Effect of occupation on insurance premium

Smoking, pre-existing diseases, and obesity can make life insurer’s wary about offering insurance coverage to you. In these cases, the hesitance bodes well, because these conditions may build your risk of premature demise - and of the insurer having to pay for the claim.

However, apart from health conditions, an occupation or a hobby that insurance companies consider “high risk” can leave one in the lurch when it comes to life insurance, meaning, the person ends up paying higher premiums or he/she can't obtain coverage at all.

So, if you work in a mine for a living or go bungee jumping for a hobby, it will affect the life insurance quote that you receive or/and affect your ability to qualify for life insurance plans.

  • What Makes an Occupation Hazardous?

    Generally, an occupation is regarded to be perilous if it includes a more elevated risk of sudden or premature demise. A few occupations, for example, fishing and logging, convey clearly higher danger of death because of such factors as being cleared off a ship by unpleasant oceans or falling trees.

    Others aren't especially unsafe in the typical course of occasions, however, are highly risky since they expose an individual to conditions that could wind up dangerous. Cases include truck drivers and on-the-road sales representatives. The fact that the person is on the road for extended stretches of time builds the danger of fatalities from accidents, or even from falling asleep in the driver's seat.

  • Why Higher Premium is Charged for Certain Occupations and Hobbies?

    Insurance companies decide how much coverage will cost for your life insurance plans based on your risk factors, basically, the more the risk factors you have, the more you must pay. Think of it in this way: Does it bode well to allow somebody with a more prominent likelihood of premature death to pay the same as somebody who likely won’t die for another bunch of decades? No, right?Hence, insurance companies have set up a range of mortality expectations in which:

    ‘Someone who is considered an average risk is required to pay a standard rate for life insurance. Whereas, people who pose fewer risks than the average pay less and those who pose more risk than the average pay more’.

  • To Outline Differences in Premiums Based on Occupation, Here’s an Illustration:

    An individual working as a financial analyst in a company and who does not travel for his job represents a low-risk factor from a career standpoint. Hence, he may pay less for getting himself a life cover than other professionals.

    Another individual who is a rescue worker and frequently travels over sea, air and land to help during calamities, represents a high occupational risk factor. This individual will pay considerably more for life insurance cover than the financial analyst, office goers or single mothers.

  • Which Occupations Are Considered as High-Risk Ones?

    All insurers have occupational manuals consisting the list of occupations esteemed to affect mortality adversely. In the event that you work in one of the listed occupations, you will probably be required to pay a higher premium. Insurers may charge a higher premium if you are in substantially high-risk professions or engage in hobbies like:


    • Coal miners
    • Airline pilots and flight engineers
    • Firefighters
    • Armed guards
    • Electrical power-line installers and repairers
    • Construction labourers
    • Construction labourers


    • Adventure Mountaineering
    • Bungee jumping
    • Scuba diving
    • Skydiving
    • Cliff diving
    • Rock climbing etc.
The Ending Note:

If you work in a risky occupation field, purchasing life insurance is significantly more critical, particularly if you have a family that relies upon your income.

So, consider your profession in light of these and figure out where it falls on the risk factor scale. Then, create some life insurance quotes to see if the cover is affordable. There are numerous kinds of life insurance plans available, so,if one is excessively costly, investigate the other.Moreover, even if your occupation equates to higher premiums, different terms and cover limits are available, making it possible to tailor life insurance plans to your budget.

*Premium for 30 year old, Non Smoker Male. Policy Term: 30 years for Basic Life Cover option inclusive of Goods & Services Tax. UIN 133N058V03