Jason Fisher Many people know their health may be scrutinized when they apply for life insurance, but they don’t realize their occupation will be considered, as well. Life insurance for construction workers may be more difficult to obtain than a standard policy for someone not working a hard labor career.
There are different jobs on a construction site, and some construction workers have a higher risk of suffering an accident than others.
Many people who work in the construction industry have family members who depend on their wages. Although you may get benefits through your job, those benefits may not include life insurance. Even if they do, the coverage may not be enough for your family in case of an accident or injury. We can help you cover the gap.
Better Life Insurance For Construction Workers and Foremen
If you leave the company or retire, the life insurance benefits may end, meaning the coverage is not portable. Getting a policy which can follow you no matter where you work may be preferred, and these are called private or portable policies.
According to the Bureau of Labor and Statistics, 870 construction workers experienced fatalities in 2012. In addition, 4% of construction workers are injured but not killed in construction accidents every year.
Some of the most common construction site accidents include:
Falls – You may be responsible for working on scaffolding or roofs. Construction workers are often using ladders to help them access high places. Tools and materials on the ground provide an environment that’s conducive to slips and falls. These types of accidents happen to more than 34% of construction workers every year.
Electrocution – Even if you’re not an electrician, you may be working in an environment with exposed wires and other electrical dangers. If you come into contact with a power line or unfinished electrical system, you could experience an electric shock or electrocution.
Explosions and Fires – Gas leaks, unfinished piping and electrical work can lead to fires and explosions on the job site.
Defective Machinery – Construction workers must often work with everything from power tools to heavy-duty equipment. Whether the machinery is defective or user error is involved, machinery accidents are a common cause of construction injuries.
When construction workers get hurt, they (and their families) are usually responsible for expensive medical bills. The lost income can affect the family’s future, and worker’s compensation coverage doesn’t always provide enough to support the family, especially in the case of death.
Construction workers can obtain life insurance to provide for an unfortunate scenario such as one of the ones above. Don’t settle for a company who tells you that you can’t get life insurance if you’re a construction worker. You can get an affordable plan that’s right for you and your loved ones.
We can help.
Levels of Risk for a Construction Worker
Life insurance companies usually consider your risk of death when providing you with coverage and assigning your premiums. Because construction accidents are not uncommon, the risk of an on-site worker is higher than for someone who sits at a desk all day.
However, there are many levels of risk for construction employees. The best life insurance carriers will assess your risk in further detail.
A life insurance agent may ask you questions such as the following:
- What are your responsibilities and duties at work?
- What types of machinery and power tools do you operate?
- What does your work environment look like?
- How do you minimize the potential for accidents on the job?
- What safety training are you required to undergo and how often?
These questions don’t necessarily replace the need for a medical examination, of course. Most life insurance policies require a health evaluation, allowing the carrier to look at you from a strictly health related standpoint. Being in excellent health can help you save money on your premiums, even when you work in a higher risk industry.
Possible Outcomes
A healthy individual who has a low risk occupation typically pays the lowest premiums for life insurance. However, it should not be difficult for someone who works in a high risk industry like construction to obtain coverage to provide peace of mind for the family in case of an accident. There are a couple things you’ll need to know before you shop.
A table rating helps insurance underwriters determine the level of risk for construction workers.
A low table rating indicates that the individual has a lower risk of dying. As the table ratings increase, so do the premiums. Although many people assume all individuals who work in a particular industry are assigned the same table rating, it’s not necessarily the case. The table rating will depend on your health and the way you answer specific questions about your job.
You may also be required to pay a flat extra fee if you’re looking for life insurance as a construction worker or foreman. This additional cost is a flat fee that’s added to the initial premium. It’s usually temporary, however. If you change jobs or your health/risk improves, the flat extra fee may be removed.
In most cases, the table rating is based off of your medical exam, and the flat extra fee is added based on job risk, or even extra curricular activities. You don’t always have to pay both. Ask about all of your options when you’re considering life insurance.
Next Steps
If you work in a high risk construction job, look for an independent agent rather than one who is tied to a particular insurance company, called a captive agent. This improves your chances of being covered at a competitive rate because they can do all the shopping for you. In our case, this means working with more than 4o carriers.
If a policy requires you to complete a medical exam, you may be able to use that to your advantage if your health is good. Policies which don’t require a medical exam could help people with certain health conditions secure life insurance even if they work in a high risk field. Those plans can have higher premiums than plans that require a medical exam to help the carrier offset unknown risks.
If you pay your insurance premiums at one time, you may receive a discount, too–quarterly is the most expensive way to pay. If the cost of the premiums sound high per month, ask how much you can save by paying annually, and sometimes even by credit card for extra earned points or percentage off.
Also, know your history. If you can answer the agent’s questions comprehensively and provide specific information about your job, you make the underwriter’s work easier. When the life insurance company has more information about you, they can make a more accurate decision, which can help you secure insurance in many cases.
Never try to omit information. Unknown information results in higher premiums, not lower. The more boxes they can tick, the better.
Once you have obtained a life insurance plan, have it reevaluated every year. Your risk level might change from year to year. That means that your premiums may also decrease as your circumstances change. Even if you have had difficulty obtaining life insurance in the past, don’t overlook the possibility.
