If you’re reading this article, you’ve probably already become aware that some life insurance companies will look at what one does for a living during the application process. And while one’s career usually doesn’t play a significant role in the outcome of a life insurance application, it sometimes does.
Which is why…
We wanted to take a moment and discuss some of the most common questions we get from individuals who work in “construction” who may be concerned that their occupation may prevent them from qualifying for the “best” possible life insurance policy out there.
Questions that will be addressed in this article will include:
- Can individuals who work in construction qualify for a traditional term or whole life insurance policy?
- Why do insurance companies care if someone works in the construction industry?
- What are the most significant construction work hazards that a life insurance company will worry about?
- What kind of information will the insurance companies ask me or be interested in?
- What “rate” or price will I be able to qualify for?
- What can I do to help improve my chances of qualifying for the “best” life insurance policy for me?
So, without further ado, let’s dive right in!
Can individuals who work in construction qualify for a traditional term or whole life insurance policy?
Yes, individuals who work in construction can and often will qualify for a traditional life insurance policy. In fact, many will even be eligible for a no-medical-exam term life insurance policy at a preferred rate!
After all…
Unlike many sedentary jobs that require sitting around a desk all day, a ” construction ” career often requires a lot of “manual” labor, which often forces an individual to get into perfect shape. As a result, many individuals who work in construction will usually be in much better shape than most average white-collar workers when applying for a traditional life insurance policy.
Why do insurance companies care if someone works in the construction industry?
While it is true that working in construction will often force an individual to get into better shape than many “white collar” employees working a nine-to-five job behind a desk, what is also true is that “construction jobs” and “construction sites” will carry their own inherent risks as well. You see, even though you may be in great shape, your health doesn’t matter much if you fall off the edge of a building or have a steel girder fall on your head now.
This is why…
Before a life insurance company underwrites a policy, it will risk dying from any activity you may participate in at work. After all, the average employee will spend between 35-60 hours a week on “the job,” so it only makes sense that an insurance company wants to know precisely what it is during those hours.
Because, as we all know, not all “construction work” is created equal. For example, one may hold many different “titles” that would technically be considered construction work. Titles such as:
- Construction Management – Management jobs are usually lower risk since most work involves supervising and desk work.
- Civil Engineering – Again, this job doesn’t involve daily visits to project sites. Yes, civil engineers will visit the sites, but they won’t be doing the riskiest work.
- Construction Laboring – These are the guys at the most risk of an accident. They are on the site all day, doing most of the manual work.
- Masonry – Brick masonry can be dangerous depending on the height you work at. A fall is probably the most common cause of death for a mason.
- Construction Equipment Operator – You operate machinery that could injure others, but it’s not as often that the one at the steering wheel gets hurt. Yes, it’s more dangerous than management, but not as dangerous as laboring.
- Ironwork – This can be pretty dangerous, especially since it requires a lot of work high up.
- Elevator Installation – Again, very dangerous! You’re inside of an elevator shaft during most of your work. Only 35 states require a license.
- Solar Installation – AKA solar photovoltaic installation. These guys are working really hard, under the sun and high up. Yes, this is dangerous.
What are the biggest construction work hazards that a life insurance company will worry about?
Life insurance companies are generally concerned with any factors that may increase policyholders’ risk of death or injury. Some of the biggest construction work hazards that a life insurance company may consider when underwriting a policy for a construction worker include:
- Falls: Falls are one of the leading causes of death and injury in the construction industry.
- Electrocution: Working with electricity and power tools can be dangerous, and electrocution is a common hazard in construction.
- Equipment and machinery accidents: Construction workers often work with heavy equipment and machinery, which can be dangerous if not used properly.
- Repetitive motion injuries: Many construction tasks involve repetitive movements, which can lead to musculoskeletal disorders and other types of injuries.
- Exposure to hazardous materials: Construction workers may be exposed to various hazardous materials, including asbestos, lead, and other toxic substances.
- Transportation accidents: Construction workers who travel between job sites may be at risk of being involved in a transportation accident.
As you can see, a life insurance company must consider many things before underwriting your policy.
Which is why…
Before most life insurance companies make any decisions about your life insurance application, they’ll want to ask you a series of questions about your job so that they can better understand what kind of risk you would pose to them if they approved your application.
What kind of information will the insurance companies ask me or be interested in?
When applying for life insurance, you will generally be asked to provide detailed information about your employment and job duties. If you work in the construction industry, the insurance company may ask you questions about the specific tasks you perform, the materials you work with, and any hazards you may be exposed to on the job. They may also ask about your work environment, including any safety protocols that are in place.
Typical questions you’ll likely be asked may include:
- What kind of construction work do you do?
- How many years have you been working in this field?
- Do you hold any professional licenses?
- What is your exact job title?
- How many hours a week do you work?
In addition to this job-specific information, the insurance company may also ask you about your overall health and medical history. They will be interested in any pre-existing conditions, treatments, or medications you are currently taking. They may also ask about your lifestyle and habits, such as whether you smoke or drink alcohol and whether you engage in any high-risk activities, such as skydiving or rock climbing.
The insurance company will use this information and other factors to determine your risk profile and set the premiums for your policy. It’s important to be honest and accurate when providing this information, as any misrepresentation could result in a denial of coverage or a void policy.
What “rate” or price will I be able to qualify for?
Determining the kind of rate a construction worker can qualify for involves various variables, including factors such as pre-existing medical conditions, tobacco use, and family medical history. Without assessing these factors, knowing the rate an individual may qualify for is impossible. However, certain assumptions generally hold and may provide a clue.
For example…
Construction workers who do not work in hazardous conditions are typically considered “normal risk” by insurance companies and are not discriminated against based on their career choice. Health and lifestyle choices, such as tobacco use or participation in dangerous hobbies, are critical factors in determining the rate one qualifies for.
Most insurance companies assess each situation on a case-by-case basis for construction workers who work in hazardous environments. As a result, they may need to pay more for coverage than someone in similar health who does not work in a dangerous profession. In some cases, they may even be denied coverage altogether.
What can I do to help improve my chances of qualifying for the “best” life insurance policy for me?
As a construction worker, there are a few things you can do to improve your chances of qualifying for the best life insurance policy for you:
- Improve Your Health: One key factor that life insurance companies consider when determining rates is an individual’s health. Maintaining a healthy lifestyle, such as exercising regularly, eating a balanced diet, and avoiding smoking or excessive alcohol consumption, can help improve your health and increase your chances of qualifying for a better rate.
- Shop Around: Not all life insurance companies offer the same rates, so it’s important to shop around and compare policies and rates from different providers. Working with an independent insurance agent who can provide quotes from multiple insurance companies can help you find the best policy for your needs and budget.
- Choose the Right Type of Policy: Different types of life insurance policies are available, including term life insurance and permanent life insurance. Depending on your financial goals and needs, a policy may be more suitable for you than another. Consider speaking with a financial advisor or insurance agent to determine the best type of policy for your situation.
Following these tips can help you improve your chances of qualifying for the best life insurance policy as a construction worker.
