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Life Insurance for Miners

Just because you're a miner doesn't mean you can't get life insurance or income protection. Here's what you need to know.

Miners face challenges getting life insurance thanks to the high-risk nature of the industry. But insurers assess your insurability based on the actual work you do, not your job title. If you're in a high-risk role you could still be insurable.

Two of the best policies for miners are life insurance and income protection insurance.

  • Life insurance. Your family receives a lump sum payment in the event of your death.
  • Income protection insurance. Get monthly benefit payments of up to 75% of your income if you're injured or sick and unable to work.

Read on to learn more about insurance for miners.

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What are some of the risks miners face?

Miners face serious dangers at work. Potential risks include:

  • Flooding
  • Gas explosions
  • Electrocution
  • Hearing loss
  • Respiratory health problems
  • Cave-ins or tunnel collapses

What types of insurance should miners consider?

Aside from life and income protection insurance, miners might also look at trauma or TPD insurance. Here are the details, benefits and drawbacks of each policy type.

Insurance TypeProsCons
Life cover
  • Receive a large, one-off lump sum payment
  • Only pays out if you die
  • Can cover funeral costs and support your family
  • A single payment may not be enough to support your family, depending on the size of your payment
Income protection
  • Replaces part of your income for a set amount of time
  • Will typically only cover up to 75% of your income
  • Can help you stay afloat financially as you recover
  • Only short-term policies available, which are capped at five years
Trauma insurance
  • Covers you for serious illness or accident
  • The policy doesn’t cover all conditions
  • Paid out in a lump sum to cover immediate costs
  • No cover for pre-existing conditions
  • Can be bundled with life or TPD insurance
  • Less comprehensive when bundled
Total and permanent disability (TPD)
  • Covers you for permanent disabilities
  • No cover for temporary disabilities
  • Can be bundled with private health insurance
  • Paid in one lump sum

Some insurers let you bundle policies together, or give you extra options. You could get a life insurance policy with a TPD benefit option, for example.

How do insurers classify miners for insurance purposes?

Income protection insurance depends on how your occupation is classified by your insurance company. Premium costs and cover options differ for white collar, blue collar and professional collar workers. Workers in the mining industry can be classified as:

Job typeClassificationImpact on insurance
Clerical or executive managerWhite collarWhite collar workers face no exposure to any occupational hazards and typically work in offices. Premiums are lower.
Explosives handler (surface and underground)Not insurableThe most dangerous jobs are uninsurable. You may require a different form of specialised insurance or a policy from your employer.
Surface or underground miner (no explosives)Special riskHazardous work with a higher risk. You'll have to pay extra on your premiums, which is called a premium loading.
Surface workersRated for the usual occupationIf you work in the mining industry but you work as an electrician, for example, your insurer will classify you as an electrician.

When you apply for an insurance policy make sure you specify the exact nature of your work as accurately as possible. This will help you get the right cover and avoid losing out due to exclusions or failure to fully disclose information.

Underground and above-ground miners

Some miners work underground while others work above ground in open-pit or strip mines. Underground miners are at risk from cave-ins or collapses and generally face greater dangers. Above-ground miners face risks of their own. Machinery injuries are common and above-ground miners are exposed to waste material and environmental hazards.

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Maurice Thach

An insurance-savvy writer for finder.com.au who loves finding an answer to the question "Am I covered for ________?"

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2 Responses

  1. Default Gravatar
    PMay 18, 2017

    As per comum practice in WA mine, casual work as a trademan is a regular practice. I would like to know if it is possible to have a income protection. Working 48 hours a week.

    • Staff
      AnndyMay 29, 2017Staff

      Hi PC,

      Thanks for your question.

      On the page above, you may compare insurance brands that may provide cover for miners.

      If you would like to get a quote or speak with an adviser about your eligibility for cover, please complete the contact form above. An adviser will be in touch to discuss your options.

      Please make sure though to read the eligibility criteria, features and details of the policy, as well as the relevant Product Disclosure Statement PDS/T&C’s of the policy before making a decision and consider whether the product is right for you. If necessary, speak to the insurance brand to verify any details.

      Cheers,
      Anndy

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