Jobs that Affect Life Insurance
By Dermound Becker
Special to USInsurance.com
Having a life insurance policy is an important part of planning for one’s future as well as something that everybody needs and, in fact, should have. For example, if you or a loved one were to pass away, an insurance policy would cover the costs of a funeral and any outstanding bills that still would have to be paid. For married couples, a life insurance policy would pay out a sum of money which would allow the surviving spouse to continue living without financial stress.
Life insurance companies all work in exactly the same way when they calculate the risk of any potential client wishing to purchase one of their policies. Health issues which may shorten one’s life have to be disclosed and medical tests undertaken in order for the insurer to calculate the monthly payment amount and, of course, certain job descriptions will also have an effect on the calculation of risk to the insurer.
When considering the purchase of a life insurance policy, it is a given that having a job which entails a certain amount of danger, or if such job is subject to specific hazards, the monthly payments will be raised. After all, insurance companies are out to make as big a profit as possible (like all businesses) so, if it is calculated that the life insurance policy will not run its full term and benefits from the policy will have to be paid out, they will make the monthly payment higher in order to balance their books, so to speak.
Examples of jobs which insurance companies consider to be high risk include fire fighters, employees of the police service, construction workers, skyscraper window cleaners, scuba divers and pilots. These workers run a much higher risk of being injured or killed in their day-to-day work activities than, say, a desk bound clerk. Nonetheless, they are still able to find life insurance policies, albeit at higher monthly payments.
Some types of employment are considered to be extremely high risk and it is very difficult to find a life insurance policy if you are employed in these sectors, although some companies will offer what is called a ‘rated’ policy. Workers who come into contact with dangerous materials, such as those in a nuclear reactor or plant, miners and workers who dig tunnels; and zoo keepers and circus performers like trapeze artists and animal handlers all fall into this category.
There are a few modes of employment that insurance companies will deny out of hand when it comes to life insurance. Some of these forms of employment are those which come into contact with asbestos or explosive materials of all kinds and those people who implode buildings with the use of dynamite; and helicopter pilots.
The bottom line when it comes down to buying a life insurance policy is that if you are employed in a relatively ‘safe’ form of occupation, your chances of getting a fairly prices policy are good; but if your work involves danger of any kind, the cost of such policy will rise exponentially and be linked to an estimation of your life expectancy.
Insurance Guide
Auto Insurance
Home Insurance
Life Insurance
Renters Insurance