life insurance for pilots - worth it?

blakeyoung

blakeyoung

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Blake
I am a young father and want to not only continue flying, but also provide for my family in the event of my death. As a private pilot (relatively low-time, about 100 total hours), I do understand that I take that risk every time I go up. I have life insurance provided to me by my employer, but it excludes "risky activities" such as flying. I have therefore been looking into life insurance for pilots. I have come across www.piclife.com and it seems like I can get a relatively good quote - about $100 per month for a $1,000,000 policy (30-year term life). I like to do my research before delving into anything like this, so I was just wanting to see if any of you had had experience with pilot life insurance policies. Are there hidden downsides that make these policies just as useless for pilots as a standard policy that excludes flying? For example, most accidents are deemed the result of pilot error, and if that is the case, would a policy refuse to pay out?
 
If you're a veteran or child of a USAA member, I suggest you give them a call. They also sell other aviation-related insurance.

Otherwise, many insurers will sell riders to remove the aviation exclusion from standard insurance policies. It may or may not be cheaper than taking a separate policy just for flying.

Rich
 
Thanks, Rich. Unfortunately I am not in the former category you mention.

I have thought about #2 as well, but only recently. I wasn't aware that you could simply ask to remove the aviation exclusion.
 
Here's my PIREP:

I used PIC for my life insurance last year. It was about $150/mo cheaper than other coverage that was not specialized in dealing with pilots. Good customer experience with them, pretty easy to deal with. I'm pretty satisfied with them.
 
I got mine through piclife. Same amount of coverage, but I'm paying four times as much. Probably cuz I'm a fat old man with high blood pressure. I didn't get it because I'm flying, I got it to protect my family. Mine policy is through MetLife, which is now Brighthouse.
 
Blake, you can find offers for pilots that compete with one another. Just contact an aviation-specific insurance broker. Two such brokers are Pilot Insurance Center, or Travers. They are both good.

I used the Travers agency, which got quotes from several life insurance companies. I am probably older than you, so I sought a ten-year term. Minnesota Life ended up being the best offer for me that Travers found.

For you the best offer might well be from another insurer. Your aviation-specific broker will find it for you.

AOPA is, in effect, another broker that won a bid to be licensed to use the AOPA name, thereby effectively giving a cut of your deal to AOPA. I preferred to go straight to a high quality broker without the AOPA marketing schtick.
 
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I’m in my late 20s and was able to get a 20-year $500k term policy through AOPA for $90/quarter a few years ago.
 
"I am a young father and want to not only continue flying, but also provide for my family in the event of my death."

I'm not sure you'll continue flying after your death.

Of course that's not what you meant.

If your employer plan has an explicit prohibition for flying you should keep it at the "included" price, since you're more likely to die on the freeway than in an airplane and it's a benefit of your employment.

Then purchase another plan that includes flying, scuba diving, fire walking and all that. IF you die on the freeway they both pay. If you die flying an airplane there's money there.

But I'm just SGOTI, your mileage will vary.
 
It’s a waste of good money.
I bought mine through PIC too, 25 years ago and I’m still here, damnit!
 
My work life insurance had no stipulations but the work AD&D policy did have aviation exclusion, I bought a AD&D through AOPA and it was dirt cheap.
 
Yep, the peace of mind is well worth it. We got a million on hubby in addition to his employer provided insurance, and the "pilot" policy will pay not only aviation related death, but any death.
 
Ravioli said:
"I am a young father and want to not only continue flying, but also provide for my family in the event of my death."

I'm not sure you'll continue flying after your death.
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Don't tell him what he may or may not do with his time in the afterlife!
 
Rushie said:
Yep, the peace of mind is well worth it. We got a million on hubby in addition to his employer provided insurance, and the "pilot" policy will pay not only aviation related death, but any death.
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Remember the Fred MacMurray and Barbara Stanwyck film noir movie?
 
blakeyoung said:
I have thought about #2 as well, but only recently. I wasn't aware that you could simply ask to remove the aviation exclusion.
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It’s worth checking into. When I added some life insurance over what I had I asked my insurer and they had me fill out a questionnaire... how many hours a year, ratings, etc. The increase in coverage came back from underwriting at no price change for what it was quoted with Aviation excluded and was a piece of cake.

It all depends on the underwriter. Only some even do Aviation. But usually if the underwriting passes up the food chain to a larger underwriter or especially AIG as the main underwriter, it’ll go through.

Seems to be somewhat dependent on which way the winds are blowing that year, too, judging my other’s experiences.

Surprisingly at the time I was a very low time instrument pilot and that didn’t bother them at all.
 
the best time to buy life insurance is before you start any kind of flying or even training - or any risky activity.
They you can honestly say 'no' on the app when they ask.

The ones I have seen do not exclude activities that you start after the policy is issued.
 
Let'sgoflying! said:
the best time to buy life insurance is before you start any kind of flying or even training - or any risky activity.
They you can honestly say 'no' on the app when they ask.

The ones I have seen do not exclude activities that you start after the policy is issued.
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There’s a time period where both parties can cancel after the policy is in effect. See your local State laws for details.
 
Thanks for all the help so far! Very informative.

BTW, I just talked to my State Farm agent (I have all my other policies with SF - home, auto, umbrella, etc), and she said that State Farm offers life insurance without aviation exclusion. So good news! I'll see what SF offers, and look into PIC or Travers if necessary.
 
Get a term policy for xx years. Then cancel it when the kids are older. You no longer need. This is the lowest cost/best solution for you.

Life ins is a huge profit maker. Whole and universal are total rip-off's.
 
RJM62 said:
If you're a veteran or child of a USAA member, I suggest you give them a call. They also sell other aviation-related insurance
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Really? You check the insurance policies? They didn't have no-aviation exclusion life insurance policies last I checked with them. Their general liability policies do not cover aviation as well. And their aviation insurance brokerage is crap. They used to be good twenty years ago, then they became a fairly ineffective broker (which there's really no excuse because they shouldn't have any less access to other underwriters but after they sold out their customers to USAIG, they don't look very hard. Travers found better coverage than USAA the day after I tried USAA.


Anyhow, for life insurance, I shot inquiries to PICLIFE as well as whoever AOPA was "recommending" at the time. The latter never bothered to respond. I at the same time fired off a quote request to selectquote just to see what "non-aviation" policies were costing, and I found PIC's quote about the same as the others.

When I got my PIC quote they asked if I did things like skydive, flight instruct, or drove race cars. I said, no but I might do that eventually. They said that's fine, but the rate was determined as to my imminent behavior and I was free to take the others up later.
 
Rushie said:
Yep, the peace of mind is well worth it. We got a million on hubby in addition to his employer provided insurance, and the "pilot" policy will pay not only aviation related death, but any death.
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That should keep him up at night...:D
 
Before I turned 40 I bought a $150,000 term life policy from Farmers for $208 per year for ten years. That includes an extra $12 per year to avoid the aviation exclusion.

They did send a nurse to my house to check my vitals, collect urine, and draw blood. They also wanted to know about my ratings and hours.
 
tlglenn said:
Before I turned 40 I bought a $150,000 term life policy from Farmers for $208 per year for ten years. That includes an extra $12 per year to avoid the aviation exclusion.

They did send a nurse to my house to check my vitals, collect urine, and draw blood. They also wanted to know about my ratings and hours.
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Disclaimer, just so other shopping know. That is fairly expensive before you turn 40.. Course, I don't know what else is wrong with you...
 
ja_user said:
Disclaimer, just so other shopping know. That is fairly expensive before you turn 40.. Course, I don't know what else is wrong with you...
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$208 per YEAR is expensive?
 
$208 for $150K is pretty pricey. A buck a unit for a younger person is pretty common.
 
If you think it's expensive for us, trying pricing it if you're an elf on the shelf.
 
Last time I checked life insurances (AIG and transamerica? i think about 10y ago) they did not have aviation exclusion. However they want to know your dangerous activities and will price accordingly. Interestingly, aviation (including aerobatics) was not a big show stopper. But SCUBA was! It actually bumped up the quote several times higher. I ended up staying with group policy at work, it was way cheaper and had no exclusions.
 
Isosceles said:
Last time I checked life insurances (AIG and transamerica? i think about 10y ago) they did not have aviation exclusion. However they want to know your dangerous activities and will price accordingly. Interestingly, aviation (including aerobatics) was not a big show stopper. But SCUBA was! It actually bumped up the quote several times higher. I ended up staying with group policy at work, it was way cheaper and had no exclusions.
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Those are great until you’re laid off or quit and your health has new items that make underwriters crazy good money as you age.

Of course you can mix and match. I still have a policy from back when I nearly killed myself in automobiles on a regular basis that is smaller than the total desired amount today, but literally costs me pennies since it was bought 20+ years ago.

Just be careful with employer plans. The average length of time working for any one company is well below 10 years now.
 
Have you actually confirmed that your employer-provided policy specifically excludes aviation? I assumed mine did, but then I checked. Much to my surprise, it does not exclude.
 
AggieMike88 said:
Remember the Fred MacMurray and Barbara Stanwyck film noir movie?
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1944, my absolute favorite decade for movies, well, late 30s too. They don't make them that good anymore.
 
I am a $2MM policy for about $2k a year.

Aviation is covered.

Pacific Life. Not AOPA version. I had 300 hours with instrument rating when I applied.
 
EricVKX said:
My work life insurance had no stipulations but the work AD&D policy did have aviation exclusion, I bought a AD&D through AOPA and it was dirt cheap.
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True, I've never seen a group policy with limitations.

Best bet is to get a conventional 20 year level term policy, while you're young. It'll be cheap and (most?) life policies go no-exclusions after being in force for a couple years.
 
Rushie said:
1944, my absolute favorite decade for movies, well, late 30s too. They don't make them that good anymore.
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30s have some great movies. Still had silent actors acting out their role but with dialog. I love the old gangster movies from the 30s.
 
bradg33 said:
Have you actually confirmed that your employer-provided policy specifically excludes aviation? I assumed mine did, but then I checked. Much to my surprise, it does not exclude.
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My problem is the employer sponsored one isn't adequate and the supplemental that was offered did indeed exclude aviation (and the company should know, they build light aircraft and engines and propellers...they don't even let the employees fly in them on the job).

PIC life was able to get me covered at at age 40, non smoker, but high cholesterol for just over a dollar a unit. It doesn't need to cost more for aviation coverage, you just need to shop the right policies.
 
Zeldman said:
Please don't tell my wife I am worth much more dead than alive right now......:lol::lol:
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LOL. Same here. Not quite enough for her to pay a hit man though. :)

flyingron said:
My problem is the employer sponsored one isn't adequate and the supplemental that was offered did indeed exclude aviation (and the company should know, they build light aircraft and engines and propellers...they don't even let the employees fly in them on the job).
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Says so much about the modern manufacturers that do this. All of it bad. Happy to take anyone else’s money but don’t eat their own dog food.
 
blakeyoung said:
I am a young father and want to not only continue flying, but also provide for my family in the event of my death. As a private pilot (relatively low-time, about 100 total hours), I do understand that I take that risk every time I go up. I have life insurance provided to me by my employer, but it excludes "risky activities" such as flying. I have therefore been looking into life insurance for pilots. I have come across www.piclife.com and it seems like I can get a relatively good quote - about $100 per month for a $1,000,000 policy (30-year term life). I like to do my research before delving into anything like this, so I was just wanting to see if any of you had had experience with pilot life insurance policies. Are there hidden downsides that make these policies just as useless for pilots as a standard policy that excludes flying? For example, most accidents are deemed the result of pilot error, and if that is the case, would a policy refuse to pay out?
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Pic life, IMO is expensive. If you are looking for whole life, many of the larger companies, I have Mass Mutual, will provide coverage to you, to include flying GA. I had to take their medical, consisting of blood work and history and answer a few pilot time questions, that was it. You could probably get term also, but I was never a fan of term insurance. I feel you are just throwing money away. Good Luck.
 
C-1 PILOT said:
Pic life, IMO is expensive....

If you are looking for whole life, ...

I had to take their medical, consisting of blood work and history and answer a few pilot time questions, that was it....


You could probably get term also, but I was never a fan of term insurance. I feel you are just throwing money away. Good Luck.
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PIC is expensive for what, compared to who? My experience with them as a broker was they delivered a suitable policy from Lincoln that was priced competitively for preferred rates in my age group and term.


If you are looking for whole life, you will pay more in premiums for much less coverage. It’s a fact because most term policies never pay out, but most whole life policies do. I’m a believer in the value of a combination of whole and term, but there needs to be a well thought strategy that supports your insurance needs overall.

Most places will require a medical exam of some sort to determine what pricing bucket you fall into. Ultra preferred, Preferred, Standard. Smoker or non-smoker. There are some new offerings that will underwrite without an exam if you elect to submit electronic health records in lieu of.

Curious why you’re not a fan of term. For most people, it is the most value and, with a well thought out strategy, can be stacked to provide much more coverage up until about age 72, then it becomes much less affordable for the coverage necessary.
 
TCABM said:
If you are looking for whole life, you will pay more in premiums for much less coverage.
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Ah yes, whole life.

A term policy that’s 75% more expensive, grows slower than the worst index fund, has fees that would make a hooker blush, you can take a loan from it and have to pay yourself interest, and then at the end game they confiscate your “savings” to pay themselves the highest “fee” in the entire Ponzi scheme.

Lovely stuff, if you sell insurance. LOL. Nice sales commissions paid out over the first couple of years. Total ripoff masquerading as an investment.
 
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