Life insurance for offshore workers

As an offshore worker, your specific job role will have an impact on the type of cover you can secure, as well as the price you’ll pay.

Your job title and daily activities will allow insurers to assess the level of risk you pose, and your terms will be offered accordingly.

For this reason, many choose to secure life insurance through specialist offshore providers, but these providers often charge more for their cover.

It’s not just specialist providers who can secure life cover for offshore workers.

At Reassured we can compare quotes for those working in the offshore oil, gas and fishing industries - regardless of whether your job role is low or high risk.

We’ll take into consideration your unique circumstances, compare quotes and provide you with the insurers who’re most likely to offer you cover.

We’ll also be on hand to answer any questions you may have.

Our quote service is completely free, so why not get in touch today?

Keep reading to find out everything you need to know about securing life insurance as an offshore worker…

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Can offshore oil rig and gas workers get life insurance?

Yes, it could be possible to secure life insurance if you’re an offshore worker. This includes offshore working in the:

  • Oil industry
  • Gas industry
  • Fishing industry

It’s likely that you’ll need to provide more information about your occupation at the point of application.

You’ll need to let insurers know the industry you work in, as well as more specific details about your job role and the equipment or machinery you use on a daily basis.

This is because some roles within offshore working can be considered to be riskier than others and insurers will need to mitigate the level of risk.

In regards to offshore working and life insurance, the following can be considered high risk (this list includes but is not limited to):

  • Deep-sea diving
  • Operating heavy machinery
  • Engineering
  • Riding in a helicopter
  • Mechanical work

Applications will likely be judged on a case-by-case scenario, as the terms of your cover will depend on the level of risk you pose.

For example, a member of the catering team may secure more favourable terms than a helicopter pilot.

We can help offshore workers compare life insurance quotes from some of the UK's leading providers - simply get in touch to get your free, no-obligation quotes.

Why do offshore workers need life insurance?

Life insurance can help to provide a financial safety net for your loved ones should the worst happen.

If you were to pass away, could your loved ones afford to:

  • Pay off the mortgage?
  • Continue their current lifestyle?
  • Cover living costs?
  • Pay for your funeral (£4,141 for just a basic funeral)[1]
  • Cover additional childcare costs?
  • Pay off outstanding debt?
  • Provide an inheritance?

A life insurance pay out could help to take care of the above for your loved ones if you were no longer around.

How much life insurance do offshore workers need?

The level of life insurance cover you need as an offshore worker will depend on:

  1. What you want to protect
  2. Whether you receive employee benefits

By considering all the aspects in your life that would need to be taken care of for your loved ones, if you were to pass away, you can work out the level of cover you’ll require.

For example, your mortgage and future family living costs.

Receiving an employee benefit, such as death in service, can reduce the amount of cover required as you’ll have an additional financial safety net.

Death in service is an employee benefit that pays out to your loved ones if you pass away during your time in service (you can find out if your eligible for this benefit by consulting your employer).

However, if you leave your profession you’ll also be leaving your cover behind so you shouldn’t depend on this form of protection alone.

If you don’t receive a death in service benefit (for example, if you’re employed by an agency) this highlights the need to take out your own personal cover to protect your loved ones.

If you’re unsure of how much life insurance you need, get in touch with our award-winning team.

We can provide you with all the information you need to make a fully informed decision.

How much life insurance do you need?

Enter your financial commitments below to understand the level of offshore life insurance cover you need.

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£137,934 is the estimated mortgage debt per household in the UK.

The purchase of a home is likely to be the largest financial commitment any of us will make in our lifetime. Your life insurance should cover your remaining mortgage balance to allow your loved ones to stay in the family home should anything happen to you.

Source: Moneynerd.co.uk
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The average monthly household budget in the UK is £2,548 (that’s £30,576 per year), which is spent on transport, food & drink, utilities (gas, electricity, water etc), clothing, council tax and leisure activities.

With energy prices hitting a record high and the cost of living rising sharply in the UK, you may wish to factor in utility bills and family living expenses into your cover.

Source: Nimblefins.co.uk
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The average personal debt of UK adults has risen to £34,566 (not including mortgage debt), with credit cards, personal loans and overdrafts being the most common forms of debt.

Factoring in any debts into your life insurance cover means that, if they need to be paid back from your estate after your passing, your loved ones won’t miss out financially.

Source: Money.co.uk
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According to SunLife, the average cost of a funeral in the UK is £3,953 (with the overall cost of dying at £9,200).

Funeral costs have increased by 116% since 2004 and are a significant cost which should be factored into the amount of life insurance you secure.

Source: SunLife.co.uk
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When factoring in cover for your children, you may wish to calculate the amount based on how long it is until they reach financial independence.

This could include childcare (£7,000 per year for part-time care), school expenses (£1,519 per school year for uniforms, lunches, stationary etc), as well as an additional sum for further education (this could be a contribution of up to £5,000 per year).

Sources: Daynurseries.co.uk, Primarytimes.co.uk & Savethestudent.org
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2 in 5 adults say they are relying on an inheritance to fund their retirement.

Factoring in an inheritance to your sum assured could allow loved ones to live a more financially comfortable life. Alternatively, you could leave a cash gift to a charity of your choosing.

Source: Moneyage.co.uk
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If you’re lucky enough to have your own savings or are part of the 30% of UK residents who already have a life insurance policy in place, this can provide financial protection for loved ones.

By entering your current cover, savings or death in service amount you can reduce the sum assured you require.

Source: Scottishbusinessnews.net
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Offshore life insurance policies

There are multiple policy types for offshore workers to choose from. The most common life insurance policies are:

  • Level term
  • Decreasing term
  • Whole of life
  • Over 50s plan

Level term life insurance

  • Fixed sum assured
  • Provides cover for a specified period of time
  • Term length up to 40 years
  • Cover amount up to £1,000,000

Level term life insurance will cover you for a specified period of time, often up to 40 years but this can vary depending on the provider.

Your sum assured (amount paid out) will remain fixed throughout the lifetime of your policy, so your loved ones will receive the same amount no matter when you pass away during the term.

At the point of application, you’ll need to provide details about your lifestyle, medical history, age and smoking status.

As an offshore worker, you’ll also be required to provide details about your job.

Depending on your job role, it’s possible insurers may inflate the price of your premiums to account for an increased risk.

Level term life insurance is well suited to those with families who want to help protect an interest-only mortgage and future family living costs.

Decreasing term life insurance

  • Sum assured reduces over time
  • Provides cover for a specified period of time
  • Usually the cheapest form of cover
  • Term length up to 40 years
  • Cover amount up to £1,000,000

Decreasing term life insurance will cover you for a specific period of time, this could be up to 40 years but can vary depending on the provider.

Your sum assured will decrease in value throughout the lifetime of your policy, for this reason decreasing term life insurance tends to be the most affordable cover option.

It’s also ideal for helping to protect a repayment mortgage as you can have your cover amount reduce in line with your mortgage balance.

Your premiums will be calculated using your personal circumstances and insurers will assess your age, health and wellbeing, lifestyle, as well as your smoking status.

Working offshore also means that insurers will require more information about your job role to determine the level of risk you pose.

Depending on your job role, you could experience loaded premiums due to an increased risk.

Whole of life insurance

  • Cover lasts for life
  • Pays out when you pass away (not if)
  • Cover amount up to £1,000,000
  • Premiums can become costly over time

Whole of life insurance is a form of life assurance, as your cover will last for as long as you live and a pay out is made when you pass away.

You’ll be required to pay premiums for the rest of your life to keep your cover in place and the price you pay will be calculated using your age, health, smoking status and lifestyle.

When disclosing that you work offshore, it’s likely you’ll also be required to provide more in-depth details about your occupation.

As whole of life insurance lasts for life, this could become a costly option for offshore workers as you’ll be required to continue paying potentially inflated premiums until you pass away.

Instead, whole of life insurance could be well suited to those who have left offshore work, who are still in good health and are looking to secure new cover.

Over 50s plan

  • Guaranteed acceptance
  • Cover lasts for the rest of your life
  • No medical information required
  • Quick and easy application process
  • Cover amount up to £20,000 (depending on your personal circumstances and budget)

An over 50s plan guarantees acceptance to UK residents aged 50 - 85, it's a form of life insurance with no medical information.

You also won’t need to disclose any information about your occupation.

While you might have stopped working offshore by your 50s, this can be a great option for those who are still working offshore or for ex-offshore workers who now have less than favourable health.

Instead, your premiums are simply calculated using your age and level of cover.

Over 50s plans often include a ‘waiting period’, which is typically the first 12 - 24 months of the policy.

If you pass away due to natural causes during this time, no pay out will be made. However, any premiums paid in will be refunded to your loved ones.

An over 50s plan can provide the funds to help cover your funeral, so your loved ones don’t have to pay the whole cost out of their own pockets.

Why not let our award-winning team save you time and money by comparing quotes from some of the UK's leading life insurance providers?

We can take your personal circumstances into consideration and provide quotes from providers who can offer you the most favourable cover.

Offshore life insurance cost

The price you pay for life insurance will vary from person to person.

This is because the insurer will assess the level of risk you pose based on your personal circumstances.

At the point of application, you’ll be asked to provide details such as:

This, along with your level and length of cover, will help to determine the price you’ll pay.

As an offshore worker, you’ll also be required to provide information about your occupation, such as:

  • The industry you work in (eg. gas, oil, fishing)
  • Your job role/title
  • Occupational activities (eg. deep sea diving, working with machinery)

Some roles within offshore work can be more dangerous than others, so the insurer will need to know about your work in order to calculate your life insurance premium accordingly.

For example, someone who works directly on an oil rig may pay more than someone who has an administrative role.

By comparing quotes, you can find the insurers who are most likely to offer you cover and at the right price.

Or you could let an experienced broker, like Reassured, source these quotes - helping save you time and money.

Offshore life insurance companies

It’s a common misconception that, due to the increased risk associated with working offshore, it’s only possible to secure life cover through specialist offshore providers.

This simply isn’t true.

While there may be companies who specialise in securing cover for offshore workers, it could be possible to secure life cover through a standard provider - including some of the providers on our panel here at Reassured.

Not all providers will offer life insurance to offshore workers, so using a life insurance broker can be useful in helping you to find available options.

At Reassured, not only can we compare life insurance quotes for offshore workers, but we can help you through the whole application process and provide all the information you need to make a fully informed decision.

Life insurance for ex-offshore workers

If you’ve previously worked offshore but have since changed occupations, it may be beneficial to look into securing a new policy.

It’s likely that with your current policy the premiums were loaded due to the increased risk of working offshore.

Depending on your current age, as well as your health and wellbeing, you may be able to secure a more favourable premium by disclosing your new profession.

Why not use our free quote service to find out if you could be saving money on a new policy?

Critical illness cover for offshore workers

It could be possible for offshore workers to secure critical illness cover.

Critical illness cover can be added to a life insurance policy for an additional cost and allows you to make an early claim on your policy in the event you’re diagnosed with a serious illness (listed within the policy).

Typically, a list of 30 illnesses are covered within critical illness cover but your policy can be more or less comprehensive depending on the provider.

You can use this pay out to help cover any costs associated with your condition, such as private medical treatment, carers or making necessary adaptions to your home.

As with a life insurance policy, the level of cover you’ll be offered from providers will vary depending on the level of risk you pose.

Compare critical illness cover policies for offshore workers using our award-winning broker service.

Terminal illness cover

Terminal illness cover is included with all term life insurance policies taken out through Reassured.

It’s an additional layer of protection that will allow you to make an early claim on your policy if you’re diagnosed with a life-threatening illness and predicted to pass away within 12 months.

This pay out can help to fund any medical treated needed, help you get your financial affairs in order, or be used to enjoy time with your loved ones.

Write your policy in trust, (avoid/minimise 40% inheritance tax)

Writing your life insurance into trust detaches the value from your estate and passes the rights over to a trustee.

After you’ve passed away, the trustee will then distribute your pay out as per your wishes (similar to the executor of a will).

Writing your policy into trust has the following benefits:

  • Avoid the probate process and receive a faster pay out
  • Reduce or avoid inheritance tax (40% over £325,000)
  • More control over how your pay out is distributed

This allows your loved ones to make the most of your selfless investment.

At Reassured our team can help write most policies into trust free of charge and we’ll also be on hand to answer any questions you may have about the process.

Income protection for offshore workers

Income protection is a form of financial protection that will pay out to you if you’re unable to work due to accident, sickness and unemployment (depending on your policy).

While it’s possible to secure income protection as an offshore worker, the underwriting process for offshore workers may be stricter than those who don’t work offshore.

These exclusions could include (but is not limited to):

  • Travelling in helicopters
  • Diving
  • Operating heavy machinery

Offshore work UK

As an island, the UK presents many opportunities for offshore working:

  • Currently, offshore work supports over 150,000 jobs both directly and indirectly
  • 80% of these jobs are in oil and gas 
  • It's estimated that offshore employment, in the energy sector, will increase by 50% (up to 225,000 jobs) by 2030[2]

Offshore worker life insurance - Compare quotes

Comparing quotes is essential in finding the right provider who can offer you the right price for your chosen policy.

If you’re worried about securing cover as an offshore worker, why not let Reassured help?

We’ve got over 14 years’ experience, securing over 1,000,000 life insurance policies and have helped applicants who have been declined in the past.

Our award-winning team could help you save time and money by comparing quotes.

And the best part is our quote service is completely free.

Simply get in touch for your free and personalised quotes.

Compare Offshore Life Insurance Quotes »

Sources:

[1] https://www.sunlife.co.uk/siteassets/documents/cost-of-dying/sunlife-cost-of-dying-report-2024.pdf

[2] https://oeuk.org.uk/product/economy-people-report-2024/

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