Purchasing Life Insurance for Pilots With Preferred Best Rates!
Submitting an application for life insurance for pilots and landing a Preferred Best rate classification is actually very common. Especially when applying with the proper life insurance company, having experience and holding an IFR certification. If you are a pilot planning on purchasing life insurance, we will cover everything you need to know so you can purchase the policy for your specific needs with a highly trusted and competitive insurer.
Aviation life insurance is one of our specialties and we know how to help airplane and helicopter pilots receive the best rates.
Table of Contents
- Life insurance for private airplane pilots
- Purchasing pilot insurance with an aviation exclusion
- Two conditions to avoid in a pilot life insurance policy
- IFR Certifications and Super Preferred rates
- Commonly asked questions from the carriers
- Life insurance for student pilots
- How to apply for life insurance for pilots
- In Conclusion
Many people believe that being a pilot will place you in a high risk category with high rates. Nowadays you can get excellent rates when you are applying with the correct companies that do not fear aviation. Years ago anything involved with aviation was simply considered high risk. Fortunately, a lot has changed since then.
This concept on the other hand can also be a flop if you are not working with an experienced broker otherwise known as an independent agent. Your agent must be experienced in aviation and having you apply with one of the most applicable life insurance companies. Any way you look at it, you have to do your homework.
All the life insurance companies underwrite their applications differently. Some have no qualms with aviators and some do not prefer to pursue insuring private or commercial pilots. Using the correct carrier is vital.
How does applying for life insurance for pilots differ from other occupations or hobbies?
In reality there is actually very little difference securing life insurance for pilots or some of the other high risk occupations or hobbies. Pilot life insurance applications can usually be a little more involved. The only exception is that the insurance company takes on an additional risk due to flying. The life insurance application will have a section for what the industry refers to as hazardous occupations and sports. The aviation related licensing for pilots is very important when applying for pilot life insurance.
There will be questions which will refer to the flying of airplanes, jets or helicopters on a professional or recreational basis. It will work exactly the same as Motorsports racing or Skydiving for example. Naturally some of the questions pertaining to flying would be a little different and a little more involved regarding aviation training and certifications.
Some of the carriers will allow you to exclude the actual flying coverage from the policy. If you feel comfortable applying for pilot life insurance with an aviation exclusion attached, you can do so. An exclusion will allow you to apply and a have no reference to flying any type of aircraft. With this exclusion, there will be no coverage for a fatal crash. Not all companies offer these aviation exclusions.
Some pilots want to purchase life insurance and are not worried about the possibility of a fatal crash. Having an exclusion will eliminate the possibility of any additional cost in the policy for the aviation risk. This is something you have to carefully consider before you sit down and apply.
What is the actual definition of an aircraft pilot?
Being an aircraft pilot is basically anyone that operates a flying machine such as:
- A private airplane
- A commercial airplane
- A hang glider
- Hot air balloon
- Dirigible (Blimp)
- Rocket powered aircraft
- Paying a “flat extra” fee in addition to your standard premium.
- Having any “exclusion riders” that would eliminate coverage while you were flying your plane.
A flat extra fee would be an additional charge in addition to your regular life insurance premium. This would be a flat dollar amount such as $2.50 for every $100,000 of life insurance coverage. This can get very expensive especially if you have a high face amount such as $500,00 and up. If a pilot has very limited experience flying, a flat extra fee sometimes can’t be helped.
The best life insurance for pilot policies have no exclusions or extra fees. If you have sufficient experience and are in good health, there will be no reason to have either one.
The difference between a private pilot and a commercial pilot
There is not very much difference at all because you are still undergoing the threat of a fatal crash. A commercial pilot will usually have the most experience in the air and in many cases the most training. The side effect of being a commercial pilot is the greater the odds of having a fatal experience due to flying on a daily basis. The private pilot that flies for a hobby usually has much less time in the air but has a small single engine aircraft that may have more chances of mechanical failure.
Experience and training play a big part in the underwriting process
In most cases a simple supplemental application is required to answer some additional questions. This would pertain to specifically what you fly, experience level, certifications and how much you actually have flown in the past. Usually the more experience you have the better and the more training you have the better also.
When a problem occurs to simply have to make a quick reaction know what to do without panicking. This is where the experience and training can really save your life and the lives of your passengers. Investing is any available extra training could become a real lifesaver and make a considerable difference in getting the best rates.
Being a private pilot that holds an IFR certification (Instrument Flight Rules) are going to be classified as a preferred rate class with most of the life insurance companies. If you do not already hold this certification, I highly recommend taking the classes to achieve this rating. It will pay off in your overall safety as a pilot and it will also make a big difference getting the best rates possible.
If you are a private pilot with the IFR certification then please be sure your insurance agent is aware of this information. Once you go to apply, make sure the life insurance company you are applying with understands your certified for instrumentation. I have seen many pilots receive Preferred Best rates when they were certified and were in excellent health.
The definition of Preferred Best rates is simple. These are the lowest rates you can possibly receive.
What is your level of flying experience?
This will usually entail how many hours to you have under your belt flying the type of aircraft you normally fly?
How much formal training do you have?
This would include formal training in an airplane or jet, in a classroom or in a military training exposure.
What types of aircraft do you fly?
This could range from a commercial Boeing 777 to a small single engine Piper Cub.
Do you fly airplanes on a commercial or recreational level?
Normally a commercial pilot flies everyday for a living which can increase the odds of a serious or fatal crash. A recreational pilot flies periodically whenever he desires to which means lower statistics for accidents.
Receiving the best rates will depend on a number of important factors
Keep in mind that all of the other questions in the underwriting process will be taken into consideration such as:
This would include all known medical conditions just as it would apply to any other life insurance application. You do not get penalized any more because you happen to be a private pilot or commercial pilot.
Your date of birth is the number one factor that your premium is based on.
The insurers want to see if you are a safe driver and check for DUIs, DWI and reckless driving related infractions.
Do you smoke or use any form of tobacco, not just cigarettes. Any form of tobacco has to be taken into consideration as with all life insurance policies. Smoking cigarettes have a major impact on your rates. Life insurance for smokers can cost over 300% more than those of a non-smoker.
This would be for checking on genetic illnesses that could be passed down such as Cancer or Heart Disease. This would be especially for your parents if they passed before age 55.
As a rule, private pilots and also commercial pilots are in excellent physical and mental health. This is naturally required to maintain your pilots license. This good overall health can help you qualify for better life insurance rates.
Using medication that can change your mental or physical reaction times can play an important role. For example a medication that can cause nervousness or becoming sleepy could be a problem in the air.
Life insurance for Helicopter Pilots
Purchasing life insurance for helicopter pilots is going to be virtually the same procedure as life insurance for airplane pilots. This risk for the life insurance company will be close to the same. Life insurance for helicopter pilots can still be considered a higher risk category especially with little to no real experience.
Periodically we hear about helicopter crashes because they usually fly at lower altitudes in more congested airspace. As you know, flying helicopters in a city usually has more dangers than flying in wide open country areas.
Helicopter crashes have a higher rate of fatalities than airplanes!
They also have more of a chance on hitting objects that are fixed to the ground. Some of these would be cell towers, mountains, lighting towers, bridges and radio broadcasting towers. They also will be involved in foggy conditions because they are much lower to the ground than airplanes.
Due to the large and wide propellers the helicopter have. Helicopter pilots sometimes don’t realize that their props will not quite clear an object protruding from the ground. Such as towers, trees and mountains and have a mid-air collision especially if the visibility is poor.
Student pilots purchase their life insurance in exactly the same fashion are a highly experienced pilot would. The only difference is the inexperienced student pilot cannot apply and qualify for preferred rates like the experienced and certified pilots can.
Most of the time the student pilots will receive a “standard” rate classification and will most likely receive a flat extra charge also. At this point in time they are considered a high risk student pilot with little to no flight experience. This will change as their flight time increases and their training continues.
Most of the time they will receive a flat extra charge of $2.50 per every $1,000.00 worth of coverage they apply for. This would simply add up to $250.00 for a $100,000 policy. It can get expensive if the student pilot applies for a high face amount policy such as a million dollars or more.
A flat extra charge can always be removed from the policy later unless for some reason the student pilot continues to be considered a high risk pilot. We usually have the pilot re-apply with another carrier after they exceed 500 hours behind the stick.
Make sure your premium fits your budget!
This is just common sense but life insurance premiums are like any other type of expense, they always keep rolling in like clockwork. Take your budget into consideration so you do not purchase a policy with a premium that could become a financial burden later.
If your premium for whatever reason does become a problem, the life insurance companies could reduce your face amount or term period so the premium can be lowered. If you need any help choosing the proper face amount, don’t hesitate to contact us for help. Even though pilot life insurance many times does not cost any more. You still want to make sure you can comfortably pay your monthly premiums.
We always recommend completing the form on the right and running our websites quoting system. This will give you an idea of all your options and life insurance rates for your age. This will also help you decide how much of a face amount you can afford to apply for. Our modern application system consists of the most simple and quick application process in the industry.
We use the new high tech SnapApp application system. This refined telephone application will save you time and allow you to explain all your answers to the questions.
Don’t hesitate to call us with any questions you may have concerning life insurance for pilots. There is no cost or obligation when working with an experienced independent agent. You may contact us 7 days a week for answers to all your questions. See how easy it is to get preferred rates for private pilots and commercial pilots as well.
Another good article for you to read is our getting started page. I hope this blog post has helped you learn more about obtaining pilot life insurance. It is actually very simple and much easier that you ever thought.
All the best,
Schedule a specific time at your convenience to discuss all your questions concerning life insurance with no cost or obligation.