Life Insurance For High Risk Occupations.
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When looking for affordable life insurance for someone in a high-risk occupation, you will find that your choices are more limited. There are companies out there willing to insure you, but you need to find an insurer specializing in coverage for your riskier-than-average profession if you are to get a good rate.
Below, we go over the basics on high-risk occupation life insurance so that you can shop more wisely for your best obtainable policy.
Any occupation that significantly increases the chances of an early or accidental death is viewed by insurance companies as “risky.” While it is true that every job, and life in general, carries a certain amount of unavoidable risk, insurers operate on the basis of statistical averages and risk factors in order to keep themselves solvent for the long-term.
Thus, while a higher-risk job may bring with it higher pay, it will also require higher premiums on life insurance policies.
If you are in good health, don’t smoke or drink, are still in your 30’s or 40’s, and do not engage in any other activities insurers view as risky, you may still be able to find reasonable insurance rates despite your high-risk occupation. It also depends on the specific occupation in question since each has its own level of risk.
Some of the most common high-risk occupations that could increase your insurance premiums or otherwise affect the terms of your policy include:
What To Expect During the Application Process
First, you should expect to usually (not always, depends on occupation) pay a “flat extra” on top of the ordinary rate. This is an additional charge per extra $1,000 of coverage. It usually ranges from two to five dollars, which for a $100,000 policy, could reach as high as $50 more per month. This underscores the importance of shopping around for the best deal when it comes to high-risk occupation insurance.
Second, you will have to answer more detailed questions about your occupation than the average insurance applicant.
While the data insurers demand will vary from company to company and from occupation to occupation, generally expect the following areas of inquiry:
You may have to settle for less coverage to make life insurance affordable for some high-risk professions, but the benefits must meet your needs or the policy will not be worth having. Sometimes, you will have to accept various exclusions and restrictions in order to obtain a policy.
If the policy is still adequate with the exclusions, fine. If not, you may need to buy two policies: a traditional life insurance policy with exclusions for “extraordinary risks” and a complementary policy that covers nothing but the risk areas excluded in the other policy. This “combo” approach often can save you money.
One final consideration—ask your employer if they offer any insurance options to their employees. If the company you work for has a group life policy, you may be able to save. Because it is a high-risk company, you can expect the rates to still be higher than with other employer-based policies, but it is at least worth checking into.
You may not be able to transfer the policy if you switch jobs, but in that case, you might no longer need a high-risk occupation insurance policy. Be aware that group policies do not always provide adequate quantity of coverage. In that case, you will want to look into buying extra coverage (if permitted), supplementing the group policy, or opting out and buying something else.
Finding good insurance coverage when you work at a high-risk job is not always easy, but it is almost always possible. With a little time and effort and some help from an expert agent, you can probably find a policy that is affordable, provides adequate protection, and that you qualify for.
The application process may be a more stringent, and the terms may include flat extras and/or exclusions, but independent insurance brokers know how to find you your best deal. They can search dozens of the best insurers and compare rates based on your specific criteria.
There is no need to give up on finding worthwhile insurance for your high-risk profession. It is out there somewhere, and there are professionals who know how to match you to your best possible policy.
The best way to find the right policy if you are in a high risk occupation is to compare quotes.
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