High Risk Jobs and Life Insurance – Could Deadliest Catch Get a Policy?

If you’ve watched the show “Deadliest Catch” and have thought to yourself, “It must be impossible for these guys to get life insurance”, guess what? You would be wrong.

It’s actually very possible; it’s just not terribly affordable.

Of course, in this scenario we’re examining the crew from a wildly popular television show, so we’re not looking at a “real-world” situation. These guys are most definitely covered by the show’s production company and even if they weren’t, they’re certainly getting paid enough to afford any insurance that they need.

Unfortunately, real-world fishermen don’t have it quite that easy. While their rights, interests, and the majority of their insurance needs are covered by their union, they still have to handle all the financial aspects of it on their own and purchase additional commercial insurance when necessary for a hefty price. Visit GIO today to find out about your own life insurance eligibility, it’s always worth planning for the future.

How hefty? Well, consider this – as ranked by the U.S. Bureau of Labor Statistics, being a fisherman is the single-most dangerous job in the entire country. It tops everything, and that includes: the bomb squad, police officers, firemen, etc. Due to the number of fatalities per year, per 100,000 workers, being higher than any other profession, it tops them all as a danger job.

How does someone with such a job obtain life insurance, then?

As mentioned, it isn’t a matter of being able to nab a life insurance policy – life insurance companies want to extend everyone policies, but they also want to weigh their risk appropriately. They’ll absolutely give a fisherman a life insurance policy; they’ll simply require more money in return than they would from a nurse or a librarian.

How much more would they charge?

On the low end, premium rates would tack an extra $2.50 per $1,000 of coverage onto what a normal policy would cost, if you don’t have anything else boosting the cost (i.e. health problems, family medical history, smoker). Rates vary from insurance company to insurance company, however, so it’s difficult to nail down an exact number. Hence the importance of shopping around and being sure to explore all possible alternative options.

What are these “alternative options”?

Group Life Insurance

One of them is built right into most jobs that know they are high-risk – like being a fisherman. There’s employers, unions, and associations attached to most high-risk professions that understand the dangers, who understand that they need individuals with certain skill sets to get the job done, and that they need to take care of those that do, as they’re difficult to replace. That’s where group life insurance steps in.

Group life insurance is set up by an employer, union, or association and is extended to their members and employees exclusively, with discounts and occupation-specific details customized and built right in.

United Policyholder’s Director of Financial Preparedness, Tony Steuer says, “There’s usually a life insurance option for everyone, even in high-risk jobs. For example, a police or fire department gets group coverage for employees. Loggers can get coverage through an association…”

Sometimes, though, there’s a drawback – group life insurance policies don’t always extend enough coverage for what an individual needs. At times, it can range from only $20,000 to $50,000; which is nothing compared to the $200,000 to $500,000 you can pick up with a commercial policy. Also, if you plan on leaving your job, the group life insurance doesn’t go with you.

Guaranteed-Issue Life Insurance

Another option is the guaranteed-issue life insurance policy, but they tend to be last resort policies due their impracticality. These policies don’t require medical exams, are open to every occupation under the sun, and are exactly what their name suggests: guaranteed-issue, no matter what.

Of course, you’re going to pay around 3-5 times as much as you would pay for a commercial policy that’s already weighted with expensive premiums to obtain one of these. As mentioned, these policies exist only for those who have been exhausted all other resources.

Always Seek Professional Assistance

Gary Dworkin – Chairman of the National Independent Life Brokerage Agencies – says it best here by stating, “The most important thing an individual can do is feel comfortable with their agent—that he or she represents more than one company and has resources to fully shop and survey the market through the brokerage community.”