Fact CheckedIf you’re looking for life insurance for pilots, chances are you work in the aviation industry or fly recreationally and are concerned about the cost of your life insurance.
Who could blame you?
We’ve all heard about tragic crashes and the devastating aftermath.
The good news is, flying is very safe. An app called “Going Down” shows just how secure commercial aviation is. You can install it on your iPhone.
Here’s an example – and if these numbers don’t make you feel secure, I am not sure what will:
“GULLIVER will soon fly from Heathrow to Milan on a British Airways Airbus A319. That flight has a one-in-4.8m chance of crashing. Shortly after he is jetting from Heathrow to JFK on a Virgin-operated A330. Chance of crashing? One in 5.4m. That means that he could apparently expect to fly on the route for 14,716 years before plummeting into the Atlantic.”
Life Insurance for Pilots: What Are Underwriters and Why Do They Matter?
Life insurance is essential for anyone with a family, including airline pilots.
Who doesn’t want to go to bed secure in the knowledge their family is protected if they die in an accident?
I usually recommend term life insurance for pilots because it’s affordable, flexible, and provides the safety net they want.
If you opt for traditional coverage, the next step is a medical exam to determine your rate.
The information from your medical exam and the answers to your questionnaire are sent to an underwriter. They assess all the data and assign you a rating.
This rating establishes the amount of money you pay monthly for the coverage.
NOTE: Your agent asks you several lifestyle questions. This information helps underwriters decide whether you pose a higher risk because of your work or recreational choices.
One of your questions is whether or not you pilot a small plane. So yes, flying does impact how underwriters view your application.
Life Insurance for Private Pilots
“In Canada the accident rate for private (including corporate) planes was 28.4 per 100,000 flying hours in 2002. That rate is much higher than the rate for commuter planes and airliners but the rate has been dropping over the years.”
“According to a 2002 TSB report, “the generally accepted factors that contribute to these higher accident rates include less stringent aircraft certification standards, reduced pilot training requirements, lower pilot experience, higher instances of single-pilot operations, greater proportions of time spent in low-altitude VFR operations, and more frequent use of small airports and landing strips that are not equipped with navigation and landing aids.”
Check out the numbers above. You can see it’s more dangerous to pilot a private plane.
Life insurance companies are in the business of making money. Their underwriters assess the risk to insure you.
If you participate in “risky” activities, your premiums will be more expensive.
Considering this, it makes sense that flying small planes impacts your rates. Underwriters review each case on its merits, so many variables exist here.
Are you a well-seasoned pilot? Where do you fly? These are the types of considerations evaluated for life insurance for private pilots.
Companies like Ivari Insurance have an aviation questionnaire that nails down your circumstances. They want to know things like:
- What sort of licenses do you have
- Why do you fly – Pleasure or work
- What type of aircraft: plane, helicopter, balloon, glider, etc.
- Do you fly over land and sea
- Have you had an accident
- Do you fly in and out of uncontrolled airports
- Do you have any medical issues
- When did you last fly…when do you plan to fly next
Life Insurance for Helicopter Pilots
Helicopter pilots often face dangerous working conditions such as flying in adverse weather, remote areas, or high-risk missions like search and rescue or aerial surveying. Securing adequate life insurance for helicopter pilots is essential to protect the pilot’s family financially and loved ones.
However, obtaining life insurance as a helicopter pilot can be more complex than for individuals in lower-risk occupations. Insurers may charge higher premiums or impose coverage restrictions due to the increased likelihood of accidents. Specialized policies tailored to high-risk professions can offer comprehensive coverage, ensuring that a pilot’s unique needs are met and giving peace of mind to their family in case of a tragic event.
For Canadian helicopter pilots, life insurance is essential to their financial planning and overall safety net.
Traditional Life Insurance for Pilots
If you fly a small plane or helicopter, you’re guaranteed to be rated by any traditional life insurance company. This means you’ll pay more than the average person who isn’t a pilot.
It’s all statistics. Insurers view piloting small aircraft as a high-risk activity. If you think that means your insurance will cost more, you’re right!
As I mentioned, if you apply for traditional, fully underwritten life insurance, you’ll fill out an aviation questionnaire. Ivari’s asks: “If the insurance applied for requires an extra premium or a protection restriction because of aviation, which do you request?”
They’re saying, ‘Pick your poison’: Do you want to pay more for insurance or have it issued with a flying exclusion?
An exclusion means your life insurance won’t cover you should you happen to die while flying a small plane.
With traditional coverage, non-commercial pilots will likely have to pay 50-100% more for their insurance than a civilian non-pilot. So, if the standard rate is $100 per month, you’ll pay $200.
Is there another option? Yes, welcome to no medical life insurance.
A no-medical life insurance policy has a risk factor built into the cost and it’s usually more affordable than a traditional policy that’s rated.
How does it work? You answer a series of health and lifestyle questions that determine what coverage you’re eligible for. There are absolutely NO medical tests.
Take Canada Protection Plan, for example. It’s one of Canada’s best-known non-medical carriers.
On their application, you’ll see a question worded like this: Within the past 24 months, have you operated an aircraft as a pilot (scheduled commercial pilots excluded) or been involved in any hazardous sports, or do you plan to do so in the next year?
As a small aircraft pilot, you’ll answer “yes” to this question, but guess what? You’ll still be eligible for CPP’s most affordable non-medical insurance. This coverage does NOT come with any exclusions and Depending on your age, you can purchase up to $500,000 of guaranteed term life insurance.
In other words, you are protected whether you flying your plane or driving to the mall.
That’s why working with an independent life insurance agent is so important. At Policy Architects, we know all the angles to find the best solution for you.
Airline pilot life insurance isn’t a no-brainer, so it’s essential to do your due diligence and prepare.
Life Insurance for Pilots: Commercial Flights
So, what about commercial pilots? As you can see from the numbers I used above – commercial flights are exceedingly safe.
Your chance of dying in a fiery wreck is infinitesimally small. This means good news for pilots flying major routes with Air Canada, American Airlines or any other large carrier! It’s doubtful your job will impact your premiums.
That said, there are some minimal exceptions. If you fly cargo or charter routes and land and take off in unregulated airports, that will affect your premiums.
I’m comfortable saying that being a commercial pilot will, for the most part, not elevate your premiums.
Air Travel Life Insurance
Air travel life insurance – are you protected when you fly?
Although commercial flights are very safe, accidents happen, so many people want to know if air travel life insurance exists. It’s one of those things clients don’t want to think about, but accidents do happen.
There has been a recent spike in aviation-related incidents that spur concerns in the general population.
Unfortunately, things tend to go very wrong when there is a mid-flight issue. Typically, no one gets out alive, and we all know that.
If you’re a pilot or a passenger on a plane that crashes, rest assured there is protection, even if you don’t maintain life insurance.
IMF Special Drawing Rights give families about USD 156,000 per seat. This doesn’t consider unlimited monies received if the airline is at fault for the crash. For more information, check out the Montreal Convention.
That said, this doesn’t eliminate the need for life insurance. It’s better to have full coverage than to rely on the “air travel life insurance” offered by the IMF in times of crisis.
Chances are this figure will also leave you struggling. It’s not a lot of cash.
This is Why You Should Contact Policy Architects TODAY!
If you’re looking for life insurance for pilots…
…or you’re considering air travel life insurance because you’re going on a trip – it means you’re thinking about the future.
That’s where an independent life insurance agent comes in. We make sure you get comprehensive and affordable coverage.
No one plans to have an accident, so why not hammer out all these details before a crisis occurs?
If you’re a pilot looking for affordable coverage, whether you fly commercial jets or small hobby planes, reach out to Policy Architects today.
