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In this article, I’m going to tell you about all the ways a miner may qualify for life insurance and get a quality program in place to take care of their family, replace their income, and pay off debts if they happen to die earlier than expected.
Most likely you’re here today because you’re either a miner yourself or you’re the spouse of a miner. Perhaps you have been motivated by either some sort of life event, or have simply become aware of the necessity of miners carrying life insurance to protect their family.
As you know, given the nature of their profession, miners experience much more risk than the average individual. That’s why it’s important for miners to protect their family with a life insurance plan. If you applied for insurance in the past and due to the nature of your profession were turned down or if you are looking to see if there are alternative ways to buy life insurance, you’ve come to the right place.
We will discuss the factors surrounding your ability to get quality life insurance and how we can account for those to give you the best overall pricing. We’re going to talk about the reasons why miners buy life insurance, then discuss the types of life insurance available to miners.
We will also talk about what’s called a flat extra and why you may have to consider planning for this kind of product. And finally we’ll discuss whether or not you should consider taking an exam in lieu of applying for life insurance coverage as well as what factors have an impact on your level of insurability.
The topics we’ll discuss are as follows:
- Four factors to consider
- Why should miners buy life insurance?
- Flat extras
- What types of life insurance coverage are available for miners?
- Which insurance is right for you?
- Should you take an exam for your life insurance?
Four factors to consider
For miners, there are primarily four different aspects associated with your job that you will come into play when you apply for life insurance. These factors will affect not only if you qualify, but also the premium you will pay. These factors include:
- Surface vs underground mining
- Miners vs related mining profession
Surface vs underground mining
Is you’re mining surface oriented or underground? Generally speaking, if you are a miner and your work primarily involves surface mining, you’re going to have an easier time qualifying for life insurance at a more competitive rate. The reason for this is that there are fewer risk factors for those that mine above ground.
If you are an underground miner or work in a mine pit, there are more risk factors involved. Thus life insurance companies most likely will offer your coverage with a rate up or some sort of flat extra in addition to the original fee. We’ll talk about that more later on.
When you talk to your life insurance agent at Buy Life Insurance for Burial or another company it’s important to identify the specific nature of your work and the type of mining that you do because it will impact what kind of pricing you can expect to get.
Miner vs related mining profession
Are you a miner or are you in a related mining profession? What I mean by that is are you physically working in the mine as a miner or do you work in the mining industry under a different profession? Maybe you’re a scientist or an engineer or a technician, and you don’t do the actual mining that a miner does, but you’re involved in some way with the process of mining. If that describes you, then most likely you will not experience any sort of rate up or cost increase that a direct miner would pay.
Like all people who apply for life insurance, your health will be a major component of the application process and will determine your coverage. The most common health questions that are asked on a life insurance application for a miner include the following:
- Lung disease issues such as CLPD, emphysema, black lung?
- Heart disease, such as heart attacks or strokes? Have you had a bypass?
- Diabetes, type one or type two? Are you on a pill or do you use insulin? Are there complications?
- History of cancer
- Liver problems, hepatitis, cirrhosis?
- Kidney problems or insufficiency? Are you on dialysis?
- Medication usage?
- Neurological problems such as lupus, multiple sclerosis, Parkinson’s?
- Mental health issues such as PTSD, anxiety, bipolar, depression, schizophrenia?
- Have you been hospitalized in the past five years for any reason?
- Have you had any surgeries in the past five years for any reason?
- What’s your height and weight?
- What kind of lifestyle do you lead?
- Do you have any DUI’s, traffic violations?
All of these aspects will be considered as a component of whether or not you’ll get preferred standard or substandard ratings.
Age is always a factor to be considered in a life insurance application. Generally the older you are, the more likely you’ll pay more. How do you get around that fact? My recommendation is to work with a broker. While you can’t overcome your age with a life insurance application, you can work with a broker that’s able to shop the most competitive carriers to see which of the companies will provide the best overall rate for a miner looking for life insurance coverage.
The reason this is important is because life insurance companies each design their product differently. Some are more competitively priced than others, and the ultimate goal as a miner is to find out which life insurance company is going to give you the best overall package for life insurance as far as coverage and rates go.
Also, if you work with a local, small insurance company it’s likely they won’t have the experience or access to carriers like we do at Buy Life Insurance for Burial. We provide our clients with competitive rates thanks to our ability to compare the most competitive carriers to see who is going to give you the best overall price and coverage. It’s highly likely you’ll get a better overall deal than if you went with a smaller agent.
Why should miners buy life insurance?
There’s several factors or reasons why miners buy life insurance. The first reason is that they want to protect their family. Simply put, life insurance is an act of love. I know, it’s a strange gift if you think about it, right? You pay on a PPO for something in which you really will never see the benefit of because you will be dead and gone.
It takes a level of trust to buy a life insurance policy along with a level of love and appreciation. It’s hard to buy something when you don’t see immediate gratification, especially in today’s society. So one of the main reasons why people buy life insurance is because they don’t want to leave their family with any financial obligations. Or they don’t want to dramatically change their family’s lifestyle in a negative way once they are gone.
While I can’t replace you, I can replace your income to a substantial degree and allow your family to live a somewhat normal life economically, even though you’re gone and out of the picture. Another reason why it’s important to buy life insurance is that you probably have debts like mortgages, credit cards and the like. You want to be sure those obligations are paid so you’re surviving family members don’t have to be responsible for payments. A life insurance plan is a perfect opportunity to do that.
You take a life insurance plan out. Your family is the beneficiary and in exchange, upon your passing, your family takes a portion of that death benefit, the payoff, to cover the mortgage, pay off any extra obligations, and otherwise become financially free from any sort of financial debt obligations.
Under some circumstances, certain miners will experience what’s called a flat extra. Essentially flat extra is a secondary fee on top of the premium to account for the nature of their job. A flat extra works like this:
Let’s say you’re qualified for a life insurance product that is $100,000 coverage for $1,000 a year. However, the company comes back and states in order for your plan to be put into effect, you have to pay a flat extra, which is $5 for every $1,000 in coverage.
If you do the math, that means there’s an additional $500 fee on top of the $1,000 premium, bringing your total out of pocket expense to $1,500 annually.
So essentially this additional charge to your life insurance coverage gives accommodation to the nature of the work that you do.
Exclusionary coverage isn’t something I necessarily recommend for a miner. There are circumstances with some companies where you can submit an application and request an exclusionary right to exclude coverage if you were to die on the job as a miner. This will eliminate the flat extra, but it will not cover you if you die on the job, which is where most of us spend a great deal of our time.
What types of life insurance coverage are available for miners?
There are three different kinds of life insurance programs available depending on what your life insurance goals are. Let’s talk about all three.
Term insurance is temporary life insurance designed to offer level premiums that will only last 10, 20, or 30 years. People most often buy term insurance because it’s the most affordable option for life insurance that provides the most amount of protection. It also matches the most common goals people have when they buy life insurance, which include replacing an income and to pay off any mortgage or debt obligations.
Term Life Insurance Coverage – 10 Year Term – $100,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $250,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $500,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $1,000,000 in Coverage
Buy Life Insurance for Burial specializes in term life insurance and can help you find the right term life insurance to meet your specific goals.
Universal life insurance
Universal life insurance is usually designed for supplemental life insurance retirement plans, income replacement plans, or mortgage protection payment plans for those that are a bit older. Universal life plans can be permanent protection, meaning they don’t cancel because of age or health as long as they are appropriately managed on an annual to semiannual basis.
Many people have the unfortunately experience of diverse life plans that go up in price unexpectedly. Many people retire with these plans thinking they will have them in retirement but don’t, only to find themselves in a very bad position.
It’s important to work with someone who understands how to create a universal life plan appropriately in order to ensure the plan can meet your long term goals.
$50 a Month – Guaranteed Universal Life Insurance
$100 a Month – Guaranteed Universal Life Insurance
$150 a Month – Guaranteed Universal Life Insurance
Whole Life Insurance
Whole life insurance is designed to offer permanent protection no matter when or how the individual dies. Insurance plans are used primarily to pay for final expenses such as burial or cremation related costs. Whole life insurance can also replace income when a couple knows they need to have a lump sum to cover a death benefit payout. It avoids the risks that comes with term insurance policies where you can possibly outlive the policy. And it avoids the uncertainty of rates that comes with universal insurance plans.
Rates For $10,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
$150,000 Whole Life Insurance, Life Pay
$250,000 Whole Life Insurance, Life Pay
Which insurance is right for you?
Should you take an exam for your life insurance?
I’m of the persuasion as a life insurance professional that if you’re in good shape health wise, it’s a good idea to do an exam based life insurance application. The reason is because healthy people who get approved for preferred rates using an exam typically pay a much smaller premium. I can tell you from personal experience, had I not taken an exam when I personally took out life insurance, I would be paying approximately $500 to $1,000 more a year.
Now, why would I want to do that for the next 30 years on my term insurance plan when I could get a lower rate simply by doing a one time exam? Exams are usually pretty straightforward. Blood is withdrawn. Health history, questionnaires completed by the doctor, and vital signs are taken and that’s usually it.
The exam takes no more than 30 minutes to accomplish and can be done in the comfort of your own home at a time that’s convenient for you. If you’re flat against an exam or if it wouldn’t make sense because your health’s not the greatest, we do recommend non-medical policies and simplified issue policies.
These types of policies just draw upon your existing health history to determine your insureability and may be a good idea if getting an exam doesn’t make sense because of your health history or if you don’t want to go through the process of an exam.