Life & Income Protection Insurance Make Sure you are Covered
Posted by: vincebazemore in Vince Bazemore, Vincent Bazemore, Vincent John Bazemore JrAuthor: Andrew Regan
Despite popular perceptions, people working in stress-related jobs do not have to pay higher premiums for their life insurance as there is no evidence to suggest that their life expectancy is affected by their job. However, in terms of income protection insurance those in high-stress jobs are more likely to pay loaded premiums, according to Kieran Platt, co-founder of Life Direct and an independent financial adviser.
Rather than stress levels, it is the exposure to danger that drives up life insurance premiums. For example, a soldier due to serve a tour of duty in Iran or Afghanistan will find that his or her premiums will significantly increase, or cover may be withdrawn altogether. Workers who are employed as electricians will not have loaded premiums unless they are constantly working at high altitude, such as repairing pylon cables. As far as the insurance industry is concerned, the loading of premiums is in direct relation to the risks involved to the individual performing that job and not to level of stress endured.
However, more surprising than the fact that stress-related jobs do not attract loaded life premiums is the news that so many people have no life insurance whatsoever. Research carried out by life insurance firm Bright Grey found that one in three families in the UK do not have any form of life insurance cover and even less have critical illness and income protection cover meaning that many families could be exposed to financial hardship in the event of an accident or death of a major earner. A prolonged illness or a major accident involving the prime earner could especially impact on a family’s finances, and leave them unable to meet their commitments. Even though they may have critical illness cover the chances are they will not be covered for accidents or major illnesses that are not considered life-threatening. This risk is particularly relevant to those who are self-employed as prolonged illness could destroy their business and cause them serious financial hardship.