Does Your Occupation Affect Life Insurance?

Life insurance is not a generic product with the same cost, level, and type of benefits for each person.

occupations and life cover photoMany factors affect a life insurance policy and occupation is one of them.

People in high-risk professions such as the armed services should expect to pay more money for life insurance because the provider is taking on additional risk by insuring them.

This is not to say that people should tailor their careers to get cheaper life insurance premiums. They should instead understand that they may need to pay more for this cover.

Are You A New Policyholder?

Someone who has never owned life insurance may not be aware of how occupation affects premiums. Using a comparison site like Insurance Hero will quickly show them the premiums charged by different life insurance providers. These rates are based upon several factors including age, smoking status, and career.

Being aware of possible premiums up front makes it easier to budget for this cover. Many individuals, even those in professions considered high risk, realise that life insurance is more affordable than they expected it to be.

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High Risk Occupations

The amount of risk that an individual represents to a life insurance provider is called risk factor. The insurance company does not want to pay out claims unless it has covered itself financially. People who are higher risk factors pay more for cover.

The best way to determine how much is to use a comparison site like Insurance Hero to request quotes from multiple insurance companies in one place. This makes it convenient to compare premiums offered by different providers in order to find the best deal.

To illustrate differences in premiums based on occupation, we provide an example…

One individual works in an office performing financial analysis and does not travel this job. This person represents a low risk factor from a career standpoint and may pay less for life insurance than many other professionals will.

Another individual is a rescue worker who travels over land, sea, and air to help during disasters. Based on occupational risk factor, this person will pay much more for life insurance cover than the financial analyst and other office professionals or single mothers might.

Think about your profession in light of these and determine where it falls on the risk factor scale. Then, request some life insurance quotes to find out whether cover is affordable. There are different types of life cover so if one is too expensive, explore the other.

Whole life insurance is usually more expensive because it lasts for a lifetime so it will always pay out. Term life insurance lasts for a predetermined period and will only pay a benefit if the policyholder dies during the term. Since term life is not guaranteed to pay, it is less expensive.

Even if your occupation equates to higher life insurance premiums, different cover limits and terms are available, making it possible to tailor cover to the budget. Consider all of the different combinations to get to an affordable premium. An Insurance Hero life insurance professional can assist you with this, helping you find the most comprehensive cover at a price that does not exceed your budget.