I am covered if it happens at work but not outside of that. I also don't think my life insurance policy will pay out for a GA accident (which is probably something I should rectify)
Really depends on if anyone needs your projected salary for them to survive/continue life at a particular lifestyle level after you croak.
Most people determine that to be a spouse or kids. If you have none, there’s little point in life insurance. Kids college, stuff like that. Outstanding debt is another one, but one has to see if the debt transfers to anybody who’d need to pay it. Unless married, most debt doesn’t. It dies with you.
The other common use is if a business owner dying would adversely affect other co-owners or the business itself. Money can help fix that so the business can be changed or shut down gracefully. It’s often a requirement or simply desired for partners to cross insure each other.
Otherwise, about the only purpose is burial / cremation and dead guy party / memorial costs.
There’s also an age and investing point in time where personal retirement or other investments cover the funeral costs, or a typical cash emergency fund, and since life insurance rates climb with age beyond the point where just paying it out of pocket is multiples cheaper than paying the insurance premium. Self insured at that point.
The above is based on the decisions most make on term life policies. All the gimkcky policies tied to investments and variable things or annuities have specific reasons for existing that are generally not needed by the majority, at least they’re not the best fiscal option, but very useful for a handful.
They’re also the products with the highest commissions, so guess what an agent wants to sell? Not boring old term policies. They won’t last long trying to make a living selling those at most companies, due to how their incentive package works.
With no kids or spouse depending on the income, term policies simply become a value question of whether or not to leave X number of dollars to someone if you croak early. Fiscally you’re usually better off investing it yourself at that point and not bothering with the insurance at all.
Just mentioning it because you or many others here may be able to rule out any real need to have it, before bothering to fight for a GA flying policy.
Technically we don’t need ours. We had it to cover debts and create a consistent lifestyle for the survivor based upon expected spending. We are still in the lower rate age group so at this point it would be just a “gravy” payout if the survivor continued working. It basically gives either of us the option of taking a large amount of time off work. We also keep it now because I likely don’t qualify at the lower rates, which happens to a lot of people as they age and inevitably medical problems arise.
At some point we say it’s not needed and let it expire or cancel it. The other person can use the already planned savings and investments started long long ago and even add the premiums to those investments instead, slowing their withdrawal rate from those.
