Life Insurance for Construction Workers.
If you’re reading this article, its because you’ve already become aware that some “types” of life insurance policies will factor what one does for a living into whether or not they will be willing to insure them.
In most cases, one’s career won’t play a significant role in the outcome of one’s life insurance application, sometimes it will.
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 biggest construction work hazards that a life insurance company is going to 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 be able to qualify for a traditional life insurance policy. In fact, many will even be able to qualify for a no medical exam term life insurance policy at a preferred rate!
Unlike many sedentary jobs requiring one to sit around a desk all day, a career in “construction” will often require one to perform a lot of “manual” labor, which will often force an individual to get into really good shape. As a result, many individuals who work in construction will often be in much better shape when applying for a traditional life insurance policy that most average white-collar workers.
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 may “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.
Even though you may be in great shape, your health isn’t really going to matter all that much if you end up falling off the edge of a building or have a steel girder fall on your head now, is it?
This is why…
Before a life insurance company underwrites a policy, they’re going to want to first assess your risk of actually dying from any activity that you may participate in at work. After all, the average employee will spend somewhere between 35-60 hours a week on “the job,” so it only makes sense that an insurance company wants to know exactly what it is that you’re doing during those hours.
As we all know, not all “construction work” is created equal. For example, there are a lot of different “titles” one may hold that would technically be considered construction work. Titles such as:
- Construction Management – Management jobs are usually lower risk since the bulk of the work is supervising and desk work.
- Civil Engineering – Again, this job doesn’t involve being on project sites day in and day out. Yes, civil engineers will visit the sites, but they won’t be doing the riskiest work.
- Construction Laboring – These are the guys who are 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 things like the height at which you work. A fall is probably the most common cause of death for a mason.
- Construction Equipment Operator – You are operating the machinery which 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 is going to worry about?
When it comes to analyzing risk, insurance companies love statistical data. Whether that data looks at the correlation between one’s height and weight and heart disease or whether that data looks at the number of deaths that occur while working.
This is why…
Insurance companies will look at reports created by OSHA (Occupational Safety and Health Administration), which collects data such as workplace mortality rates. And how in 2018, 1008 construction workers died on the job!
Construction worker fatalities made up 1/5th of total workplace deaths. This makes construction work one of, if not the, most dangerous jobs in the USA. The top four causes of death for construction workers are called the “fatal four.” These four ways of dying are:
- Falling – the most common way of dying on a construction site.
- Struck by Object – this could be a brick falling from above, or a person carrying heavy rods and whacking you in the head by mistake.
- Electrocutions – it’s not only electricians who are at risk.
- “Caught in/between” – this involves getting caught in or between machines, equipment, vehicles, or parts of structures.
As you can see, there are many things for a life insurance company to consider before underwriting your policy.
Which is why…
Before most life insurance companies make any decisions about your life insurance application, they’re first going to want to ask you a series of questions about your job so that they can get a better understanding of what kind of risk you would pose to them were they to approve your application.
What kind of information will the insurance companies ask me or be interested in?
Common 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?
Form here; most insurance companies will have a pretty good idea about whether or not your career poses any kind of “extra” threat or risk to it and should have a pretty good idea about whether or not it will play a role in the ultimate outcome of your life insurance application.
What “rate” or price will I be able to qualify for?
As one can see, there are quite a few variables that can come into play when determining what kind of “rate” a construction worker might be able to qualify for. And this is without even considering any factors such as the presence of any pre-existing medical conditions, tobacco use or family medical history.
This is why…
It’s pretty much impossible to know what kind of rate you may be able to qualify for without first speaking with you directly.
That said, however, there are a few “assumptions” that we can make that will generally hold true, which may give you a clue as to what you might be able to qualify for.
Most “construction” workers aren’t working on skyscrapers or working with high-voltage lines or placing themselves in hazardous conditions will be viewed as a “normal risk.” This means that their career choice isn’t going to be something that an insurance company will use to discriminate against them.
In cases like these…
One’s health and other lifestyle choices (tobacco use, participation in dangerous hobbies, etc…) will ultimately be what decides what kind of rate they will be able to qualify for.
Now, as for those…
Who do work in hazardous environments as a construction worker what you’re going to find is that most life insurance companies are going to look at each situation on a case by case basis.
Which means that…
You may find yourself needing to pay more for your coverage than someone in similar health who doesn’t work in a dangerous profession like yours, or you may even find yourself being denied coverage entirely!
Which leads us to our next topic which is…
What can I do to help improve my chances at qualifying for the “best” life insurance policy for me?
In our experiences here at IBUSA, we’ve found that usually, the “best” approach in helping someone find the “best” life insurance policy for them is to first:
Fully understand what an individual is trying to achieve by purchasing their life insurance policy. Are you looking to:
- Cover the cost of a mortgage?
- Replace lost wages?
- Protect a child or spouse?
- Or just cover one’s final expenses?
Then provide one with plenty of options to choose from so that you’re not limited to just one or two different options.
This is why…
We here at IBUSA choose to work with so many different life insurance companies so that when it comes time to help you decide “which” life insurance company is going to be the best for you, we don’t have to apply a…
“One Size Fits All”
Approach. Instead, we can make dozens of different life insurance companies compete for your business.
So, what are you waiting for? Give us a call today and experience the IBUSA difference.