Did you know that your profession could affect the premiums you pay for life insurance? And one of the most risky occupations is construction workers.
This is why life insurance for construction workers requires special care. It is not that you are rejected for a policy, but rather that you are likely to pay a higher premium than someone in a less risky occupation will do.
But you can be sure that your profession as a construction worker is far from the only factor that the insurance company will take into account when determining your premium.
It's just one of many, but you need to be aware of that when applying for coverage.
Why is life insurance for construction workers considered high risk?
Due to the nature of the work itself, construction workers are considered one of the most risky occupations in general, including by the insurance industry.
According to the Bureau of Labor Statistics, the 1
Note that "first leader of construction and extraction workers" is number nine on the list of 10. It shows a mortality rate of just over 20 per 100,000 full-time equivalents of valuable workers in 2018.
Perhaps the greatest individual risk for a construction worker is the potential for deaths from falls. This is a risk because the work is often carried out on buildings that are two storeys or more. It is a particularly big risk if you work on buildings that are three stories or more, but deaths are often more about how a person falls than the actual distance.
Apart from falls, there is also the risk of death from heavy equipment such as power tools, as well as electrocution. After all, construction involves working with electrical wiring and other devices, even if you are not an electrician. Still other possibilities are explosions and fires. These can be the result of gas leaks or electrical fires.
Given all the possibilities, construction workers are definitely facing greater potential dangers than people in other professions. Insurance companies will of course take this into account when insuring your life insurance application.
Why life insurance for construction workers may be even more important than other professions
One of the most important reasons for having your own personal life insurance policy as a construction worker is that the occupation does not universally provide employer-sponsored life insurance coverage.
While coverage may be available if you work through a union, union membership may not be available if you work in a non-union state. It will leave you completely alone for life insurance.
But even if you have work-related life insurance, which is usually provided by the unions, the death benefit will be limited. At most, you will be able to get $ 200,000 coverage. And there may be limits to how much of what your recipients will collect. For example, while they may receive the full death benefit if you die at work, it may be a reduced amount if you die from the job.
But even at $ 200,000, you can still be severely underinsured. Financial advisers recommend that life insurance is sufficient to cover at least 10 times your annual salary. If your average salary is $ 40,000, that means you need $ 400,000 in life insurance coverage. Your union coverage, if it is even available, only covers half of that amount. You must have a private policy to make a difference.
There's one more reason to have your own policy, and that's the end. Your union-sponsored coverage can only apply as long as you are actively working through the union. Otherwise, your benefit expires, which means that you are completely uninsured.
If you are considering getting a private life insurance policy, you should act now. This is because you will never be younger than you are right now, and you will probably want to get coverage before you develop any chronic health conditions.
And, in the type of industry that construction is, the ability to develop this health conditions – including through injury – is higher than in most other areas.
How insurance companies consider life insurance for construction workers
While life insurance companies tend to regard construction workers as a high-risk crew across the board, there are varying degrees of how much risk the job entails.
For example, if you work for an office construction company in an administrative capacity, you will probably not receive any premium increase as a result of your job. And if you are a supervisor or manager, there can only be a small premium increase, if any at all.
However, if you actually do construction work in your daily activities, you should expect to pay a higher premium. This too can vary based on specific responsibilities. For example, the insurance company will want to know what your specific tasks are, what type of machines and tools you work with and any safety training or precautionary measures taken as part of your job.
They will also be particularly concerned about your work environment. For example, if you normally work on building one- and two-storey buildings, the risk will be considered lower than if you work in higher structures where the risk of fatalities is greater.
Non-professional risk factors may be more important than your profession
If you are a construction worker, never assume that your profession will be the only deciding factor in your life insurance premium, or even with the most important.  When insuring an application for life insurance, the insurance companies look for the total risk profile presented by the applicant.
Non-occupational factors that will be taken into account when determining your premium will include the following:
- Your age : the older you are, the higher your premium will be.
- Gender: premium rates for women are lower than for men.
- Your health: this is usually the single most important consideratio n determining your premium, even more than profession. It will be determined by any chronic health condition you have or have had in the past.
- Family Health History: Health history of your immediate family, including parents and siblings.
- Life Choices: Smoking, excessive alcohol consumption or illicit drug abuse.
- High Risk Hobbies: activities such as skydiving, competition and deep sea diving will result in a higher premium, sometimes much higher.
- Your driving record: accidents with errors, multiple traffic violations, license suspensions and especially DUI / DWI sections.
- Your credit history: Significant credit issues may indicate a high stress / high risk lifestyle.
- All criminal records you may have.
- Other factors unique to individual insurance companies.
If your profile in each of these areas is excellent, you will probably get a preferred plus premium rate even as a firefighter. However, if there are any additional risk factors in the above categories, especially those that may have an impact on your profession, it will affect your premium.
For example, a 50-year-old construction worker is considered to be at higher risk than a 25-year-old. The same applies to an overweight construction worker versus one with a normal weight. The combination of factors can make the risk of death at work higher.
How much will a construction worker be able to influence your premiums?
There is no answer to this question. As you can see from the combination of potential risk factors above, as well as the specific level of risk for your job, you generally need to go through the insurance process to get a reliable premium statement.
In the best case scenario, where your job is relatively low risk, there will be no extra premium for your profession.
In a higher risk classification, you may pay an additional fixed fee, such as $ 2 per $ 1,000 coverage. If so, a $ 200,000 policy will add $ 400 (200 X $ 2) to the annual cost of your premium. If the regular premium is $ 500, you will add a $ 400 fee to the job market to increase your premium to $ 900 per year. The advantage of the standard fee, however, is that it can be removed if you move to a job or profession with a lower risk.
If your profession involves a significant risk, your premium can be determined by what is called a table reading. This is where the insurance company takes into account all your risks in combination and awards a premium that they consider the insurance acceptable for.
In both cases, you generally pay less for a life insurance policy that requires a medical examination than one that does not. This applies to the entire life insurance industry and not just to construction workers. The medical examination gives the insurance company an opportunity to assess your latest state of health, which enables a more accurate pricing of premiums. If the policy does not cover a medical examination, the premium will automatically be higher.
A term life insurance usually costs only a small fraction of an entire life policy, as it is temporary and does not include a cash accumulation. If you want to save money on your premium, longevity is definitely the way to go.
How to apply for life insurance for construction workers
If you are a construction worker or work in a high-risk profession or have a significant health condition, you should always work with a life insurance broker. That's what we are, and the advantage for you is that we work with dozens of different insurance companies. It gives us the opportunity to match your application with the company that will probably have the most positive view of your insurance profile.
This is a more important strategy than most consumers understand. All insurance companies have their own guarantee criteria with regard to risk. It includes health conditions, such as heart disease, cancer and diabetes, as well as high-risk occupations and high-risk hobbies and behaviors.
If you have any of these, you must apply to the right insurance company. It is the one who is most likely to approve your policy and give the most reasonable premium.
We know exactly which companies work best in your particular situation. You can waste a lot of time applying for what you consider to be the cheapest life insurance providers, only to end up or be rejected or pay a premium that you cannot afford.
Let's shop for you and we'll get it right the first time. You will not pay anything extra for our services, as we are compensated by the insurance companies, not by you.
* While we make every effort to keep our site up to date, you should be aware that "current" information on this site, such as quotes or relevant company details, may only be accurate from the last day of editing. Huntley Wealth & Insurance Services and its representatives do not provide legal or tax advice. Contact your own legal or tax advisor.