Life insurance is a fantastic financial tool that provides security for your loved ones in the event of your passing. However, many don’t realise that their occupation can have a significant impact on their life insurance premiums.
If you and a friend both got a quote from the same insurer, you might be surprised to find out that you’re offered different premiums. This is because everybody is unique and insurers consider multiple factors, including the risks associated with different jobs, when determining the cost of coverage.
Let’s Talk Risky Business
Most expect their age and the state of their health to be taken into account when an insurer calculates their premium. This is because they’re assessing the risk that you might claim earlier rather than later. For the same reason, they’re also going to consider your occupation. Those with higher levels of risk, such as firefighters or police officers, are likely to have slightly higher premiums due to the nature of their work. These jobs often involve hazardous conditions, physically demanding tasks, or exposure to dangerous environments, increasing the likelihood of accidents or a premature passing.
Keep Up To Date
MiWayLife believes that a good life insurance policy will grow with you. This means that your premiums should change when your circumstances do. As an example, if you decided to leave your risky profession, you could let us know as this change could lead to a lowering of your premiums. Even something as seemingly unimportant, like losing or gaining a significant amount of weight, can lead to change in your premiums – and often it’s to lower them, so you don’t want to miss out on a potential saving.
The Bottom Line
While it’s not ideal to have to pay a little more for life insurance, it’s vital that you’re always honest with your insurance company. If not, this could result in a denied claim later on. Also, remember that being transparent is always in your best interest as, this way, your insurer can calculate not just the right premium, but the right amount of coverage. Also, remember that a slightly higher premium doesn’t have to mean it’s unaffordable. Why not get a quick quote from MiWayLife? We might just surprise you!
