What does the Change of Occupation provision allow an insurer to do?

The Change of Occupation provision in a life insurance policy specifically allows the insurer to reduce the benefits payable if the insured takes a more hazardous job. This provision is designed to manage the insurer's risk exposure. When a policyholder shifts to a job that is considered more dangerous, the risk of potential claims increases.

As a result, the insurer may adjust the benefits or premiums to reflect the higher risk associated with the new occupation. This ensures that the insurance product remains sustainable and financially viable while acknowledging the fact that different occupations carry different levels of risk.

This provision is important for maintaining an equitable system for both the insurer and the insured, ensuring that premiums and benefits align with the actual risks presented by the insured's chosen occupation.