Where can I get disability insurance (that doesn't punish me for being a pilot)?

[jason]

Hey all,

I'm looking for some suggestions. We've had discussions before regarding life insurance, but I'd like to start a thread related to disability insurance.

I believe long term disability insurance to be an important part of providing for my family in case something were to happen to me. I've been trying to obtain a policy but have been frustrated by what my aviation hobby means for my ability to acquire this coverage.

So, I applied for $3000/mo coverage with a 90 day wait payable until age 65. Right up front they told me that they would have an aviation exclusion. While I believe that to be somewhat ignorant, it was expected so I proceeded. They've returned with a policy that provides the requested benefit amount and wait period, but they've told me that because I have an exclusion on my policy for aviation they're only willing to give me a five year maximum benefit period.

I've asked for their reasoning. My argument was that if you're not going to pay me benefits for an aviation accident induced disability, why does that alter my benefit period? You're not going to pay if it happens, so why am I being punished for flying even if I'm disabled in a car accident? Their response was "that's our policy with any exclusion".

I called AOPA for guidance in finding a company, but they were little to no help. So I'm turning to all of you. Do any of you know of a company willing to write a disability insurance policy that meets my requirements?

 

[sba55]

Jason - I just got disability income insurance ($3000 isn't a problem; they generally insure 70% of your net income) earlier this year from State Farm.

It was a bit tedious, and it also has an aviation exclusion, but they had no problem with coverage to age 65 and I think the premium is quite reasonable ($1500/yr or so up to age 29). 60 day waiting period. It's amazing to me that such a small percentage of people have this incredibly important insurance!

-Felix

 

[rpadula]

Just curious, why are you guys so short on the waiting period? I thought a more common one for long-term disability was 6 months. Short-term kicks in before that.

 

[jason]

Just curious, why are you guys so short on the waiting period? I thought a more common one for long-term disability was 6 months. Short-term kicks in before that.

I cover my own short term. I have 6 full months worth of living expenses set aside in a savings account. I figure that I can afford to take a small portion of those premiums and direct them to shorten up the waiting period. It may not be the right strategy, but it's what I was going with since I subscribe to the emergency fund concept.

 

[jason]

Jason - I just got disability income insurance ($3000 isn't a problem; they generally insure 70% of your net income) earlier this year from State Farm.

It was a bit tedious, and it also has an aviation exclusion, but they had no problem with coverage to age 65 and I think the premium is quite reasonable ($1500/yr or so up to age 29). 60 day waiting period. It's amazing to me that such a small percentage of people have this incredibly important insurance!

-Felix

Interesting. I have State Farm for my auto and home, but thought they were overpriced on the other. Maybe I need to revisit that. My $3000/90 day/5 year policy premium was going to be $380/year...so it's MUCH cheaper than what you're talking about...but maybe that's what it takes to get to age 65.