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How Your Career Can Affect Your Term Life Insurance Premium

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Many factors go into determining your term life insurance premium, including the risks involved at your job.

Purchasing life insurance is vital for anyone and can leave your loved ones with the right amount of financial stability. It doesn’t have to be extremely expensive if you search around for an affordable life insurance quote online on different comparison websites.

The purpose of term life insurance is to take care of your dependents in a tragic accident. Find out what factors go into determining your premium and how you can make sure your high-risk career doesn’t get in the way of a low-cost insurance plan.

How Your Job Can Affect the Term Life Insurance Premium

What are the factors of a life insurance premium?

A few different factors will determine your term life insurance premium.

First, the insurance company wants to uncover how much of a risk you are and the chances that your policy will have to be paid out. This is because there’s a whole lot of hidden factors that help to determine what the rate of a policyholder will likely be.

You will reduce your chances of being ripped off by dubious firms and underwriters if you understand everything it takes to choose the best life insurance company.

Life insurance is most important if you have dependents who rely on your finances to support them, so you must purchase a plan in this type of situation. Finally, you must go through the application process, which might include a medical exam.


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Below are the most common ways that the insurance company will decide how much your life insurance cost should be:

  • Career
  • Gender
  • Tobacco use
  • Coverage amount
  • Coverage type
  • Overall health

How can my career change how much I pay for a term life insurance premium?

For the company, the most important part of an insurance policy is that you don’t have to use it — which means they hope you live a very long life.

It is more expensive for them if you have to use your life insurance policy. Having a job with an extreme amount of risks will raise a flag to the company because of your increased chance of death. Because this will not be the only factor they consider, it usually won’t be highly detrimental to your premium price.

Each life insurance company has its definition of hazardous duties that can increase your policy pricing. Depending on the company, some policies will charge you an extra flat fee for your hazard duties. This fee can range from $2-5 per $1,000.

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What careers increase life insurance the most?

How your job can affect your term life insurance premium

You need not ask why you need life insurance coverage, especially if you are working in a hazardous environment. And the amount you will pay will most likely be influenced by your career and the death benefit you want for your loved ones.

Each company has its own set of underwriting guidelines that include occupation ratings. These occupation ratings showcase high-risk jobs that will life insurance more expensive in the United States, the United Kingdom, Australia and other parts of the world.

These ratings will set up a scale to determine how much a person in a specific occupation pays for their life insurance. Of course, the amount will always depend on the insurer, but if your career has too many risks involved, the company might deny your application for life insurance altogether. Below are jobs that could lead to extra costs or possible denial:

  • Commercial fisher
  • Police
  • Firefighter
  • Airplane pilot
  • Farmer
  • Truck driver
  • Construction worker
  • Logger
  • Garbage collector

How do I lower my premium while working a high-risk job?

While you have the liberty to review your life insurance policy at will, please, understand that your career will not be the only factor the insurance company is looking at for your premium.

One significant way to make sure your premium still stays as low as possible is to be healthy — cut out smoking, exercise regularly, and eat a well-balanced diet. If you are prescribed any medications, take them as directed by your doctor to ensure that you are doing everything you can to stay healthy.

If you have a high-risk job, make low-risk lifestyle choices. Making low-risk lifestyle choices means that you are not skydiving on the weekends or riding a motorcycle. Taking these steps to make wise life decisions will show your medical examiner that you are dedicated to staying as healthy as possible. 

When possible, avoid jobs that could raise your life insurance premium even as you maintain a healthy lifestyle.

Purchasing life insurance can be daunting, but it’s crucial for everybody. Your term life insurance premium can be determined by several different things, including the risks involved during your job.

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You can use Fabric, a software that allows you to quote premiums, to make the process much easier. Fabric will enable parents to apply for life insurance, write their wills, and organize their finances all in one place. So get started searching for the most suitable life insurance for you to have peace of mind moving forward. 

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