Do Construction Workers Need Life Insurance?
There’s no doubt about it, construction workers and laborers not only have some of the toughest jobs, but also some of the most dangerous. When it comes to life insurance for construction workers and laborers, we find that many of them are severely underinsured for the type of work they are performing on a daily basis.
According to OSHA, out of 4,779 worker fatalities in private industry in calendar year 2018, 1,008 or 21.1% were in construction — that is, one in five worker deaths last year were in construction. The leading causes of private sector worker deaths (excluding highway collisions) in the construction industry were falls, followed by struck by object, electrocution, and caught-in/between. These “Fatal Four” were responsible for more than half (58.6%) the construction worker deaths in 2018, BLS reports. Eliminating the Fatal Four would save 591 workers’ lives in America every year.
- Falls – 338 out of 1,008 total deaths in construction in CY 2018 (33.5%)
- Struck by Object – 112 (11.1%)
- Electrocutions – 86 (8.5%)
- Caught-in/between* – 55 (5.5%) (*This category includes construction workers killed when caught-in or compressed by equipment or objects, and struck, caught, or crushed in collapsing structure, equipment, or material)
Therefore, workers in this industry should be keenly aware of their options to protect their families and love ones financially in case of a disaster.
Life Insurance Through Work
Life Insurance coverage offered through work or as a member benefit through the Union is great to start to providing financial security to a family.
However, the main problem that we see with most employer-provided life insurance programs is that they have limits on the amount of coverage that be purchased. This is a big problem, not only for the working employee but also for the entire family.
For example, the Union Labor Life Insurance Company (ULICO) is a Union offered life insurance program that provides Union members the option to purchase life insurance coverage. Life insurance coverage offered through ULICO is only limited to $200,000 of death benefit protection.
$200,000 may seem like a lot of money but most insurance experts believe that you should have around ten to twelve times your annual salary. If your salary is around $50,000 then you would be currently underinsured by a fair amount. You would be able to make up for this shortfall with a universal life insurance contract from a private insurance company compared to the group policy you’re enrolled in.
Additionally, since most construction workers are not sitting behind a desk and computer all day, instead they are on their feet and moving around they are most likely in better shape than the average person. When applying for a life insurance contract your health is a very important factor in how much the life insurance policy is going to cost you. The healthier you are, the cheaper the life insurance is going to be for you.
Universal Life insurance With Disability Rider
If you become totally disabled, unable to work and can’t afford to pay your life insurance premiums, a waiver of premium rider allows you to stop paying premiums and still continue your policy until you are able to return to work full-time. Your life insurance policy remains in force – just as if you were making premium payments yourself. However, you will be required to prove you are totally disabled as defined by your policy rider.
Chances of missing work due to illness or injury, or pregnancy are greater than most realize. More than one in four https://disabilitycanhappen.org/disability-statistic/ of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before they reach the normal retirement age. 5.6 percent of working Americans will experience a short-term disability (six months or less) due to illness, injury, or pregnancy on average every year5. Almost all of these are non-occupational in origin.
You can add this rider onto a universal life insurance contract in order to keep your family financial protected in case something were to happen to you that would not allow you to keep providing for your family.