Does My Career and Hobbies Affect Life Insurance Rates?

career and hobbies affect life insurance rates

Life insurance firms have their own rules and regulations. Most of the time, they will charge the insured with a higher premium if they engage in specific ventures that the firm finds dangerous or can cause untimely death. Worse case is they will find the person unqualified for an insurance policy. Extreme sports like snowboarding, skydiving, and cliff jumping are some of the activities that will are a little too risky for some insurance firms to cover.

If you enjoy action sports and other death-defying activities, you can anticipate that life insurance firms will assign you with more costly rates than the standard applicant. If you are not knowledgeable about the life insurance world, you might think that the company is charging you way too much, just like the 25-year old Daniel Henry, a client who was upset with his rates. 

Daniel Henry lives in Ohio and pays nine times higher monthly premiums for his occasional mountain climbing. A $180 payment costs a lot, and we understand his sentiments.

So Why Do Dangerous Ventures Make My Life Insurance Rates Go Up So Much?

The math of insurance firms is straightforward: every time you engage in a dangerous venture, the more prone you are to an untimely death. The sooner you die, the lesser you pay for life insurance.

The math applies not only with risky activities but also with medical conditions such as hypertension, heart ailments, diabetes, and family background with cancer.

So which jobs, pastimes, and recreation make you appear high-risk for the life insurance firms? How can you find the cheapest premium even when you are one of the risky applicants?

Why Risky occupations affect my life insurance rates

Each insurance firm has its own set of standards when assessing the risk for different jobs. The majority of companies pick ten high-risk jobs based on the statistics of mortality rates among its employees.

The most dangerous jobs this year are the following:

  1. Lumberjack
  • Danger: Wild animals, collapsing trees, strong breeze, hacksaw
  • Death rate: 91.3 out of 100,000 workers
  1. Commercial fisherman
  • Danger: Direct sunlight, harsh weather, mishaps due to insufficient sleep
  • Death rate: 75 out of 100,000 workers
  1. Airman/air mechanic
  • Danger: Exploratory engine collapse, substance contact, incidents due to insufficient sleep, dangerous flying conduct
  • Death rate: 50.6 out of 100,000 workers
  1. Roof Mechanic
  • Danger: Falling incidents, building-linked harm
  • Death rate: 38.7 out of 100,000 workers
  1. Agriculturist
  • Danger: A lot similar to lumberjack risks, another top fatality risk among agriculturists: tumbled tractor
  • Death rate: 21.8 out of 100,000 workers
  1. Miner
  • Danger: Quarry caved in, a lot more
  • Death rate: 26.9 out of 100,000 workers
  1. Recyclable Material Collector
  • Danger: Incidents due to large, hazardous apparatus and leaping across automobiles in motion, substance contact
  • Death rate: 33 out of 100,000 workers
  1. Common Carrier (and other driving-based employees)
  • Danger: Incidents with vehicles and insufficient sleep 
  • Death rate: 22 out of 100,000 workers
  1. Electric Line Worker
  • Danger: Electric shock, falling incidents
  • Death rate: 21.5 out of 100,000 workers
  1. Construction worker
  • Danger: Electric shock, platform caved in
  • Death rate: 17.7 out of 100,000 workers

You probably thought of other positions that should make a list, such as soldiers or firefighters, which are the first to come to mind when talking about high-risk jobs. Most of these occupations are not deemed dangerous, but specific appointments in those departments are like the SWAT team and smokejumpers.

How Dangerous Pastimes May Affect My Life Insurance Rates

You can work on the safest career you can think of; a desk job inside a guarded building, but if you take part in daredevil hobbies in your leisure time, you can anticipate more expensive life insurance rates.

Which extracurricular activities may draw costly charges?

The founder of AnnualMedicalReport.com, Joel Winston, laid out the approximated additional charge for annual payments linked with the following dangerous activities:

  • Parachuting: $2,500 (or absolute application rejection)
  • Deep-sea diving: $2,500
  • Hang gliding: $2,000
  • Rock climbing: $1,500
  • Motorcycle riding: $1,000
  • Recreational boating/fishing: $750
  • Hunting: $500

As mentioned, insurance companies have different methods of assessing the risk of a hobby. In general, you can expect additional pay for any extremely adventurous activity you participate in.

If Career and Hobbies Affect Life Insurance Rates? How Do Underwriters Know Whether I Excluded my Dangerous Hobby During the Application?

Life insurance companies implement ruling against “material misrepresentation” or the act of intentionally lying or excluding facts about you. Punishments can be serious, including complete policy termination, cut back on your death benefit, and denial of application should your lie get discovered right away. If the insurance firm found out about the lie late, they might charge you with higher pay. The worst case is if they learned about the false statement after you died: they may not disburse at all.

Insurance companies inspect social media accounts of you and your close friends. They check whether you have been hospitalized due to injuries. Companies are more critical in reviewing your data when your policy is of larger value.

How Life Insurance Firms Assess Risk

Underwriters do not evaluate the danger of a hobby just because it showed up on your data. They put various considerations at play, for instance, how often you do the hobby.

The danger assessment asks more questions about the activity. For example, “Are you a professional scuba diver?”, “Do you charge professional fees?”. In this case, insurance providers may give you an extra flat premium or a $2.50 to $5 surcharge per $1,000 value in your monthly payments.

How To Plan Your Way in The Life Insurance Deals When You Participate in Risky Ventures

One good thing about insurance firms is that they are autonomous in their rules toward risk evaluations. Each company has a different plan to offer for those who are in high-risk careers and pastimes, considering that they do not have a chronic illness or other significant risks.

How can one find the plan that suits them best? We suggest speaking with an independent life insurance business.

Collaborate with independent risk insurance agencies

One way you can find the right policy for you is to check out different plans and firms that suit your high-risk engagements. However, some people can help you get paired with the perfect plan: independent life insurance businesses.

Consider the qualities below when browsing for businesses:

  • Small-scale: They can provide personalized help, tailored to your needs.
  • Specialized: They built connections with numerous risk insurance firms, and they can pick the one suitable for you.

Meet the team

About Coach B.

After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.

In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.

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