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In This Article I’m Going To Explain In Detail What Factors You Should Be Aware Of If You Have A Dangerous Job Or Hazardous Occupation And Are Looking For Life Insurance Coverage
Perhaps you are on this web page today because you worry that you may not qualify for life insurance because of your occupation and the risk it involves. You may have tried to apply for life insurance in the past and have been declined or rated up so high that it was impossible to consider purchasing coverage.
If this describes your current situation, then hopefully you’ll find this article helpful in explaining the factors you should be aware of when you apply for life insurance with a dangerous job.
We’ll also discuss how to secure the lowest premiums and the most coverage for what you can afford.
Here’s An Overview Of Today’s Topics:
- Why Does My Job Affect My Life Insurance Rates?
- Work With A Broker
- What About Insurance Through Work?
- What Life Insurance Options Are Available For High Risk Professions?
- Options If You Are Declined For Coverage
- Burial Insurance Rates, Age 40 to 90*
Why does my job affect my life insurance rates?
Most likely if you are involved in some sort of hazardous occupation, it is extremely likely that life insurance underwriters will take note on your application for life insurance. If you’re wondering if your job is considered hazardous, ask yourself the following questions:
Does my job have a higher than normal risk for death, accident, or illness than other occupations? Am I put in harms way on a regular basis?
If you work a risky job, you probably answered yes to both. Most likely that means there will be some sort of impact on your life insurance coverage due to your hazardous profession. However, there are some key components that you want to keep in mind in order to lower that premium as low as possible in order to give you the most coverage for the least amount.
Let’s talk about what those factors are because they can make a big difference on your eligibility for coverage at an affordable rate.
Work with a broker
It’s important to work with a broker here at Buy Life Insurance for Burial. We specialize in working with a variety of different life insurance companies that give us a lot of coverage options. One of the reasons we do this is because many of our clients have had health history issues in the past.
Many companies look down on certain health ailments, while others are completely fine with certain health problems. If you have health issues, you don’t want to get a coverage plan that costs more or provides inadequate coverage when there are better options out there. Simply put, that’s not fair to you, the client.
The second reason we offer coverage from many different companies is because of your circumstances. There are non-health factors that have an immediate impact on eligibility for life insurance coverage. They can be things such as hobbies, age, as well as hazardous occupations.
Life insurance companies each look at different hazardous occupations differently, just like they do with health history. Why is this the case? Because certain life insurance underwriting teams have more comfort and familiarity with certain occupations than other companies do.
Some companies don’t want to underwrite and insure risks for different hazardous occupations that they just don’t have the experience in dealing with. While other companies maybe have a history of dealing with a certain occupation, hobby, or age group, and feel more comfortable insuring those risks than others.
This is why I’m a big believer that as a consumer, you should deal directly with brokers when it comes to life insurance decisions. Otherwise, you’re unfairly curtailing the availability of best suited options for your particular circumstance. It’s important to understand that life insurance companies look at you individually and look at a set of factors to determine your eligibility.
For example, life insurance companies are going to consider your past health history. Most commonly insurance underwriters are going to look at the following circumstances in detail over the past 5 to 10 years.
Do you have a history of…
- Lung disease such as chronic obstructive pulmonary disorder
- Heart issues such as heart attack, stroke, stents, bypasses
- Liver disease
- Kidney disease, dialysis, kidney insufficiency
- Diabetes (type one, type two?), insulin use, diabetic complications
- Neurological problems like Lupus or multiple sclerosis
- Mental health conditions such as depression, bipolar disorder, PTSD, schizophrenia
Of course, they will also ask questions about your height and weight, your age, if you smoke, as well as your hazardous occupation. This complete collection of various elements all have a direct impact on what price you will ultimately pay for your life insurance.
However, there is another added factor that some people in certain hazardous occupations will experience. The flat extra. The flat extra is a premium device used by life insurance companies to accommodate for certain risky hobbies. Simply put, a flat extra is an additional price added to your premium.
Let’s give you a case example to better explain what this means and how this may impact you. Let’s say you qualify for $100,000 in coverage for $500 a year in premium payments because of your hazardous occupation. The life insurance company deems that your risk is going to be $5 for every $1,000 in coverage.
If you do the math, that adds an additional $500 for $100,000 in life insurance coverage a year, $500 plus $500 means your total out of pocket expense for life insurance coverage is $1,000.
The idea of paying more money may not be appealing, but it is one of the few options that we may have to get coverage in place, depending on how extreme or hazardous your job truly is. Understand that if you do get a flat extra in the process of figuring out coverage options we will shop other companies here at Buy Life Insurance for Burial to see if there are other options that may be better.
In some rare circumstances, you may be granted the option of excluding your life insurance coverage from covering you if you die from any thing related to your job. This option is important to keep in mind if a flat extra comes back at some enormously high price that seems out of line with what you’re able to afford or pay.
What about insurance through work?
If your original option for coverage doesn’t pan out like you would like, you may start pondering the idea of getting life insurance through work.
Here’s the problem with group life insurance and why it simply isn’t the best option for coverage. Many group life insurance plans only cover your wage and worst case scenarios up to a factor of 3 to 5 times your annual income.
That means if you make $50,000 a year, you may only have $50,000 in coverage. Best case scenario you might have up to $250,000. While that may sound like a lot of coverage, here lies the problem. Most financial gurus agree that you should have at least 10 times your annual income in life insurance coverage to adequately take care of all of the following financial requirements:
- Income replacement to provide support to your surviving spouse and/or kids
- College savings fund or retirement fund
- Regular expenses such as credit card bills, car payments, and school activities if you have children
- Mortgage payments
If all you have is $50,000 to $150,000, you’ll find that you’ll blow through that money quicker than you can imagine, especially if you have bigger obligations like a mortgage. Your kids and spouse will have to figure out a new way to survive on much less of an income than they used to have and might have to dramatically alter their lifestyle to get by.
Another thing to be aware of when it comes to getting coverage through work is that many times work insurance coverage ends when you quit, become disabled or retire. So many of these plans are no good in the long term when you really need them most.
What life insurance options are available for high risk professions?
There are typically two types of life insurance options available for those that are in high risk jobs. What follows is a brief explanation of both kinds with a short pro versus con analysis to help you better understand what type of life insurance may best suit you.
Term Life Insurance
Term life insurance is temporary life insurance. It lasts for a short period of time, usually between 10, 20 and 30 years, provides a lump some benefit to the beneficiary of your choice, and usually has premiums that remain level throughout the entirety of the plan.
There is no cash value part of the plan and if you outlive the coverage, it’s likely it will cancel or go so high in price that it is unreasonable to keep.
People purchase term insurance for temporary obligations such as saving for retirement or taking care of debts, such as paying off a mortgage, if they die earlier than expected. The vast majority of people in hazardous professions select term insurance because it also provides the least amount of premium commitment for the most amount of coverage time when compared to permanent life insurance.
Permanent Life Insurance
Permanent life insurance generally does not cancel at a future date and has level premiums that do not escalate to a higher level. People purchase permanent insurance plans to cover permanent obligations.
The most common permanent obligations we see are people who are worried about paying for final expenses such as burial and cremation expenses, as well as covering income replacements when a surviving spouse will not inherit your pension or retirement.
The biggest downside to a permanent life insurance plan is for the amount of coverage you receive, it costs 5 to 10 times more than what you would get through term insurance. However, you’re buying a plan that doesn’t cancel either, so most people buy it in those circumstances where they know they absolutely have to have this money no matter when they pass away.
Options if you are declined for coverage
If you’ve been declined for coverage because of your hazardous occupation, there are some last ditch options you might consider to get coverage, the first of which is called simplified issue.
Whole Life Insurance Simplified Issue
Whole life insurance is designed to ask minimal health related questions. In my experience dealing with simplified issue products, there are very few question involved as to what your occupation is, so what you’ll find is that it’s much easier to qualify for whole life coverage where you might otherwise be declined for something like a term product.
If for some reason you have health problems in combination with your risky occupation, getting life insurance can be a challenge. The absolute last choice you might consider is what’s called guaranteed acceptance or guaranteed issue life insurance.
No health or occupational questions are asked. However, you are not covered for natural death in the first two years, although you are covered for accidental death immediately from the first day of coverage.
I will stress this as a last ditch effort. I do not recommend this product the vast majority of the time because of its restrictions, but I do want to make this option available to you if you have struggled to find coverage and have exhausted all other options.
Burial Insurance Rates, Age 40 to 90*
Rates For $5,000 In Burial Insurance
Rates For $10,000 In Burial Insurance
Rates For $15,000 In Burial Insurance
Rates For $20,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
*Burial insurance premiums are subject to underwriting, based on rates as of 8/20/2018, from state-regulated life insurance companies offering final expense burial whole life insurance protection. Understand that in order to potentially qualify, you must submit an application to see if you’re eligible. Rates are subject to change. Give Buy Life Insurance For Burial a call at 888-626-0439 now to see what program you may qualify for.
Term Life Insurance Rates, Age 25 to 75*
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
*Insurance premiums are subject to underwriting, based on rates as of 8/20/2018, from state-regulated life insurance companies offering final expense burial whole life insurance protection. Understand that in order to potentially qualify, you must submit an application to see if you’re eligible. Rates are subject to change. Give Buy Life Insurance for Burial a call at 888-626-0439 now to see what program you may qualify for.