The Connection Between Career Risks and Term Insurance Rates

Career Risks

In society and at your home, your job may be a title, but in the insurance sector, it is a part of your risk profile. In the world of life insurance, your profession can significantly affect the premium of the insurance policy. That's because some job profiles can be riskier and thus, the premium is also higher. While life remains unpredictable, the risk of job-related hazards cannot be eliminated.

Pilots often navigate through the unpredictable skies, construction workers master heights, chemical industry workers tackle the risk daily, and soldiers bravely stand in the face of the enemy. Workers at mining sites are also at a constant risk of exposure to harmful elements. In comparison to desk work at the office with papers and pens, some field jobs can be riskier. In this guide, we will discuss how your career can affect the term insurance rates. So, read on to make an informed decision!

Understanding Term Insurance

A term insurance policy is a financial cover against the uncertainties of life. It is not an investment like various other life insurance policies. Term insurance, being a pure life insurance policy, provides a death benefit in case the life assured dies during the policy tenure. There are no maturity or survival benefits attached to a term insurance policy.

Did you know, TROP (Term Return of Premium) is a type of term plan where the life assured gets the entire premium back upon surviving the policy tenure?

Career Risks and Their Impact on Insurance Rates

Various factors decide the term insurance premium for a person. The insurance company takes into account several points, such as your age, medical history, current health conditions, area of residence, and occupation. So, just like pre-existing diseases or poor medical history, a riskier job profile can also lead to higher term insurance rates.

People in risky jobs like construction workers, the defence force, mine workers, etc., are at a higher risk of life threats. Hence, the premium charged may also be higher. The term insurance rates, however, may differ depending on the insurance company. So, make sure to compare premiums before you purchase.

Types of Jobs Considered Risky

The conditions of term insurance rates may slightly differ from one insurer to another. However, generally, the following jobs are considered risky by life insurance companies:

• Oil and gas workers
• Construction
• Defence forces
• Mining
• Electricians
• Firefighters
• Logging and forestry workers
• Chemical plant workers
• Pilots and aviation job workers.

Depending on the insurance company, the list may or may not include other risky jobs. Make sure to understand the terms and conditions of a life insurance company and how they calculate premiums to make informed decisions.

Is Your Job Profile the Only Reason for Increased Premium?

The straightforward answer may be no. India is among the top countries with risky job profiles and poor safety standards. The reason why death tolls among factory and mine workers are high is not just the nature of the work. The actual reason behind it could be the poor safety protocols at the working site.

Over 90% of labourers in the informal sectors in India follow almost no site safety protocols¹. You may easily spot construction labourers without caps and safety guards at various sites in India.

So, not only the nature of work but the level of safety protocols at the site and accountability of the authority may also have a role to play. With workers becoming safer, the premiums for term insurance may also become more affordable!

Did you know, according to the International Labour Organisation, around 117 deaths occur every year in India out of every 1 lakh factory workers¹. And these are just the cases that were reported!

Myths: Career Risks and Term Insurance Premium

As discussed above, a job profile can be a decisive factor for term insurance rates. However, people may have certain misunderstandings regarding career risks regarding insurance rates as well. Here we have debunked four popular myths regarding this topic:

Myth 1: High-Risk Jobs Can't Get Term Insurance

Even if you are in a high-risk job like mining or construction, you are eligible to secure a term insurance policy. The nature of your work cannot be a barrier to getting term insurance as long as you fulfil other criteria!

Myth 2: Only Career Risk Matters

Career risks are just one factor among various others that determine term insurance rates. This includes the age of the insurer, their city of residence, medical history, etc. So, by managing other factors, you can purchase term plans at affordable rates.

Myth 3: Hiding Job Details Can Be Helpful

It is extremely important to maintain transparency with your life insurance company. Whether it is about your current health conditions, medical history, or job details. Hiding any detail or mentioning wrong details may lead to legal issues or even termination of the policy!

Myth 4: Career Risks are the Same for All Insurers

The rules and conditions for risky job profiles may be different for different insurance companies. So, it is crucial that you only purchase a plan after comparing. At Jio Insurance Broking, you can compare various term insurance plans to choose the most suitable one.

End Words

Your career is a decisive factor for many aspects of life, including the term insurance premium. Even if you are in a risky job profile, according to the life insurers, nothing shall stop you from achieving career success! When it comes to term insurance, it is one of the most important financial covers you can ensure for your loved ones. So, compare term insurance plans today and choose the one that best suits your requirements. At Jio Insurance Broking, we are always here to assist you!