Well, here’s the thing: it’s not a question of how hard it would be for someone in a high-risk occupation—such as speed demon, road-ripping, Stock Car Driver—to obtain life insurance, it’s a question of how hard it would be for someone in this kind of occupation to obtain it affordably.
One way, or another, life insurance is typically always going to be obtainable, because there’s very few instances where a life insurance company will pass up on being able to charge very expensive premiums in order to profitably insure someone. You can find out more about your own life insurance requirements at Suncorps homepage.
Which is really what it comes down to… profitability.
What Does Profit Have to Do With It?
Really, it has everything to do with it. A life insurance company is still a business—they need to be able to turn a profit to do what they do and offer the service that they offer. They depend on those premiums to both profit and pay out on claims; it’s all a delicate balance that is infinitely more complicated when you get to the nuts and bolts of it all, but that’s essentially what it comes down to on the consumer level.
If a stock car driver were to pay their premiums—at the regular consumer rates—for a year and then die, due to the fact that they’re toying with death on a near daily basis, their insurer would suffer a pretty substantial loss when it came time to payout the claim (a claim that was barely paid for).
It’s a risky game for the old insurance companies, sometimes, and they weigh their risks.
How Does an Insurance Company Decide What’s Risky & What Isn’t?
This decision is mostly two-fold; an insurance company will decide whether an occupation is high-risk or standard based on their own experience with insuring others in the same occupation and/or they’ll make this decision based on the report findings of the U.S. Bureau of Labor Statistics.
Every year the USBLS studies the state of the current workforce and decides which occupations are the deadliest and which ones are in the “we’re trying to live long and relax” category—there’s probably some middle-ground, of course. They decide this by studying statistics within each occupation; specifically the ones that relay how many fatalities occur, simply because this occupation exists, it happens to be dangerous, and people still want to have at it.
Believe it, or not, the blue ribbon winners of the danger-loving sector of the United States workforce is actually fishermen! That’s right; next time you’re dining on fresh Atlantic cuisine, you keep that in mind.
How Do Insurance Companies Balance the Risk?
That’s easy; they charge more for premiums. This way they figure that they’ll at least make a larger return profit if tragedy strikes and can make their claim payout without suffering as much of a loss, or possibly any, if both the insurer and the insured are lucky. Live long and prosper; it’s a common goal between the two, really.
How Should Someone In a High-Risk Occupation Find Life Insurance?
If group life insurance isn’t being offered by their employer—in these occupations, that’s typically the case—or if group life insurance isn’t an option for some other reason, then the best course of action is to seek out the professional assistance of a life insurance agent whose career is dedicated to this specific field of interest, and not to a single insurance company. How do Suncorps policies stack up? Find out for yourself today.
“The most important thing an individual can do is feel comfortable with their agent—that he or she represents more than one company and has resources to fully shop and survey the market through the brokerage community, “ says Gary Dworkin, Chairman of the National Independent Life Brokerage Agencies.
One way, or another, life insurance is typically always going to be obtainable, because there’s very few instances where a life insurance company will pass up on being able to charge very expensive premiums in order to profitably insure someone. You can find out more about your own life insurance requirements at Suncorps homepage.
Which is really what it comes down to… profitability.
What Does Profit Have to Do With It?
Really, it has everything to do with it. A life insurance company is still a business—they need to be able to turn a profit to do what they do and offer the service that they offer. They depend on those premiums to both profit and pay out on claims; it’s all a delicate balance that is infinitely more complicated when you get to the nuts and bolts of it all, but that’s essentially what it comes down to on the consumer level.
If a stock car driver were to pay their premiums—at the regular consumer rates—for a year and then die, due to the fact that they’re toying with death on a near daily basis, their insurer would suffer a pretty substantial loss when it came time to payout the claim (a claim that was barely paid for).
It’s a risky game for the old insurance companies, sometimes, and they weigh their risks.
How Does an Insurance Company Decide What’s Risky & What Isn’t?
This decision is mostly two-fold; an insurance company will decide whether an occupation is high-risk or standard based on their own experience with insuring others in the same occupation and/or they’ll make this decision based on the report findings of the U.S. Bureau of Labor Statistics.
Every year the USBLS studies the state of the current workforce and decides which occupations are the deadliest and which ones are in the “we’re trying to live long and relax” category—there’s probably some middle-ground, of course. They decide this by studying statistics within each occupation; specifically the ones that relay how many fatalities occur, simply because this occupation exists, it happens to be dangerous, and people still want to have at it.
Believe it, or not, the blue ribbon winners of the danger-loving sector of the United States workforce is actually fishermen! That’s right; next time you’re dining on fresh Atlantic cuisine, you keep that in mind.
How Do Insurance Companies Balance the Risk?
That’s easy; they charge more for premiums. This way they figure that they’ll at least make a larger return profit if tragedy strikes and can make their claim payout without suffering as much of a loss, or possibly any, if both the insurer and the insured are lucky. Live long and prosper; it’s a common goal between the two, really.
How Should Someone In a High-Risk Occupation Find Life Insurance?
If group life insurance isn’t being offered by their employer—in these occupations, that’s typically the case—or if group life insurance isn’t an option for some other reason, then the best course of action is to seek out the professional assistance of a life insurance agent whose career is dedicated to this specific field of interest, and not to a single insurance company. How do Suncorps policies stack up? Find out for yourself today.
“The most important thing an individual can do is feel comfortable with their agent—that he or she represents more than one company and has resources to fully shop and survey the market through the brokerage community, “ says Gary Dworkin, Chairman of the National Independent Life Brokerage Agencies.
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