Most people strive to care for their families and loved ones as best they can. But what about after you’re gone?
Buying life insurance is the best way to continue to care for your family even after you’ve passed on. If you die without life insurance, your family could be strapped with hundreds of thousands of dollars of unpaid debt and no resources.
If you’re a pilot, then obtaining the right coverage for your family can be a little more complicated. Life insurance for pilots isn’t necessarily going to cost more, but there will be a few hoops to jump through.
Even though people are more likely to die in a car accident than a plane related crash, the insurance industry is still a little scared of flying.
Here are some of the different experience you might have, depending on what type of pilot you are.
Problems with life insurance for pilots
When you begin the application for life insurance you will have to fill out a form that will assess your risk level. An insurance underwriter studies your application and considers your current state of health and your occupation.
Some companies still wrongfully consider flying to be an excessively dangerous activity. They may reject a pilots application outright.
Some companies may just exclude aviation from your coverage. That means if you die in a plane related accident then your insurance wouldn’t pay a death benefit.
You don’t necessarily have to deal with this type of treatment. In fact, you can get a good deal with the right broker. Doing a simple life insurance assessment can give you a good idea of what kind of coverage you can get.
Why pilots should work with brokers
Insurance agents are beholden to a specific insurance company. But an insurance broker works primary for you and is able to shop around and find you the best deal. This freedom is especially important when considering life insurance for pilots.
A broker will be able to help you manage the varying factors that will affect your premiums and potential coverage. Things to think about are:
- your level of training
- your history and experience
- whether you fly commercially or recreationally
- what planes you fly
Obtaining life insurance for anyone can be a daunting task and most Americans don’t understand the process. Securing life insurance for pilots has an added layer of difficulty, so let an experienced broker work on your behave to ensure you get the deal you deserve.
The type of coverage you are likely to receive is affected by the type of pilot you are. Here are some of the major differences between commercial pilots, student pilots, private pilots, and crop pilots.
Commercial pilots will have the easiest time getting the right life insurance. As long as you are in good health and passed all previous background checks then you just get premium ratings.
Typically, these are all requirements for employment anyway, so commercial pilots don’t run into too many roadblocks.
Student pilots have a tougher time obtaining the coverage they want at a low price.
Because student pilots are seen as green and inexperienced, their potential risk is much greater. An insurance underwriter would most likely suggest starting with a standard rating which makes for a higher monthly payment.
Student pilots also are often charged a flat extra. This means that they will be charged extra per $1,000 of insurance. This is to cover any special hazard or risk presented by aviation or extra-hazardous activities.
Private pilots have a good chance of qualifying for premium coverage rates if they fall within certain guidelines.
If a private pilot has:
- reached a certain number of private total flight hours
- an IFR certification, although not all insurance companies require this
- stayed within the specific hours of flight indicated by that insurance company
then they stand a chance of getting rates as good as any non-flying normal healthy person.
Having the IFR certification will really help your application. Also, staying within the range of 20-300 hours of flight is typically the expectation laid out by insurance companies.
For crop pilots or crop dusters, there is a bit of variance between insurance companies. The insurance company will most likely want to know what kind of plane you fly, the number of hours you spend in flight, and your past training and certifications.
If your aircraft was built specifically for crop dusting then your rates are likely to be better. If you have simply modified an aircraft for crop dusting then you might not fair as well.
Crop dusters often are asked to pay the same flat extra that student pilots are. There is some variance as to what that amount will be. It is generally somewhere between $5-$7 per $1,000 of insurance.
Advantages for pilots
Not everything about being a pilot will be a disadvantage for you when you start the process of obtaining life insurance.
Becoming a pilot is a difficult task. There is a lot of training and education that is required before someone is allowed to operate such a large and complicated machine.
Pilots tend to be higher educated than the average person. Because becoming a pilot is a strenuous and time-consuming task, people who can complete the process tend to be more disciplined and healthier individuals.
You also need to be in excellent health to operate a plane (especially if you’re a commercial pilot). Some insurance companies have realized this and are giving pilots discounted and excellent rates.
What to do next
Getting life insurance for pilots can be a complicated task. But it’s not something you want to put off. Ensuring the future stability of your family is an important and responsible undertaking.
Working with a broker who is familiar with the specific obstacles of aviation will significantly increase your odds of getting a good deal.
Getting life insurance is an important step in caring for your family and your legacy. Don’t be daunted by the uncertainty of the process and get answers today.
Contact us today to begin the conversation about your life insurance coverage.