Risky Occupations and How They May Affect Your Life Insurance Premiums
Risky occupations, most people would never consider that the nature of their job could put up a flag and place them in a high risk life insurance classification. Using the right company with an experienced agent can make a huge impact on the outcome of your application. The insurers are concerned about any risky occupation an applicant has that could one day take his life.
Your job could be considered just as serious as a medical condition. Thousands of people in the United States die each year as a result of an accident or an illness connected to their employment.
Occupations that could increase your rates
Many people don’t realize that their own job can cause complications purchasing life insurance. Many times the rates will not go up if you are applying with a company that is more liberal with your specific occupation.
- Life insurance for Hazardous Occupations
- Life insurance for Loggers
- Life insurance for Iron & Steel Workers
- Life insurance for Aviation Pilots
- Life insurance for Ranchers and Farmers
How can you make sure your getting the lowest rates once you apply?
This responsibility lies with your independent agent (broker). As with us, we use over 40 top rated companies and we shop the market hard to make sure we have our applicants apply with the most promising insurers. When the application process is completed, we carefully review the final rates. If we believe there is a possibility to get a lower premium for our client, we submit the application to several other companies.
Once all projected rates come in, we simply choose the carrier that offers the lowest rates and then present them to our client for their consideration. When the smoke clears, our client will be guaranteed to receive the lowest premium possible. The complete process is very simple and requires little to no work for the applicant.
How high risk life insurance can increase your rates:
Classifications & Ratings
Most people would never realize that some of the more risky occupations could put up a red flag on your life insurance application. Your rates may be affected in a number of different ways such as the health classification you will be placed in after you apply. The classification you receive can vary from one carrier to another depending on their underwriting guidelines.
Here is a basic breakdown of the classifications:
- Preferred Plus
- Standard Plus
If you use tobacco:
- Preferred Tobacco
- Standard Tobacco
Flat Extra Fees for Risky Occupations
Flat Extra fees are another way an insurance company can charge an additional premium to cover a higher than normal risk type of applicant. The flat extra fees are usually used for dangerous occupations, sports and hobbies that can possibly result in the insured’s death. This is done by using an additional dollar amount added for every $1,000.00 in life insurance coverage.
Keep in mind that the flat extra can be anything the insurance carrier wants it to be at the time of the application. Some of the more common flat extra numbers would be $2.50, $5.00 or $7.50 per $1,000.00 of face amount otherwise known as the death benefit.
Here is an example of a $2.50 flat extra fee:
If you applied for a $100,000 life insurance policy and you had a hazardous sport such as drag racing, you could commonly receive a flat extra charge of $2.50 for every one thousand dollars in coverage. Since you are requesting 100 thousand dollars of coverage, you would multiply 100 time the $2.50 which would give you a flat extra fee of an additional $250.00 per year added to your base premium.
It is possible to have a combination of a table rating increase and a flat extra at the same time. A common example of this would be an individual with medical issues and a dangerous job or sport.
If you believe you may be in a high risk market, contact us and we can help you. This is our business and we have been successfully doing this for over 30 years. Buying life insurance may look complicated and intimidating, but it is quick and easy when using the right agent to help you every inch of the way. Read some of our blog posts and don’t forget to use our instant quoting system to see what your options are.
All the best,
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