Purchasing life insurance for high-risk occupations is simple and not expensive as you may think. Approximately 11% of Americans have high-risk jobs. More people than ever have hazardous occupations because they usually pay higher wages. On the other hand, most people in the workforce have relatively safe trades with little risk of getting injured or killed. These can be office workers such as accountants, bankers, and school teachers.
Another class would be the blue-collar occupations such as forklift drivers, machinists, welders, and auto mechanics, to name a few. There is seldom an issue with these job descriptions due to their more mild risk factors.
The most dangerous jobs include professional loggers, ironworkers, commercial fishermen, farmers, ranchers, airplane pilots, race car drivers, commercial divers, and electrical power line repairmen. Unfortunately, the statistics for these hazardous occupations are much more likely to have on-the-job fatal accidents.
Table of Contents
- Life Insurance for High-Risk Occupations
- Can I Buy Life Insurance With a High-Risk Occupation?
- Can a High-Risk Occupation Increase My Life Insurance Rates?
- What the Life Insurance Companies Will Ask You
- What are Flat Extra Fees, and How Do They Work?
- The Advantages of Working With an Independent Agent
- What Life Insurance Companies Have the Best Rates?
- The Most Hazardous Occupations in America
- The Three Types of Life Insurance for Hazardous Jobs
- Medical Pre-screening Before You Submit Your Application
- Apply and Get Approved In Less Than 24 hours
- Comparing Life Insurance Quotes for Dangerous Jobs
- In Conclusion
There is no question about it; yes, you can. I have never seen an individual with a high-risk occupation apply and be declined. The only time they could is if they have severe medical conditions that have deteriorated their health. Regardless of your work, you should apply successfully and get approved for life insurance. Buy a new policy. A few years ago, I was able to find term life insurance for a professional wing walker. I thought it was virtually impossible at the time, but I wanted to do my homework and find this individual life insurance coverage.
Most life insurance companies said NO! But I found one that would ensure this man who made his day. This task could only be performed by an independent agent (broker) with access to the complete life insurance marketplace.
Your health history will always be the most crucial factor the life insurance companies are interested in. If you have a high-risk occupation or not, your health will always be number one on the list.
A hazardous occupation can cause your life insurance rates to increase when you apply. Your rates will depend on precisely what your high-risk occupation is. This is performed case-by-case based on your exact job duties in your line of work. For example, if you are a steel or ironworker, your specific job duties each day could vary to the extreme. One worker may work on the ground floor going over blueprints while another assembling steel beams on the 28th floor.
The life insurance underwriters do not just drop everyone in the same category; They ask many questions, so each risk is appropriately assessed. There is no considerable rate increase to be worried about anyway, so whatever your dangerous job is, you should receive very affordable rates.
A flat extra fee is an additional charge added to the base rate to cover the additional risk of insuring the applicant. A flat extra fee is a primary way an insurance company would cover the added risk of an individual with a high-risk occupation. If your health is below average, your health classification would be adjusted accordingly, for example, from preferred non-tobacco to standard plus or standard non-tobacco.
A flat extra fee would be added when a dangerous job is involved. Here is an example of a flat extra fee being added on to an imaginary 35-year-old male purchasing a 20-year term policy for $250,000.
Here Is the Premium Breakdown:
The base premium for this policy would usually cost this applicant $750.00 per year because the applicant is a commercial fisherman with a dangerous job on an ocean-going fishing boat. The insurance company will add a $2.50 flat extra fee to the policy. The base policy is $750.00 per year.
The flat extra fee of $2.50 is based on each $1,000.00 of coverage and, in this case, is 250. Here is a breakdown of the calculation. The $2.50 is multiplied by 250 for a flat extra fee of $625.00 and a total of $1375.00 per year. Flat extra fees can vary depending on the specific high-risk occupation in question.
The specific life insurance company you apply with will be your most important decision. All life insurance companies underwrite their applications differently. Some companies do not usually charge flat extra fees for many hazardous occupations. Your agent can help you choose the best insurer to apply with.
The life insurance companies will ask several questions to determine your level of risk on your job. Here are a few questions that commonly come upon applications for life insurance with high-risk occupations:
- Do you have any safety certifications for your job?
- Do you work with any dangerous machinery?
- Do you work with hazardous chemicals or acids?
- What type of safety equipment do you use?
- Do you work in a hazardous environment?
- Do you take any safety classes?
- Do you have to follow a list of safety guidelines?
- What type of daily activities do you work with?
- Do you use any drugs or alcoholic beverages?
- What are your specific job duties?
An independent agent is another term for an insurance broker. The independent agents do not work for insurance companies. The agents that work for companies such as State Farm are called captive agents. The independent agents have their client’s best interest in mind, whereas the captive agents have their insurance company’s best interest. The captive agents are employed by their insurance company and prioritize the client after the company.
An independent agent has access to the whole life insurance market, such as us, with over 40 carriers we are partnered with. Therefore, it is crucial to shop the market to find the best rates for applicants with a high-risk occupations.
This question does not have a specific answer because your exact occupation will determine the best company. All life insurance companies underwrite their applications differently. They all look at particular occupations differently when determining the risk factor for the job. We use a case-by-case approach to apply with the carrier that will offer you the lowest rates.
These companies listed below are just a sample of some of the best carriers with excellent rates for hazardous occupations.
- Prudential Life – learn more
- Liberty Financial
- Banner Life – learn more
- AIG American General
- Protective Life
When an application is approved, we are not satisfied with the result. So we apply to the other companies to get their offer. When the smoke clears, we will give our applicants the results and our best recommendations to choose from. Our client will receive the lowest rates possible when everything is said and done.
- Loggers and Lumberjacks: This is one of the highest-risk occupations
- Airplane & helicopter pilots along with flight engineers
- Roofers primarily use hot tar
- Structural iron and steelworkers
- Truck drivers
- Refuse and garbage collectors
- Electrical power-line repairman
- Construction workers and laborers
- Commercial fisherman working ocean seas
- Farmers and ranchers have a high rate of accidents
- Commercial derrick operators in the oil, gas, and mining industry
The US Department of Labor’s Bureau of Labor Statistics reported that between 2008 and 2017, 1,566 oil and gas drilling industry members were killed from on-the-job injuries. Those numbers reflect almost the same amount of US Military Soldiers and Marines killed in Afghanistan during the same period!
Term Life Insurance:
The term will be your best choice, no matter how you look. Term insurance is the best option for cost and overall financial protection. Term insurance is the first life insurance product sold in the United States. It is the most cost-effective plan design because you can buy it for as long as you need it. You can choose term life insurance products with a full line of term periods, but the majority will be 10 to 40 years. The term policies can also be converted into permanent life insurance (universal life) during your term policy period.
This is a great way to go if you are looking for a plan design with no gaps in coverage or periods. Universal life insurance is a permanent life insurance product that will last for the rest of your life. All you have to do is pay the premiums. Years ago, Whole Life was famous, but it was far too expensive as time passed. Universal Life is much more affordable and gives you the same lifetime protection. It does cost over double the price of the term, but it will last the rest of your life with no possible loss in coverage like all term products do after the term period ends.
No Medical Exam:
These plan designs are getting more popular as the years go by. No medical exam life insurance is also known as Non-Med life insurance. The application is shorter than a fully underwritten conventional plan design, eliminating the physical exam. Many people like this because they don’t have to take a blood test. The side effect is that these plans cost a little more than conventional term life insurance. These plans can work great if you want to skip the exam and quickly get approved.
No Medical Exam life insurance is another good choice to consider. Most applicants would jump at the chance to eliminate an exam. But getting the lowest rates will usually come with the entire underwriting process. The no medical exam life insurance plan designs are something you don’t want to overlook. These plan designs can easily be used for people with high-risk occupations that want swift underwriting times.
High risk refers to a higher than average probability of someone having an accident or illness that could lead to a disability or death.
This is the same process as running a medical pre-screen when an applicant has medical conditions. Simply communicating with a few companies and getting their viewpoint on the outcome of an application can save a lot of time.
Taking a few extra minutes of an agent’s time to pre-screen an application before formally applying is something we do regularly. It is always wise to know the result before applying.
You may use our instant rating system to compare life insurance quotes from over 40 top-rated companies. You will find the companies are compared side-by-side, so you understand which companies offer the lowest rates. You will need to contact an agent (hopefully us) to get a custom quote from your high-risk occupation. We can pre-screen any medical conditions and your field to provide you with an accurate cost for life insurance if you apply.
Suppose you have a dangerous occupation and are worried about getting life insurance. Put an end to your worries and give us a call today. Life insurance companies and ourselves work with people daily with high-risk occupations, medical conditions, and even hazardous hobbies such as skydiving. As long as your health is in reasonably good shape, you will have no problems with the relaxed underwriting of today.
All the best,
If you have any questions about applying for life insurance with hazardous occupations, contact us today and let us help you with no cost or obligation. Remember that we are brokers and work for our clients, not insurance companies. Our job is to help you get approved for the best policy with the lowest rates. You can also set up a time at your convenience to talk.