mining for insurance

It has been difficult for some mining occupations to access life insurance in the past. But times are changing.

There are a number of reasons why working in the mining industry is very different to many other occupations.

In addition to working in a fast-paced, high-pressure environment, mining workers are often forced to live a long way from their loved ones. This is one of the reasons miners don’t always stay in the industry all their careers.

Compared to many other occupations, mining can also be dangerous. Whether working above or below ground, mining workers are often exposed to risks associated with heavy machinery, vehicles and working with explosives.

Despite improvements in workplace safety over the last decade, the mining industry still had 2,555 serious workers compensation claims in 2009/10.

Mining is also one of the riskiest industries in terms of fatalities, with an average of 3.5 deaths per 100,000 workers in 2009/10. That’s almost double the national average of 1.92.

Combine these threats with the risks everyone faces in their day-to-day lives – like cancer and heart disease – and it makes sense for miners to have a contingency plan for sickness or injury.

Life insurance considerations for miners

Traditionally, miners have found it difficult to access life insurance on standard terms. However, there are now insurers who offer affordable protection to many mining occupations.

The most common types of life insurance are:

Life cover pays a lump sum if you die or are diagnosed with a terminal illness. The lump sum can be used to meet final expenses, pay off the family mortgage so that your family isn’t left without a home, fund future child education fees and set aside money to meet your family’s ongoing living needs.

Income protection cover pays up to 80% of your income if you can’t work because of sickness or injury. This money is essential in helping to meet your ongoing living needs, including meeting your mortgage repayments, while you are unable to work.

TPD cover pays a lump sum if you are totally and permanently disabled. This may help you repay debts and medical bills, make modifications to your home and motor vehicle, as well as meet lifetime living costs.

Trauma cover pays a lump sum if you are seriously injured in an accident, or if you are diagnosed with one of a number of serious medical conditions, like cancer and heart attack. The proceeds can be used to meet medical treatment costs as well as provide financial support if your spouse wishes to take time off work to look after you.

In addition, miners should look for insurance policies that provide additional protection for accidents and that recognise the true extent of your earning potential – helping you protect the rewards of your hard work.

With so many different types of life insurance available, it’s important to discuss your own life insurance needs with your financial adviser