Life insurance for high-risk occupations explained

Life insurance is an important safety net for people in all kinds of professions. However, if you work in a high-risk occupation, getting life insurance may come with a higher price tag. Jobs that involve physical danger or hazardous environments can lead insurers to charge higher premiums.

This doesn’t mean you should skip life insurance. Instead, it’s worth understanding how your occupation affects your policy and learning how to find affordable cover.

What are high-risk occupations?

High-risk occupations are jobs that expose workers to greater-than-average risks of injury or death. These risks could stem from working at heights, handling dangerous machinery, exposure to hazardous materials, or operating in high-stress or remote environments.

Common examples of high-risk jobs include:

• Construction workers
• Roofers
• Fishermen
• Miners
• Commercial pilots and aircrew
• Offshore oil rig workers
• Firefighters
• Police officers
• Military personnel
• Stunt performers
• Loggers
• Divers (e.g., commercial or underwater welders)

If your job falls into one of these categories, you’re likely to pay more for life insurance because insurers view you as having a higher likelihood of making a claim.

Why do high-risk occupations impact premiums?

Life insurance premiums are calculated based on risk. If you work in a profession with a higher risk of accidents or illness, insurers see you as more likely to pass away during the policy term. As a result, they charge higher premiums to balance out the potential payout.

Other factors also play a role in the cost of life insurance for people in high-risk jobs. For instance, your age, health, and whether you smoke can all influence the price. Occupation is just one piece of the puzzle, but it can weigh heavily if your job involves dangerous activities.

To learn more about how insurers calculate costs, take a look at our guide on life insurance premiums.

Types of life insurance for high-risk occupations

If you’re in a high-risk occupation, the good news is that there are still plenty of options for life insurance.

Choosing the right type of policy depends on your circumstances and the level of protection you need.

Term life insurance

Term life insurance provides coverage for a set period, such as 10, 20, or 30 years.

It’s a popular choice because it’s affordable and allows you to match the term with major financial responsibilities, like a mortgage.

For example, many people in high-risk jobs take out policies to cover specific financial commitments, such as providing for their family or paying off debts.

If you’re unsure how much coverage to choose, our guide on life insurance for different life stages can help.

Whole life insurance

Whole life insurance offers lifetime coverage as long as you continue to pay the premiums. It’s more expensive than term life insurance, but it guarantees a payout to your beneficiaries whenever you pass away.

This is ideal for people who want long-term protection, no matter how their circumstances change.

Tips to reduce premiums for high-risk occupations

While it’s true that high-risk jobs can lead to higher premiums, there are steps you can take to lower your costs:

1) Improve your health

Insurers don’t just look at your job—they also assess your overall health. Quitting smoking, losing weight, or managing pre-existing medical conditions can help reduce your premiums.

Healthy applicants are seen as lower risk, even if they work in a dangerous environment.

2) Choose a term policy

If you’re concerned about affordability, consider opting for term life insurance rather than whole life insurance.

Term policies are generally cheaper and can provide cover during the years your family is most financially dependent on you.

3) Compare providers

Not all insurers assess high-risk jobs the same way. Some specialise in covering people with dangerous professions, while others may charge higher premiums.

Comparing quotes from multiple providers can help you find a policy that fits your needs and budget.

4) Opt for additional coverage

Adding optional extras, like an insurance medical exam, can demonstrate your commitment to safety and long-term health.

Some insurers view this positively and may offer more favourable rates.

5) Look for job-specific policies

Certain industries, such as the military or aviation, may have life insurance insurance providers that offer tailored policies.

These are designed specifically for people in high-risk roles and may offer better coverage or reduced premiums compared to general life insurance policies.

How do insurers assess risk?

When applying for life insurance, you’ll need to provide information about your job. Insurers will assess:

• The tasks your role involves (e.g., working at heights or with heavy machinery).
• Your work environment (e.g., offshore, in high-stress settings, or remote locations).
• How often you’re exposed to these risks.

This information allows insurers to calculate premiums that reflect the level of risk associated with your job.

If you’re in doubt about what your insurer needs, working with a professional can help you navigate the process.

Why life insurance matters for high-risk occupations

If you’re in a dangerous job, life insurance provides financial protection for your loved ones, ensuring they won’t face financial struggles if something happens to you.

Life insurance can help cover:

• Mortgage payments or rent.
• Living expenses for your family.
• Outstanding debts or loans.
• Education costs for your children.
• Funeral expenses.

If you’re the primary breadwinner or have dependents, life insurance becomes even more important. For single applicants, consider how a policy might help cover final expenses or leave a legacy for loved ones. If you’re unsure, take a look at our guide on life insurance without dependents.

Consider additional cover

Depending on your job, you may want to add extras like critical care insurance to your policy. This provides a payout if you’re diagnosed with a serious condition, such as cancer or heart disease, helping you cover medical expenses or take time off work.

If you’re in a physically demanding role, this type of cover can offer peace of mind, especially if injuries or illnesses are a possibility.

Final thoughts

Life insurance for people in high-risk occupations may cost more, but it’s an important investment. From protecting your family’s finances to covering debts and final expenses, a good policy provides security in uncertain situations.

Take the time to compare policies, look for providers experienced in covering high-risk jobs, and consider additional extras like critical illness cover. By choosing the right policy, you can protect your loved ones without breaking the bank.