Life Insurance For Firefighters

Some occupations have higher risk of fatal injury and death than others. The good news, however, is that being a firefighter won’t stop you from getting traditional life insurance.

In some cases, you may even qualify for standard rates.

We’ve put together this guide to help you find out everything you need to know about life insurance for firefighters. 

Key Takeaways: 

• Firefighters can qualify for traditional life insurance
• How much you will pay for life insurance depends on your specific job duties and personal details, like age, gender, and health
• Some life insurance companies rate applicants with hazardous occupations more favorably than others, so it’s important to shop around

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Why is life insurance important as a firefighter?

Life insurance is important if you have people in your life who depend on you for their financial well-being. When you have adequate life insurance coverage, you can rest easy knowing that your dependents will be able to live comfortably after you’re gone.

In the event of your death, the death benefit can help your surviving spouse or partner cover living expenses, pay off the mortgage, pay for your funeral, and take care of kids’ college fees.    

Because firefighting is a high-risk job, people in this profession particularly need life insurance. While most fire departments offer group life insurance coverage to its employers, depending only on it could leave you underinsured.

The coverage amount is usually limited to one or two times the annual salary, which may not be enough for your family. For this very reason, most firefighters should consider purchasing an individual life insurance policy, regardless of whether they have group coverage or not. 

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How to apply for life insurance as a firefighter

Life insurance application process is simple, easy, and painless, regardless of what you do for living. The five-step application process mentioned below is fairly standard throughout the Canadian life insurance industry. 

1. Decide the coverage amount and the policy type

How much life insurance and what type of it you need depends on your personal and financial situation. The death benefit should be large enough to cover your obligations after your death and the policy should last till your last major financial obligation is taken care of. If you are not sure about how much coverage is right for you or whether you need term or permanent life insurance, consider speaking to an experienced, independent insurance broker like Dundas Life. 

2. Compare quotes from multiple providers

Once you have decided how much and what type of coverage you need, you can get quotes from multiple providers. When buying life insurance, it is important to shop the market since life insurance premiums vary wildly from one insurer to the next. 

3. Fill out the application form

After choosing the life insurance carrier that best fits your needs, you will need to fill out the application form. Apart from providing personal details, you may have to answer a few questions related to your medical history, work history, and lifestyle.

You should always answer these questions truthfully, because lying on the life insurance application form can have serious consequences. The insurer can refuse to write you a policy or cancel the policy after issuing it. It can even refuse to pay the claim filed by your beneficiary, leaving your family without the financial assistance they were banking on. ‍

4. Schedule a life insurance medical exam

As part of the underwriting process, many life insurance carriers and policy types require applicants to undergo a paramedical exam, which is similar to an annual physical. The medical exam is free to you and you can have it scheduled at a time and place convenient to you (no medical exam options exist for a slightly higher cost).

The paramedical will typically take your vitals, like blood pressure, and collect blood and urine samples, and the entire medical exam usually doesn’t last more than 30 minutes. 

5. Wait for approval

Generally, insurance companies take anywhere between 4 and 6 six weeks to reach a decision. If you are approved, you will receive the policy documents to sign. The coverage becomes active the day you pay the first premium. 

Best Life Insurance for firefighters

Firefighters have access to the same policy types as someone with a different occupation, though they may have to pay more in premiums. As a firefighter, the best type of life insurance for you depends largely on your specific financial obligations. Shared below are the most popular types of life insurance coverage: 

1. Term Life Insurance

Term life insurance is often referred as the purest form of life insurance because it has only one goal: To provide financial assistance to your loved ones at your death. These policies provide coverage that lasts for a limited period, which you can pick at the time of the purchase. Once the policy’s term runs out, the coverage terminates, unless you renew the policy. 

Pros: 

• Lower premiums
• Provides protection only till you need it
• Easy to understand

Best for: 

• Most people, including young couples, parents, and those approaching retirement

2. Whole Life Insurance

Whole life insurance is two products rolled into one — life insurance and investment. It provides life insurance coverage that you can’t outlive and a savings component — called the cash value — that accumulates wealth on a tax-deferred basis. A portion of each premium payment is used for growing cash value, which grows at a set rate.

As a policyholder, you can access the cash value at any time by taking a policy loan or withdrawing funds directly from it. Lifetime coverage and the cash value feature, however, don’t come cheap. On average, whole life plans are 10-15 times pricier than term life insurance.  

Pros: 

• Lifelong coverage
• Lets you build wealth

Best For: 

• Best for people with unique life insurance needs (e.g. a parent with a special-needs child, someone with a large, complex estate, or a high-net-worth individual who wants to use life insurance for investment purposes)

3. Guaranteed Issue Life Insurance

Guaranteed issue life insurance is a small whole life insurance policy that doesn’t involve any medical underwriting. You can get approval for it despite poor health or a dangerous occupation, provided you are below a certain age. The maximum age for guaranteed issue life insurance may vary by the insurer, but generally it is 85 years.

However, these policies offer limited coverage, come with a two-year waiting period, and have costlier premiums than other policy types. 

Pros:

• Approval is guaranteed

Best For:

• People who do not qualify for medically-underwritten life insurance policies

Cost of life insurance for firefighters

Insurance companies consider some occupations, like firefighting, as higher risk than others. The good news is that being a firefighter doesn’t limit your life insurance options. However, depending on your specific job duties, you may have to pay more for life insurance than someone with a safer job, say a computer engineer. 

As a firefighter, how much you will pay for life insurance depends on your job duties, as well as personal details, such as age, gender, medical history, and lifestyle choices. 

When you apply for life insurance, you may be asked additional questions about your profession. Based on your risk profile, the insurer may approve you at Preferred or Standard rate or may charge you a few extra dollars ($2.5 to $5.00) per $1000 of coverage.  

Pros and Cons of Group Life Insurance for Firefighters

Firefighters usually have access to group life insurance through work. Group life insurance is great, but it may not be able to meet all your life insurance needs. 

Here’s a rundown on its pros and cons to help you determine whether you need additional coverage or not. 

Pros

• Price. The employer pays most or all of the premiums.
• Acceptance. There’s minimal medical underwriting involved, meaning you can qualify even with pre-existing conditions.
• Convenience. Getting life insurance cover through work is relatively simple, since the HR department usually takes care of the paperwork. 

Cons:

• Limited coverage: The death benefit is typically capped at one or two times the annual salary. If you have young kids and a mortgage, that amount will not likely be enough.
• Limited options: Most group life insurance policies are term life plans and typically employers work with a single provider. Therefore, you will not have the range of life insurance options that you may have if you shop for an individual policy. 
• Coverage is not always portable. You may lose coverage if you change careers, lose, or leave your job. 

The bottom-line: Group life insurance costs nothing or little to you and involves little medical underwriting, so there’s no reason to not sign up for it. However, you may want to consider an individual policy as well, especially if you have a young family or a lot of financial obligations.

Conclusion

Being a firefighter may increase your premiums but it won’t affect your life insurance options. You can qualify for any type of life insurance you need, provided you are in good health. The type of life insurance that’s best for you depends on your personal and financial situation. 

Not sure about your life insurance needs? Let Dundas Life help you by scheduling a call now.

We will walk you through all the available options and offer you transparent, unbiased advice. We can also provide you with quotes from multiple providers, making it easier for you to secure the lowest possible price. 

Frequently Asked Questions

Do Firefighters need life insurance?

Whether you need life insurance or not depends on your personal circumstances and financial situation. The quickest way to find out if you will benefit from life insurance is to ask yourself this question: Would your death impact someone financially? If yes, consider taking out a life insurance policy. Its proceeds can help your dependent(s) maintain their standard of living after you’re gone. 

Is the employer owned group life insurance transferable?

Many fire departments offer group life insurance to their employees. In many cases, the coverage is not transferable. This means if you switch jobs or leave employment, the coverage will end. Read the policy documents carefully to find out if your policy is portable or not. 

Do volunteer firefighters receive benefits?

Typically, volunteer firefighters do not have access to group life insurance. 

Is life insurance for firefighters tax-deductible?

Life insurance premiums are typically not tax-deductible in Canada. The death benefit, however, is tax-free, as long as someone other than the estate is the beneficiary and the payout is issued in a lump sum.