When people purchase life insurance, it is usually necessary for the applicant to fill out information regarding his or her health and other related information. Those who have an adverse health condition are often charged more in premium for their coverage, as they pose more of a risk to the life insurance company.
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 considered to be more dangerous or risky 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
- Taxi cab 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. This is because these individuals pose more of a risk to the life insurance carrier in terms of filing a potential claim.
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, the amount of coverage that a person can get with group coverage is typically limited. This means that loved ones could be left with not enough money for their needs.
In addition, 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. With this type of coverage, there is no medical exam required for coverage to be accepted. In addition, there are only a few questions that are asked on the application for coverage. These will typically only include questions such as the following:
Do you have a terminal illness that has a prognosis of less than 24 months for you to live?
Do you have HIV or AIDS related complex?
Some applications may ask the applicant about his or her job-related duties in order 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. This is in order to compensate for the additional risk that the life insurance company is taking on.
In addition, 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.
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 flat extra 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.
It is important to note that not all life insurance carriers will underwrite applicants for life insurance in an identical manner. 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. With this in mind, it is always a good idea to apply with more than just one insurer – especially if you work in a high-risk occupation.
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
If you have an occupation that is considered to be high risk, you can still find life insurance. However, you may need to go about obtaining your coverage via a company or an agency that has access to multiple life insurance carriers. That way, you will not be subject to just one insurance company’s method of underwriting. In addition, by being able to “shop” your application for coverage, you will be able to compare numerous different plans, benefits, and premium quotes in order to determine which one fits the best with your specific situation and budget.
When doing so, we can help. We have access to many of the top life insurers in the marketplace today – and we can get you all of the information that you need in order to make a more informed decision on buying high risk life insurance. We can get you this information quickly, easily, and conveniently – all from your home computer, and without the need to meet in person with a life insurance agent. When you’re ready to begin the comparison process, all you need to do is fill out the form on this page.
Should you have any additional questions along the way, please feel free to contact us directly. Our experts will be happy to walk you through the life insurance buying process, step-by-step. We can be reached by phone, toll-free, by calling 888-229-7522.
We understand that the purchase of life insurance can be somewhat confusing. There is a lot of information to learn – and a number of important details. That’s why we want to ensure that you have all of the information that you need before you make this important buying decision. So, contact us today – we’re here to help.