Life insurance pays out a lump sum if you die. When you apply for cover, insurers will consider how much of a risk you are to insure, so they can work out whether to insure you and how much it should cost.
Your job is one factor they'll take into account as they consider this. You might assume that having a risky occupation will make you higher risk in general, making it more difficult or more expensive to get covered – but this tends to be the case only in extreme circumstances.
For most people, your occupation won't have too much bearing on your ability to get life insurance. Other factors, like your health and smoking status, could have a bigger influence.
What's classed as a risky occupation for life insurance?
How 'risky' your job is deemed is generally down to the interpretation of the insurer, but it depends on the type of risks you have to face as you do your job – whether it's an activity you carry out or an environmental hazard. This typically includes things like:
- Working at heights
- Working underground
- Working offshore
- Operating heavy machinery
- Operating firearms
- Working in aviation
- Working in security
Each insurer will have its own list of high-risk occupations, deemed 'risky' based on the activities carried out or the environment being worked in. However, each application will be taken on a case by case basis. High-risk occupations can sometimes include:
What factors affect the price of life insurance?
Your job is one thing insurers will take into account when you apply for life insurance – but there are many other factors too. Including:
- Age
- Lifestyle
- Smoking status
- Personal health history
- Family health history
Besides these personal details, the cover you're applying for will also affect the price. Things like how much cover you need, how long you need to be insured, and what type of life insurance you choose will all play a part in determining the cost of cover.
It's important to be accurate and honest when providing personal information during the life insurance application process. The vast majority of life insurance claims are paid out, but of those that are declined, inaccuracies during the application process is the most common reason.
