Obviously, when you buy life insurance, they will want to know ALL about your health. Everything from the smallest pill to the biggest surgery.
What many people often don’t realize is that there are others who, although perfectly healthy, may also pose a high risk to the insurer. This could be due to their occupation. For example, there are certain jobs that are more dangerous than others.
These may include firefighters and police officers. Other occupations that are also considered to be higher risk may include:
- Commercial and private pilots
- Commercial fishermen
- Offshore oil workers
- Flight instructors
- Skydiving instructors
- Civilian contractors
- Electrical power-line installers
- Truck drivers
- Taxicab drivers
- Farmers and ranchers
- Construction and ironworkers
- Coal miners
Options for High Risk Life Insurance Applicants
While those who have risky occupations can still obtain life insurance, it will typically cost more in premium. Carriers will still give you coverage, but they are going to want more every month.
Certainly, one option is to obtain group life insurance – provided that the individual is involved with an employer or an association that offers this type of product. There are, however, several drawbacks to having only a group life insurance policy.
First, size of plan is typically limited. This means that loved ones could be left with not enough money for their needs.
Also, if the person ever leaves the employer or group, they could be left with no life insurance coverage at all – and even worse, if they are deemed as being uninsurable in the future, they may not be covered down the road if the unexpected were to occur. This, too, would leave survivors in a negative financial position.
Another option for those in a high-risk occupation would be to obtain no medical exam or guaranteed acceptance life insurance.You don’t have to go through the hassle of the medical exam, but you still have to answer questions, like:
- Do you have a terminal illness that has a prognosis of fewer than 24 months for you to live?
- Do you smoke or use any form of tobacco?
- Do you have HIV or AIDS-related complex?
Some applications may ask the applicant about his or her job-related duties to determine whether they work in a dangerous occupation. However, on those applications that do not, an individual who works in a more risky occupation may be able to more easily qualify for coverage.
It is important that applicants understand, however, that the premiums on these policies are typically higher than they are on traditionally underwritten policies. T
Also, some guaranteed acceptance life insurance policies will also have longer waiting periods required before the full amount of the death benefit will be paid out to the beneficiary should the insured die within the first few years that the policy is in force.
On the plus side, because there is no underwriting that takes place, and there are very few questions on the application, these policies do not take very long to qualify for and can usually be approved within just a few days – or less. This means that an applicant can have life insurance coverage very quickly if they need it. This is in comparison to a waiting period of several weeks – or possibly even several months – if going through the more traditional channels of applying for life insurance protection.
Most insurance companies are only going to let you purchase around $250,000 worth of insurance protection. For most families, that won’t be nearly enough coverage. There are some companies that will offer as much as $500,000, but those plans are going to be drastically more expensive.
How High Risk Life Insurance Works
In many cases, life insurance companies will tack on an additional charge for an applicant who has a higher risk occupation. This charge is referred to as a “flat extra.” The extra flat charge is an amount that is added to the premium per $1,000 worth of life insurance coverage. Depending on the policy holder’s occupation, the flat extra charge may range between $2 and $5 per month per $1,000 of life insurance coverage.
No insurance company is the same. Therefore, a person who applies to one insurance company may be approved at a Standard policyholder rating at one insurance carrier, yet be approved as a Substandard policyholder at another – even with the very same information on their application for coverage.
Regardless of the job, we always tell our clients to get several quotes and talk to dozens of companies before they make any decisions.
Likewise, not all high-risk occupations are underwritten equally. This is because different occupations present differing levels of risk to an insurer. And, other factors will also have a bearing on whether or not an applicant will be approved as well, such as the individual’s overall health condition and their health history.
Where to Find Life Insurance
Now, let’s show you how to find life insurance, regardless of your job. Even if you have the riskiest job out there, there are options for coverage.
All you have to do is pinpoint the best company based on your job. You can bounce around from company to company, or you can answer those questions on the side, and all of the work will be done for you.
Take 2 minutes to fill out our form and then we will run all of the numbers to locate the cheapest premiums for the plan you need.