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How Risky Occupations Can Affect Your Life Insurance Premiums

How to Apply for Life Insurance With a Risky Occupation & Secure the Best Rates in [2022]

There are many risky occupations that most people would never consider negatively impacting a life insurance application. These jobs can raise a red flag and place them in arisky occupations and life insurance rates high-risk life insurance classification. However, using the right company with an experienced independent agent can significantly impact the outcome of your application. The insurers are concerned about an applicant’s risky occupation that could one day take his life.

Your job could be just as serious as a medical condition or a heavy smoker. Thousands of people in the United States die yearly due to an accident or an illness connected to their job activities.

 

Examples of Risky Occupations That Can Increase Your Rates

Many people do not realize that their job can cause complications in purchasing life insurance. Often, the rates will not go up if you apply with a life insurance company that is more liberal with your specific occupation.

This is just a sample of some of the occupations that can cause an increase in your life insurance rates if you were to apply for coverage.

 

How Can You Make Sure You Are Getting the Lowest Rates?

This responsibility lies with your independent agent (broker). We use over 40 top-rated companies, and we shop the market hard to make sure we have our applicants apply with the best insurers. When the application process is completed, we carefully review the final rates. If we believe there is a possibility of getting a lower premium for our client, we apply to several other companies.

Once all projected rates come in, we choose the carrier that offers the lowest rates and then present them to our clients for their consideration. When the smoke clears, our client will be guaranteed to receive the lowest premium possible. The complete process is straightforward and requires little to no work for the applicant.

 

How Do the Carriers Adjust Your Rates When You Have a Risky Occupation?

The most common way is by adjusting your health classification to fit the extra degree of risk they are assuming to insurance your life.

Most people would never realize that some of the more risky occupations could raise a red flag on your life insurance application. Your rates may be affected in several 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.

Read our blog post designed to explain how health classifications work and how you can get the best classification possible if you apply.

Here is a basic breakdown of the classifications:

  • Preferred Plus
  • Preferred
  • Standard
  • Standard Plus

If you use tobacco:

  • Preferred Tobacco
  • Standard Tobacco

 

What Are Flat Extra Fees & How Do They Work?

Flat Extra fees are another way an insurance company can charge an additional premium to cover a higher risk than the standard type. The flat extra fees are usually used for dangerous occupations, sports, and hobbies resulting in the insured’s death. This is done by using an additional dollar amount added for every $1,000.00 in life insurance coverage.

Remember that the flat extra can be anything the insurance carrier wants it to be at the time of the application. For example, some standard 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 had a hazardous sport such as drag racing, you could 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 times the $2.50, giving you a flat extra fee of an additional $250.00 per year added to your base premium.

 

What Is a Medical Pre-Screen & Can It Help Lower My Premiums?

A medical pre-screen is a service that your agent should provide. A medical pre-screen takes about ten minutes, and it entails answering a series of questions so we have a better understanding of what we can expect with your application. It will revolve around possible health conditions, hazardous occupations, dangerous sports, prescription drugs, and more.

This eliminates surprises during the underwriting process and helps us choose the best company to have you apply with. The result will be getting the lowest premiums possible once the application process is completed.

 

Should I Be Working With An Independent Agent?

If you are looking for the best life insurance rates with a risky occupation, the independent agents, alsoindependent insurance agents known as brokers, work with all the top life insurance companies in the nation. They can choose the best company to apply with, so you get the lowest rates. On the other hand, captive agents work for companies like State Farm or Geico and have only one company to place you with.

Most of their companies do not even insure any high-risk applicants. Also, independent agents work for their client’s best interests, not insurance companies like the captive agents.

 

How Can I Apply for Life Insurance With a Risky Occupation?

We always recommend using our modern SnapApp telephone application system over the telephone. You have three ways to apply: paper, online, or phone. Applying over the phone will take about 20 minutes to complete and be the most effective use compared to your other options available.

Paper applications are obsolete and online applications can be confusing to many people and require a computer and a fast internet connection. 


Combining a table rating increase and a flat extra is possible simultaneously. A typical example of this would be an individual with medical issues and a dangerous job or sport.


In Conclusion

If you believe your job may be a risky occupation, contact us to help you. This is our business, and we have successfully done this for over 30 years. Buying life insurance may look complicated, but it is quick and easy when using the right agent to help you every inch of the way. Please read some of our other blog posts, and do not forget to use our instant quoting system to see all your options.

All the best,
Jack Venturi
708-334-6226


If you have a hazardous occupation and are concerned about how it will affect your life insurance rates, contact us today to help you with no cost or obligation. As brokers, we work for our client’s best interests and not insurance companies. Our job is to help you get approved for the best policy for your needs with the lowest rates possible. You can also set up a time at your convenience to talk.  


 

Jack Venturi Independent Life Insurance Agent

Jack Venturi

Independent agent and founder of BestChoiceLifeInsurance.com

Jack Venturi has over 30 years of experience selling individual and commercial insurance including Property & Casualty, Health, Disability and Life insurance. Jack has helped thousands of people all across the United States purchase the best life insurance products at the lowest possible premiums over the phone (708)-334-6226 and online.

Medical Pre-Screening

pre-screen your health conditions If you have any medical conditions, request a five-minute pre-screen by completing our electronic form. We will prepare a custom quote specifically for you with an accurate premium projection based on your health conditions.

Just click this link to activate our online pre-screening questionnaire, and we will do the rest. This will help you get an accurate idea of your rates if you apply for life insurance. This form is confidential, secure, and encrypted, and it’s a snap!

Medical Pre-Screening