Most consumers know that factors such as personal health, your family's health history and even certain personal habits (such as smoking) and hobbies can have a major impact on your life insurance premiums. [1
This is certainly not true for all professions, but there are several that are classified as "high risk" that can affect your premium.
Such a high-risk occupation has to do with life insurance for steel workers.
It is certainly not that you can not get life insurance for steel workers, but more than that there may be certain factors related to your profession that may result in a higher than normal premium.
Nevertheless, there are ways in which the professional impact of your profession can be minimized.
Why is life insurance for steel workers considered a high risk?
Unfortunately, steelworkers are ranked among the top 10 occupations at risk of fatal work-related injuries.
According to the Bureau of Labor Statistics, steel workers, or more specifically described as structural iron and steel workers, are ranked as the eighth most dangerous occupation:
Interesting steel workers are probably considered to be in a more risky occupation than even police and firefighters.
Some of the reasons why steel workers are considered to be in a dangerous job have a lot to do with the work environment itself.
Since steel work is usually required in high-rise buildings, steel workers usually work well above street level, including hundreds of feet up in the construction of skyscrapers. In this way, they work with heavy building materials, such as steel beams, and often use dangerous equipment.
The height of the job has the obvious potential for falls. Not only are the structures that workers regularly work with minimal, but it is also easy to lose balance when standing on a narrow steel bar hundreds of feet off the ground. It is also possible to lose balance in building debris.
Weather is another factor as much or even most of the work is done outdoors. It has the potential for wet or icy environments, in addition to the effects of high winds. And of course there are always the additional risks of faulty power tools or burns from welding activity.
Why life insurance for steel workers may be even more important than other professions
Most financial experts recommend that life insurance is equal to at least ten times your annual income.
If you earn $ 75,000 a year, you should have at least $ 750,000 in coverage. It will generally be enough to not only cover your final expenses, but also provide the family's financial survival after your death.
You may want to add even more to cover college education for your children or pay off your home loan early.
But the problem is that despite the higher probability of death for steel workers, employers or union-sponsored policies generally cover no more than two or three times your annual income. This means that with an income of $ 75,000, you will have $ 225,000 in sponsored coverage, at most.
It will still leave you cards with at least $ 525,000. And that's the part you'll need to do for a private life insurance policy.
But do not worry that you will not be able to get privacy insurance as a steel worker. There are dozens of life insurance companies available, and although not all necessarily welcome high risk professions, some are.
More than anything else, it is about working with the companies that see the most positive perception of a high-risk occupation, as steel workers.
How insurance companies consider life insurance for steel workers
Insurance companies write over life insurance for steel workers in much the same way as they do for applicants in less dangerous occupations.
For example, your application will be printed based on the usual factors, including your health condition, your family's health history and other factors. They will then receive a basic premium for your policy.
Your profession will be considered as a very specific category of insurance. It is important to understand that life insurance companies do not judge all steel workers in the same light.
They realize that there are different degrees of potential dangers, depending on your specific responsibilities, the company or union you work for and the types of projects you work on.
Special consideration is given to the following:
- The height of the structures you normally work with. For example, higher premiums usually apply if you regularly work on structures that are more than 50 feet high and can be raised for even higher structures.
- Your specific profession in the field – a supervisor or other worker who cannot normally work on high structures will not be charged a higher contribution.
- Specific safety procedures used at work. For example, you get a lower premium if workplaces are routinely equipped with safety equipment, such as nets and harnesses.
- All training you may have received, including safety-related courses.
- Degree of danger involved in your job. For example, a welder may be charged a higher contribution due to the potential to be burned.
- Your personal level of experience. A steel worker with ten years of experience would of course be considered a lower risk applicant than with only one or two years at work.
In addition, insurers may consider your profession in the light of your personal condition. For example, older workers – which means those over 45 – are considered to have a higher risk. Part of this is due to the physical deterioration that occurs in middle age, but also the emergence of any medical conditions that may affect your job.
For example, hypertension or diabetes may increase your risk profile, as either can lead to episodes of dizziness or disorientation or, in the case of high blood pressure, the potential for stroke.
The occurrence of any of these situations may cause you to trip, which may result in a fatal fall.
Non-professional risk factors may be more important
As noted from the beginning, your profession as a steel worker is far from the only factor that will affect your approval of the application and the grant you will pay.
Other factors include:
- Your age – A 50-year-old pays a higher premium than a 25-year-old, especially in combination with high-risk work such as steel work.
- Gender – due to longer life expectancy, premiums for women are lower than for men.
- Your he alth – for most applicants, this will be the single most important consideration that determines your premium. Any chronic health condition that you have or previous episodes of major illnesses, such as cancer, will result in higher premiums.
- Health history of your immediate family including parents and siblings.
- Personal habits such as tobacco, excessive alcohol consumption or illegal drug use, will result in higher premiums.
- High-risk hobbies – High-risk activities such as deep-sea diving, parasailing or cross-country skiing, will result in a higher premium.
- Your driving record – in case of accidents due to errors, multiple traffic violations, license suspensions and especially DUI / DWI sections will result in a higher premium.
- Your Credit History – Significant credit problems may indicate a high stress / high risk lifestyle.
- Any criminal records you may have.
If your profile is clean on all or at least most of the above, your premium will only be adjusted higher for your profession. And once again, there are a number of factors that determine exactly how much higher the premium will be.
How much will a steel worker be affected by your premium?
There is no definitive answer to how much higher your premium may be due to you being a steel worker. And as discussed above, there may be some jobs in the area that do not lead to any premium increase at all.
However, provided you are working on a job that involves a higher degree of risk, mainly performing high-level steel work, you can expect a certain increase in your premium.
The insurance company will start by calculating a premium rate based on your total non-professional profile. For example, let's say you buy a 20-year, $ 500,000 life insurance policy. Based on all the factors apart from your profession, the premium is set at $ 700 per year.
If your specific job is considered high risk, they may add a flat fee to the extra cost of that premium. The fee can range from $ 1 to $ 5 per thousand coverage.
If the insurance company assigns a moderate level of risk to your specific job, they can set the standard amount at $ 2.50 per thousand. Because your policy is for $ 500,000, the professional premium supplement will be $ 1,250- $ 2.50 X 500 (000). When you add your $ 700 premium level, your total premium will be $ 1,950 per year.
One of the advantages of this type of price structure is that it can be adjusted if your job status changes. For example, if you go into the policy for a couple of years, you move into a less dangerous role. The adjustment of the standard fees can either be reduced or eliminated.
The same would be true if you change profession. If you move out of the steel work and say teaching at a technical college, the higher contribution can be eliminated.
How to apply for life insurance for steel workers
When shopping for life insurance, many consumers are drawn to many advertisements for very low cost coverage that appear regularly on the Internet and even on TV. But as attractive as the ads and prices can be, it is unlikely that you will get them as steel workers. In fact, your application may even be rejected because of your profession.
Very low advertised life insurance premiums are specifically targeted at young, healthy applicants working in non-hazardous occupations. In many cases, they cannot accommodate applicants who have neither serious health conditions nor high-risk occupations.
The better course of action for steel workers and anyone with a higher risk profile is to work with an insurance broker. As an independent insurance broker, we work with dozens of different insurance companies. Our specialty is working with people who do not fit the "perfect applicant" profile.
This is possible because our experience in the industry enables us to match higher risk seekers with the most accommodating insurance company. This will not only increase the likelihood that your application will be approved, but it will also minimize the contribution you will pay.
You may also be surprised to learn that taking advantage of our services will not cost you anything extra compared to making a direct application with a life insurance company. As a broker, we are compensated directly by the insurance companies and at no extra cost to you. It will not only save money on premiums, but also the time you would need to spend on finding the companies that work best for steel workers.
* While we do our best to keep our site up to date, please be aware that "current" information on this site, such as quotes or relevant company information, may only be accurate from the last day of editing. Huntley Wealth & Insurance Services and its representatives do not provide legal or tax advice. Please contact your own legal or tax advisor.