FreightWaves Ratings cuts through the noise of freight technology product reviews to make you a smarter buyer

What Is Truck Driver Life Insurance?

Truck driving can be a lucrative career, but it’s also a dangerous one. That’s why truck driver life insurance is a good idea, seeing as it can help people who work within the transportation industry to assist their families in the event of the unexpected. 

Unfortunately, you can’t anticipate the moves of every driver on the road, and while trucks are large, they do not have the fastest reaction times due to their size. As such, it is wise for truck drivers to obtain life insurance coverage. 

Learn more about the various life insurance types and seek coverage that can protect you financially, no matter what happens.

How Does Life Insurance Work For Truck Drivers?

Life insurance includes a variety of terms, like final expense coverage, universal life insurance and guaranteed term life insurance. But what does all of this mean? 

And how can you be sure that you are receiving the coverage that you need? Keep reading to get the answers to questions that truck drivers commonly ask regarding life insurance.

Is it Difficult To Get Life Insurance as a Truck Driver?

The biggest challenge truck drivers face when acquiring life insurance is finding the time to complete the required medical exam, seeing as truck drivers are always busy and on the move. Another challenge truck drivers might face is an increase in health risks due to how sedentary they are as part of their job. 

Truck drivers often face obesity, heart problems and diabetes due to the physical constraints of their work. And the more health problems you have, the more expensive your life insurance for trucking will be.

How Does Your Occupation Affect Life Insurance? 

Your occupation affects life insurance options because it tells the insurance company how risky you are. For example, truck drivers with a reckless driving record might struggle more to get high-quality life insurance coverage. 

This is because insurance companies typically view them as riskier drivers than those who operate other vehicles. Other industries, such as construction, also face challenges in getting life insurance because they work in a riskier line of work.

What Is Considered a Pre-Existing Condition?

A pre-existing condition is one that you’ve been diagnosed with before applying for life insurance coverage. Many health issues qualify as a pre-existing condition. 

Here are some examples:

  • Diabetes
  • Heart problems
  • Asthma
  • Cancer
  • High blood pressure
  • Autism
  • Obesity
  • Epilepsy
  • Depression or other mental health issues

Types Of Life Insurance Available For Truckers

As you shop for life insurance, you’ll find there are many different types of coverage. If you work for a trucking company, you should also review your benefit options to see what coverage you can purchase through your employer. Here’s an overview of the various types of insurance truck drivers can apply for.

Term Life Insurance

Term life insurance coverage is generally the least expensive option. It covers the insured for a set duration, which is typically about 30 years, but you can get term life insurance for as short of a time frame as five years. 

The number of years that you choose to be insured for will impact your premiums as will the value of the insurance coverage. For example, a five-year $500,000 plan will cost more per month than a 30-year $300,000 plan. 

At the end of the term, some plans will allow you to renew coverage, but you’ll be older and therefore deemed riskier to insure at that point. It’s better to buy longer-term insurance than to try to purchase insurance again once your shorter term ends. 

Permanent Life Insurance

Permanent life insurance is the opposite of term life insurance in that it does not expire after a set time. This type of life insurance offers coverage over the course of the insured person’s lifetime. 

This can be beneficial for those looking to ensure that their loved ones receive a financial benefit upon your passing, no matter how old you are when the time comes. Permanent life insurance plans can also help you earn interest over time. Also, in case you face financial challenges, you can take out a loan against your policy as well.

No Exam

No exam life insurance is a good option for truck drivers who have pre-existing conditions and have otherwise been denied coverage under other plans. That’s because this type of life insurance does not require that the insured undergo a medical exam. 

Generally speaking, you can apply for this type of life insurance coverage online, and the process only takes a few minutes, which is ideal for busy truck drivers. Many no exam life insurance plans also provide guaranteed issue, which means that you can purchase life insurance no matter what. 

The main setback of this type of life insurance plan is that it is often much more expensive than life insurance plans that require an exam. So, if you’re a generally healthy person, you should consider other life insurance options instead.

Simplified Issue

Simplified issue life insurance is somewhat like no exam insurance in that you don’t have to undergo a medical exam. However, it requires you to complete a few more steps than the process of obtaining no exam insurance. This is because you’ll have to complete a health questionnaire that asks about any pre-existing illnesses as well as your tobacco use. 

From there, you’ll need to complete a phone interview with an underwriter. Overall, this type of insurance plan is most popular for older applicants who are 60 or older.

Guaranteed Universal Life

Guaranteed universal life does not offer a cash value. Rather, it offers death benefits as well as the possibility of premium return. This can help to ensure that your loved ones have the money they need to pay for your final expenses. 

The plan guarantees disbursement to your benefactors upon your passing, which makes this life insurance option very attractive. Additionally, guaranteed universal life is usually extremely affordable coverage, but that is because it provides fewer benefits than other life insurance options.

Whole Life or Universal Life

Whole and universal life insurance are two types of permanent life insurance. You’ll get an insurance aspect as well as an investment option, which can make this type of insurance more attractive to buyers because it has more benefits than other options.

However, while you will receive more benefits from this type of life insurance, you’ll also face higher insurance premiums. Universal life insurance provides purchasers with death benefits and savings with premium payments, while whole life provides a guaranteed cash value with fixed premiums. As you can see, each plan has its own benefits.

The Importance of Life Insurance As a Truck Driver

Truck driving is a great profession, but it is not without its risks. In 2020 alone, 602 truck drivers passed away because of work-related accidents on the road. That’s a 35% increase compared to the year 2009. 

That same year, there were a total of 107,000 large truck accidents. While the hope is that you are not a victim of any work-related accidents, you never know what will happen, and life insurance is for those whom you might leave behind. 

Life insurance can help your loved ones afford the following expenses if you are no longer here to support your family: 

  • Mortgage payoff
  • Income replacement
  • College tuition
  • Debt
  • Living expenses
  • Medical expenses
  • Final expenses, such as funeral costs

Financial Coverage in Case of the Unexpected

Life insurance coverage is for the loved ones you would leave behind if you pass away. It can help them avoid financial devastation in the event of your untimely passing. 

While it’s not a situation anyone wants to think about, it’s something worth planning for and keeping in mind. Review your health insurance options and apply for the type of coverage that best fits your financial situation.