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What Are Occupational Hazards in Life Insurance?
<lingo>When determining the cost of life insurance for any person, companies look at risk factors that make it more likely that you could end up passing away earlier. One of the key areas they look at are occupational hazards. This term relates to the types of risks you face while on the job or working for your company. The type of risks range widely but are typically related to the risks associated with serious injury or illness due to work-related exposure. This is just one component of the picture in determining individual risk.</lingo>
Occupational Hazards Briefly and Clearly Explained
Life insurance companies base premiums and access to policies based on the hazards a person faces in his or her life. Occupational hazards are those relating specifically to a person’s work risks. The riskier the job they do is, the higher the costs associated with their life insurance policy.
When it comes to defining occupational hazards, insurance companies rate positions independent of the person. For example, those who work in construction are at a higher risk of being hurt or dying on the job than those who work in an office building. In this case, if you hold a job like this, your risks are higher and, as a result, your costs are higher.
<twitter>When determining the cost of life insurance for any person, companies look at risk factors that make it more likely that you could end up passing away earlier. One of the key areas they look at are occupational hazards. This term relates to the types of risks you face while on the job or working for your company.</twitter>
Many life insurance applications require you to disclose this information. If you fail to do so, they may cancel your policy, or it may not be applicable if your family needs to file a claim on it later. That is why it is critical to be open about your occupation.
Key jobs considered high risk for life insurance coverage include working in the logging industry, working in the fishing industry, being a pilot, steel and iron working, roofers, other construction jobs, and farmers. If you work in one of these or other jobs where the risk of serious injury is higher, be sure your life insurance policy recognizes that. It does not mean you cannot get coverage, but it may mean that your coverage is a bit more expensive than if you worked in a safer job.
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