Chances are, if you’re reading this article, you’ve already decided that it’s time to purchase some life insurance for you or a loved one. And, you’re beginning to realize that sometimes what someone does for a living can affect on the outcome of their life insurance application!

This is why…

We wanted to take some time and try and answer some of the most common questions we get form folks who work in the agriculture industry so that you can gain a better understanding of whether or not your current career choices will pay a role in what kind of life insurance you may be able to qualify for (and at what price).

Questions we’ll discuss directly will include: 

• · Can farmers qualify for a traditional term or whole life insurance policy?
• · Why do life insurance companies care if an applicant works in the agricultural industry?
• · What questions will the insurance company want to ask me about my occupation?
• · What rate will I be able to qualify for?
• · What can I do to help improve my chances of being able to qualify for the “best” life insurance policy for me? 

So, without further ado, let’s dive right in!

Can farmers qualify for a traditional term or whole life insurance policy?

Yes, most farmers and those working in the agricultural industry can and will qualify for a traditional term life insurance policy. Heck, they may even qualify for a no medical exam life insurance policy at a preferred rate!

But…

Let’s face it: if you are a farmer or tend to get your hands dirty within the agricultural industry, you probably already know you are doing one of the most dangerous jobs in America. For that reason, most life insurance underwriters will take a deep look at your application before they make any decisions about it.

Does this mean you won’t qualify for a life insurance policy?

No, not at all. If all other aspects of your life check out, you are still likely to qualify for a traditional term or whole life insurance policy. It may be a bit more expensive than if you were sitting behind a desk all day, but we’ll get to that later.

Why do life insurance companies care if an applicant works in the agricultural industry?

Now, as we started to address this in the first question above, the main reason why most life insurance companies are going to care if an individual works as a farmer is because farming can be quite dangerous! In fact, according to some statistics, Farmers are almost twice as likely to get killed on the job than police officers, which makes farmers one of America’s true heroes, seeing how they’re often putting their lives on the line simply to help us put food on our tables.

Unfortunately…

This high risk does not go unnoticed by the life insurance industry, which is why “farming” as an occupation is a big concern for life insurance underwriters, especially when we take a look at the top 5 dangers farmers face regularly. The top five dangers on a farm include the following: 

1. Electrocution – most of the time, this involves an overhead powerline. If you are on farm equipment and it hits the line, you could lose your life.
2. Power Take-Off- also known as PTO accidents, usually occur when a piece of clothing gets stuck in the rotating shaft.
3. Grain Bins – a common cause of death is falling in a grain bin and suffocating.
4. Tractor Accidents – Tractors can roll over or overturn, leading to death.
5. Corn Picker & Combine Accidents – this is a dangerous piece of equipment that can easily injure or kill someone.

However, it’s fair to say that all “farming” isn’t the same, and not all farmers are exposed to the same “type” of risks. This is why, before immediately assuming the worst, most life insurance underwriters will first want to ask an applicant a series of questions that should help shed some light on what “kind” of risk you may pose.

What questions will the insurance company want to ask me about my occupation?

Typical questions you may be asked may include:

• How long have you worked as a farmer?
• Do you own your farm or simply work on a farm?
• What type of farming do you do?
• What type of machinery do you operate and/or work with?
• Do you work with livestock?
• Have you ever suffered from an injury while at work?
• Etc…

A life insurance company will ask these questions to get a better idea of your risk level. The more time you spend on equipment, the more dangerous your job will be. However, if you have had specific training, low accident rates on your farm, and safety protocols in place, they may see you as a lower risk compared to other farmers.

What rate will I qualify for?

It’s hard to say exactly how much your life insurance will cost as a farmer. Remember, your job as a farmer is only one aspect of your insurance underwriting process. Your health, age, and overall lifestyle will also be under scrutiny. 

Now, it’s possible that you may be required to pay an additional “fee” due to your profession; however, cases like these aren’t as common as one might think, particularly if you apply with the “right” company. However, if one is consistently working around dangerous equipment, one should be prepared to understand that even though your job may not sound as exciting or as dangerous as, let’s say, a professional skydiver, statistically speaking, your job may actually be quite dangerous! This is why you may find yourself being charged an extra premium as a result!

The good news is there are many different life insurance companies out there, each with its own unique set of guidelines for determining who it will and will not insure. This brings us to the last topic that we want to take a moment and discuss, which is…

What can I do to help improve my chances of 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 a 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 plenty of options so that one is not limited to 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 will 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.