Did you know that your occupation could have an impact on the premiums you pay for Life Insurance products such as income protection and total and permanent disablement cover?
Why does occupation matter?
Life Insurance is all about managing risk. And if you have made the wise decision to take out cover then you are taking steps to help manage the financial risk of you becoming sick or disabled.
The same goes for Life Insurance companies. When they agree to provide you with cover, they are taking on the risk that you may become sick or disabled, or even pass away, depending on the cover type you are applying for.
To better manage this risk, life companies use factors such as occupation as part of determining the degree of risk they are undertaking as some jobs are inherently riskier than others.
Broadly speaking, occupations can be classified into white-collar or blue-collar. White-collar covers professions do not generally include heavy manual labour, whereas blue-collar covers those occupations where a degree of manual labour tends to be the norm such as construction and mining.
Take for example, someone who works as a window cleaner who works at great heights or a miner working underground or a tradie on a construction site. All these occupations come with a higher level of risk than, say, an accountant or teacher or other white-collar professions. Most insurance companies will ask you for the details of your work environment, often including what your regular daily activities are.
Some occupations may be uninsurable for certain covers such as abattoir workers or someone in the armed services dealing with special hazards.
The effect of being in a riskier occupation when buying Life Insurance products is that you could end up paying a higher premium to cover the increased risk of you becoming injured or sick, or special exclusions may be applied.
If you are looking for cover
You should look for a Life Insurance company that enables you to tailor a policy to fit your needs, such as NobleOak.
If you’re ready to get Income Protection insurance or to consider other Life Insurance products, you can start by contacting NobleOak. Our Life and Income Protection covers have won Canstar awards for several years running.
The good news is, with NobleOak we guarantee your renewals – that is, as long as premiums are paid when due, NobleOak guarantees to renew your insurance cover each year up until the expiry age that applies for the cover. Your existing insurance cover will not be cancelled, nor will your premiums be increased due to any future change in your state of health, lifestyle, occupation or pastimes.
Important information – The Target Market Determinations for NobleOak’s Life Insurance products are available on our website at https://www.nobleoak.com.au/target-market-determination/ . Cover is issued by NobleOak Life Limited ABN 85 087 648 708 AFSL No. 247302. Address: 66 Clarence Street, Sydney NSW 2000. Phone: 1300 108 490. Email: [email protected]