if you need a big policy and a dangerous job is identified.

If your lifestyle or profession is not very risky but is still considered high-risk by life insurers, such as a skydiver or pilot, they may offer non-standard rates, which cost more than standard rates.

What professions increase life insurance rates?

As we’ve discussed, some occupations will increase the cost of life insurance. A little bit of the Jobs that can raise life insurance rates Includes:

  • tree workers
  • Aircraft pilots and flight engineers
  • ceilings
  • police officers
  • Fishing and hunting workers
  • Waste and recyclables collectors
  • Construction / Trades
  • drivers and truck drivers
  • Firefighter
  • cattle rancher
  • Agriculture managers
  • Iron and steel construction workers
  • Floor maintenance workers

If you work in any of these professions, you should expect to pay significantly more for life insurance.

Underwriting guidelines vary from insurance company to insurance company, so you can get coverage at a reasonable price with one company but not another.

Marijuana industry jobs and life insurance

With the federal legal status of marijuana still up in the air, major life insurance companies will no longer offer policies to those in the cannabis industry.

Unfortunately, this means that the options for providing financial security to the families of employees after their death are very limited.

Although some States have legalized marijuana For recreational or medical use, the mainstream insurance companies have not yet offered life insurance policies for industrial workers. As such, they must look for workarounds to ensure that they have protection in the event of something unforeseen.

How does your occupation affect life insurance commuters?

Riders are additional features or coverages that you can choose in addition to your life insurance policy. commuter life insurance It usually covers life events that are not covered by standard insurance policies.

Depending on your job, you may not be eligible for some life insurance riders, such as the disability income rider that pays you if you become disabled and unable to work. Life insurance companies usually do not issue this type of cavalry when your job involves a high risk of disability.

However, you can always purchase an individual or other disability plan Supplementary life insurance For added security if something unexpected arises.

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How to save on life insurance if you have a high-risk profession

If you have a job with a high degree of risk, such as working in the military or law enforcement, you may be concerned about how this will affect your life insurance rates. The good news is that there are still ways you can do this Save money when buying life insurance Even if you have a high risk profession. Here’s what you need to know.

Ask to reconsider

If your job responsibilities change and you think you might qualify for lower rates, you can apply for reconsideration. Talk to your life insurance company and explain why you think you should get a lower rate.

Work with an independent broker

If you want to make sure you’re getting the best rates, consider working with an independent insurance broker who specializes in this Life insurance for high risk individuals.

They can help you identify the best life insurance companies for your unique situation and negotiate on your behalf for the most competitive rates available.

Shop around

As with any insurance purchase, it pays to shop around for the best rates. Insurance companies have different underwriting standards, and you may find one that offers more competitive rates than the current ones. Make sure to get quotes from several companies and compare them.

Pay your installments annually

Depending on your insurance company, you can save anywhere from 2% to 5% on your premiums by paying annually instead of monthly. In addition, most insurance companies offer discounts if customers pay their premiums in advance, which saves more money in the long run.

When speaking with an independent broker or life insurance company representative, it’s always worth asking about the special discounts available.

Consider the Accidental Death Benefit (ADB)

An Accidental Death Benefit (ADB) plan is a type of life insurance coverage that provides much needed financial protection to you and your family in the event of accidental death or severe injury.

It is usually less expensive and easier to buy from Permanent life insurance or any Type of life insuranceThis makes it an excellent option for those who may not qualify for traditional plans due to the increased risks associated with their job.

How does a career change affect your life insurance?

While most occupations will only affect the cost of premiums slightly or not at all, some high-risk occupations may result in increased rates or difficulty in finding life insurance coverage altogether.

However, there are still steps you can take to secure affordable life insurance, even if you have a high-risk profession, such as working with an independent broker or asking for a review.

It should be noted that if you start a job that is considered risky, your insurance company cannot change your rates because the underwriting process takes place at the time of application.

However, if you moved to a less risky job, you should call your life insurance company and let them know. They may adjust your premiums in light of a new job change. Do not cancel your current policy until you are offered a new policy, just in case.

Knowing how your job affects life insurance is key to finding reliable life insurance coverage at an affordable price, so research before committing to any policy.

Frequently Asked Questions

What jobs are considered “high risk” for insurance companies?

Insurance companies typically consider any job that poses a threat of injury or death to be high risk. This list includes occupations such as fishing, law enforcement, pilots, bartenders, construction, power line construction and maintenance, logging, and marine work.

Does income affect your ability to get life insurance?

Income does not directly affect your ability to obtain life insurance. However, it can contribute to the amount of coverage you qualify for. For example, higher incomes may allow you to get more coverage from a life insurance policy than someone with lower incomes.

Can I get life insurance if I work in the marijuana industry?

If you work in the marijuana industry, you may still be able to get life insurance, though it depends on the insurance company. Unfortunately, most life insurance companies do not insure employees within the industry due to their illegal status at the federal level. However, some smaller companies may offer coverage, so it’s worth checking with them.

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Editorial Tips: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective third party source for all things life insurance. We update our website regularly, and all content is reviewed by life insurance experts.

Rachel Brennan has been in the insurance industry since 2006 when she started working as a licensed insurance representative for 21st Century Insurance, during which time she held her property and casualty license in all 50 states. Several years later, she expanded her expertise in the insurance field, earning a license in health insurance and AD&D insurance as well. I worked for a small health in…

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Rachel Brennan
Licensed insurance agent
Rachel Brennan

Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in projects from retail to finance, and job positions from cashier to administration, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his life. professional. In his daily interactions, he aims to live his business philosophy in how he deals with…

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Brandon Frady

Licensed insurance agent

Brandon Frady

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