life insurance for pilots - worth it?

@denverpilot, you and I are on the same sheet of music. I wanted to meet up when I lived bed KFLY and still do. Though we’ve only interacted online, we believe in many of the same things.

You were part of the inspiration for my CFI poll, and I appreciate your response to it.
 
TCABM said:
@denverpilot, you and I are on the same sheet of music. I wanted to meet up when I lived bed KFLY and still do. Though we’ve only interacted online, we believe in many of the same things.

You were part of the inspiration for my CFI poll, and I appreciate your response to it.
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Ha. If I could ever get it done and start teaching I’d be happy. Not that I’m not a happy sort most of the time anyway, but not being done yet is an annoyance that must be squashed like a bug in 2018.

But today was “type admin password so people could upgrade strange software that triggers antivirus warnings on Windows 10” day... I hate it when the junior Sysadmin is on vacation.

And the airplane is in for its avionics spa treatment anyway. At least good news on that front, the tech called with specific questions so we can tell they’re working on it already! :)

Along with wondering if my pup was okay at doggie camp after we found an otherwise unknown-where-he-did-it puncture wound on his leg and the wifey/wound care nurse grabbed a medical stapler from the country vet and stapled him back together. Kept him home for a day yesterday to let him chill out and heal up a bit. See if he tore it all up playing today... silly mutt.

I did however get a free sandwich at Jersey Mike’s after three years of collecting loyalty points. LOL. Yay me. :) Never look a free sandwich in the eye or something like that... :)
 
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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Between life and aircraft insurance prices and availability, I wonder if the actuaries are trying to tell us something.

Either that, or it's a great way for them to make a lot of money to cover the "higher risk."
 
paflyer said:
Between life and aircraft insurance prices and availability, I wonder if the actuaries are trying to tell us something.
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My airplane is way cheaper to insure than my vehicles in the sixth highest state for uninsured motorists. The joys of being a sanctuary city. The vehicles are worth a lot less than the airplane, too. And cheaper to repair.
 
It's only worth it if you die. If you survive the term it's basically wasted ;-)

I had a Standard Life policy that had a free aviation rider if I flew more than 100 hrs and less than 250 in a standard AW plane. They figured that was he sweet spot when the risk is comparable to other activities.
 
weilke said:
It's only worth it if you die. If you survive the term it's basically wasted ;-)

I had a Standard Life policy that had a free aviation rider if I flew more than 100 hrs and less than 250 in a standard AW plane. They figured that was he sweet spot when the risk is comparable to other activities.
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Some brilliant actuary somewhere figured out that at hour 251 of any aviation activity, the pilot aims for the busload of lawyer’s children and nuns. :)
 
weilke said:
It's only worth it if you die. If you survive the term it's basically wasted ;-)
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Yes, it’s a peculiar thing to buy.

Among all the expensive things I buy, this is definitely the one I most enjoy seeing go to waste.
 
Actually, the highest car insurance rates I encountered was in NJ. I figured it had something to do with the fact that the state insurance system was so screwed up, possibly because the entire state legislature was populated with personal injury lawyers.
 
Back in the day when I wrote for CNA life and lots of others there was NO aircraft or "risky business" exclusion in the POLICY .What there WAS, is a Question on the APPLICATION .I decided to check NO on the app on all of the policies I wrote for myself knowing the contestable period was only two years . I would still be covered for everything except things I forgot on said application. in 2 years you are covered for EVERYTHING ! I saved $50k or more . a few of my clients /flying friends might have forgot to check the boxes on the apps as well. you must just plan ahead of your real need. also with the advent of CLUE reports all company's share tons of info as stated on your applications, so once you poison your file it becomes more problematic or not doable.
.
 
flyingron said:
Actually, the highest car insurance rates I encountered was in NJ. I figured it had something to do with the fact that the state insurance system was so screwed up, possibly because the entire state legislature was populated with personal injury lawyers.
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The chance of a collision with another car is proportional to the density of cars.

NJ has the highest population density of any state, so I imagine it has the highest density of cars as well.

It’s inevitable that it has high rates for collision insurance.
 
NoHeat said:
The chance of a collision with another car is proportional to the density of cars.

NJ has the highest population density of any state, so I imagine it has the highest density of cars as well.

It’s inevitable that it has high rates for collision insurance.
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Replace 'cars' with 'idiots'.
 
I'm not sure that justifies the SIX TIMES difference between NJ and the Washington DC area (Washington DC **** IS THE MOST HIGHEST POPULATION DENSITY *** in the US for states or territories).

The problem is the half-assed no fault that puts just about every PI case into court and a corrupt secondary insurance scheme that doesn't give any insurer any incentive to insure people who aren't in the lowest risk pool.
 
hotprops said:
Back in the day when I wrote for CNA life and lots of others there was NO aircraft or "risky business" exclusion in the POLICY .What there WAS, is a Question on the APPLICATION .I decided to check NO on the app on all of the policies I wrote for myself knowing the contestable period was only two years . I would still be covered for everything except things I forgot on said application. in 2 years you are covered for EVERYTHING ! I saved $50k or more . a few of my clients /flying friends might have forgot to check the boxes on the apps as well. you must just plan ahead of your real need. also with the advent of CLUE reports all company's share tons of info as stated on your applications, so once you poison your file it becomes more problematic or not doable.
.
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Most people aren’t going to plan two years ahead.

But more importantly, there is no two year limitation on cancellation of policy for fraud.

Anyone truly planing on being “forgetful” had better not ever “remember” and especially not on a public Internet forum.

Hope you don’t still have those policies and expect them to pay out someday. The post is enough to have them nullified.
 
But more importantly, there is no two year limitation on cancellation of policy for fraud.
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Many policies have an explicit two-year incontestability provision.
 
texasag93 said:
I am 47, the policy was underwritten when I was 44.
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I'm 44 (with IR and >500 hours) and looking to up my coverage. I have a 700k ROP policy (is that a good deal? /derail) and a term policy that I pay WAY too much for (300k at $82/month /gasp), both without flying exclusions, both obtained well prior to becoming a student pilot. What was the term on your $2M for $2k/year policy? I might want to give them a call!
 
I bought a ten-year term life policy that does not exclude flying. The coverage is for $1m. I chose the ten-year term, because by that time I expect to have written enough to guarantee a livable income for my wife should I pass. When the ten-year term is up, I will consider my needs again. I hate that I have to pay it, but it isn't money wasted. It's money spent to protect those I care about should I die.
 
ChrisK said:
I'm 44 (with IR and >500 hours) and looking to up my coverage. I have a 700k ROP policy (is that a good deal? /derail) and a term policy that I pay WAY too much for (300k at $82/month /gasp), both without flying exclusions, both obtained well prior to becoming a student pilot. What was the term on your $2M for $2k/year policy? I might want to give them a call!
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20 year. I am in good health, I was about 15 pounds heavier than I am now when it went into effect. My broker is in NYC. He wrote my wife's disability policy and that is why I went to him, my insurance was an afterthought.
 
TCABM said:
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.
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Just an FYI... if you pass during the term of your whole life, universal life, etc. contract. The insurers will only pay the death benefit. Your heirs don't get the cash value of the policy. ;)
 
Rykymus said:
I bought a ten-year term life policy that does not exclude flying. The coverage is for $1m. I chose the ten-year term, because by that time I expect to have written enough to guarantee a livable income for my wife should I pass. When the ten-year term is up, I will consider my needs again. I hate that I have to pay it, but it isn't money wasted. It's money spent to protect those I care about should I die.
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My wife does not need my income, as it is zero.

If something happens to me, she will need to hire help at the house to allow her to continue to work. That would not be cheap.
 
The original question was is it worth it. The answer depends on your personal situation. If you need life insurance, than you need it to cover an aviation accident.

I have policy that covered me through the years when my children were growing up. Because I have a special needs adult, I will carry a policy for a very long time. Most will not have to carry it as long as I will.
 
You can almost always discontinue term just by not paying the premium. I paid for about 15 years out of a 20 year term because if something happened to me or my wife or both of us, we wanted the kids to be taken care of. When they moved out on their own, there became little need for it (we were secure enough financially that my wife didn't need my income or vice a versa), so I let it go.
 
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