How to Get Cheap Life Insurance for High-Risk Occupations | Tips & Tricks

 

If you have a high-risk occupation, you may face some challenges and costs when it comes to getting life insurance. A high-risk occupation is one that exposes you to life-threatening situations or hazards, such as fishing, logging, roofing, construction, or mining. These occupations have higher rates of fatal injuries or deaths than other jobs, according to the Bureau of Labor Statistics.

Life insurance is a vital financial protection for people with high-risk occupations and their families. It can help cover your funeral costs, pay off your debts, replace your income, and provide for your loved ones in case you die prematurely. But life insurance companies charge higher rates for people with high-risk occupations because of the increased mortality risk.

So how can you get cheap life insurance for high-risk occupations? Is it even possible to get affordable coverage? The answer is yes, but you need to know some tips and tricks to find the best policy for your needs and budget. In this article, we’ll show you how to:

• Understand what high-risk life insurance is and how it works
• Learn how much high-risk life insurance costs and how to save money
• Find the best life insurance company for high-risk occupations
• Apply for high-risk life insurance and what to expect

What is High-Risk Life Insurance and How Does It Work?

High-risk life insurance is a type of coverage for people who are considered an increased risk to insure because of their occupation or other factors. Your risk level is determined by several factors, such as your health, lifestyle, hobbies, and habits. But your occupation is one of the most important factors that influence your premiums because it affects your life expectancy.

Life insurance companies use different methods and criteria to assess your risk level based on your occupation. Some companies may use a numerical rating system, such as 1 to 6, where 1 is the lowest risk and 6 is the highest risk. Other companies may use a letter grading system, such as A to F, where A is the lowest risk and F is the highest risk.

Some examples of occupations that may be considered high-risk by life insurance companies are:

• Fishing and hunting workers
• Logging workers
• Roofers
• Construction workers
• Mining workers
• Pilots and flight engineers
• Farmers and ranchers
• Firefighters and police officers
• Military personnel

High-risk life insurance works similarly to regular life insurance, except that it has higher premiums and more underwriting requirements. You can choose from different types of policies, such as term or permanent life insurance. Term life insurance covers you for a specific period of time, such as 10, 20, or 30 years. Permanent life insurance covers you for your entire life and has a cash value component.

The underwriting process for high-risk life insurance involves filling out an application form, taking a medical exam, answering questions about your occupation, and waiting for approval. The life insurance company will evaluate your risk level based on your occupation and other factors, such as your age, gender, health, family history, hobbies, and habits.

The premiums for high-risk life insurance are based on your risk level and the type of policy you choose. The higher your risk level, the higher your premiums will be. The type of policy also affects your premiums because term life insurance is cheaper than permanent life insurance.

How Much Does High-Risk Life Insurance Cost and How to Save Money?

The cost of high-risk life insurance varies depending on your occupation and other factors. However, you can expect to pay more than someone with a low-risk occupation for the same type of policy and coverage amount.

To illustrate this point, let’s compare the average monthly rates for high-risk and low-risk occupations for a 20-year term life policy with a $500,000 death benefit for a 40-year-old male in good health:

Occupation	Average Monthly Rate
Low-risk (accountant)	$32
High-risk (roofer)	$64

As you can see, the roofer pays twice as much as the accountant for the same policy. That’s a difference of $32 per month or $384 per year. Over the course of 20 years, that adds up to $7,680 more in premiums.

However, there are some ways to save money and get cheap life insurance for high-risk occupations. Here are some practical tips to lower your life insurance rates as a high-risk applicant:

• Shop around and compare quotes: The best way to save money on high-risk life insurance is to shop around and compare quotes from different insurers before buying a policy. You may find significant differences in rates and features among different companies. You can use online tools or platforms to get quotes from multiple insurers in minutes.
• Choose the right policy type and term length: Another way to save money on high-risk life insurance is to choose the right policy type and term length that match your needs and goals. Term life insurance is cheaper than permanent life insurance because it only covers you for a limited time and has no cash value. You should choose a term length that covers your longest financial obligation, such as paying off your mortgage or sending your kids to college. If you need lifelong coverage, you may consider a permanent policy that has cash value and other benefits, but be prepared to pay more in premiums.
• Improve your health and lifestyle: Another way to save money on high-risk life insurance is to improve your health and lifestyle. Your health is one of the main factors that affect your premiums because it determines your risk of dying sooner than expected. By improving your health indicators, such as blood pressure, cholesterol, weight, and blood sugar, you can lower your risk profile and qualify for better rates. You can also improve your lifestyle by quitting smoking, drinking moderately, exercising regularly, and avoiding risky hobbies or occupations.
• Take advantage of discounts and riders: Another way to save money on high-risk life insurance is to take advantage of any discounts and riders that may be available from your insurer. Some insurers may offer discounts for paying annually instead of monthly, bundling multiple policies, or having a good driving record. Some insurers may also offer riders that can enhance your policy without increasing your cost too much, such as accelerated death benefit rider, waiver of premium rider, disability income rider, or term conversion rider.

How to Find the Best Life Insurance Company for High-Risk Occupations

The best life insurance company for high-risk occupations is the one that specializes in high-risk applicants and has favorable underwriting guidelines. Not all life insurance companies are created equal when it comes to underwriting high-risk occupations. Some insurers are more friendly and flexible than others when it comes to setting rates and offering policies to high-risk applicants.

That’s why it’s crucial to find a life insurance company that understands your occupation and its risks, and offers you the best coverage and value for your money. You may also find more options and features that suit your needs and preferences.

Some factors to consider when choosing a life insurance company for high-risk occupations are:

• Financial strength: You want to choose a company that has a strong financial reputation and rating from agencies such as A.M. Best, Standard & Poor’s, or Moody’s. This indicates the company’s ability to pay claims and honor its obligations.
• Customer service: You want to choose a company that has a high level of customer satisfaction and feedback from sources such as J.D. Power, Better Business Bureau, or Trustpilot. This indicates the company’s quality of service and responsiveness.
• Policy features: You want to choose a company that offers the type of policy and coverage amount that you need and want. You also want to look for any additional benefits or riders that may enhance your policy, such as living benefits, conversion options, or wellness programs.
• Underwriting guidelines: You want to choose a company that has favorable and flexible underwriting criteria for high-risk occupations. You also want to look for any discounts or incentives that may lower your rates, such as group policies, occupational ratings, or preferred risk classes.

Based on our research and criteria, some of the best life insurance companies for high-risk occupations are:

• Prudential: Best overall
• AIG: Runner-up
• Lincoln Financial: Best for no-medical-exam
• Mutual of Omaha: Best for customization
• Transamerica: Best for living benefits

How to Apply for High-Risk Life Insurance and What to Expect

The application process for high-risk life insurance involves filling out an application form, taking a medical exam, answering questions about your occupation, and waiting for approval. The life insurance company will evaluate your risk level based on your occupation and other factors, such as your age, gender, health, family history, hobbies, and habits.

Here are some steps to apply for high-risk life insurance:

• Fill out an application form: You can fill out an online or paper application form with basic information about yourself, such as your name, address, date of birth, social security number, income, beneficiaries, etc. You may also have to provide some details about your occupation, such as the name of your employer, the nature of your work, the frequency and duration of exposure to hazards, etc.
• Take a medical exam: You may have to take a medical exam as part of the underwriting process. The exam usually involves a physical check-up, blood test, urine test, height and weight measurement, blood pressure reading, etc. The exam may be done at your home or office by a paramedical professional at no cost to you.
• Answer questions about your occupation: You may have to answer some questions about your occupation during the application process or the medical exam. The questions may vary depending on your occupation and the insurer’s underwriting guidelines. Some examples of questions are:

• How long have you been working in your occupation?

• What are the main duties and responsibilities of your occupation?

• How often and how long are you exposed to hazards or dangers in your occupation?

• What kind of protective equipment or safety measures do you use in your occupation?

• Have you ever been injured or disabled because of your occupation?

• Wait for approval: After you submit your application and complete the medical exam, you have to wait for the life insurance company to review your information and make a decision. The approval process can take anywhere from a few days to a few weeks, depending on the insurer and your risk level. You may receive one of the following outcomes:

  • Approved: You are accepted for coverage and offered a policy with a specific premium rate and risk class.
  • Declined: You are rejected for coverage and not offered a policy.
  • Postponed: You are asked to wait for a certain period of time before applying again, usually because of a recent health issue or change in occupation.
  • Rated: You are accepted for coverage but offered a policy with a higher premium rate and risk class than normal, usually because of a high-risk occupation or health condition.

Conclusion

Having a high-risk occupation can make it harder and more expensive to get life insurance. But it doesn’t mean you can’t get the coverage you need and deserve. By following the tips in this article, you can:

• Understand what high-risk life insurance is and how it works
• Learn how much high-risk life insurance costs and how to save money
• Find the best life insurance company for high-risk occupations
• Apply for high-risk life insurance and what to expect

Don’t let your occupation stop you from getting the protection you need for yourself and your family. Start comparing quotes from multiple insurers today and apply for a policy that fits your needs and budget.