Having the right life insurance is a crucial aspect of financial planning for individuals from all walks of life, but for private pilots, it takes on a unique significance. The nature of this profession involves inherent risks and uncertainties, making it essential for private pilots to understand the intricacies of life insurance policies so they can find coverage that’s tailored to their needs. Let’s walk through aviation exclusions and how your career can affect underwriting guidelines so you can feel confident when shopping for a life insurance policy.
Why do private pilots need life insurance?
Just like any other type of professional, pilots need life insurance to secure their loved ones’ financial futures and provide them with peace of mind. Life insurance coverage may be especially important for private pilots because it can help replace lost income. Private pilots often have high earning potential, and their income may be crucial to maintaining their family's lifestyle. Life insurance proceeds can help supplement that lost income, ensuring that your family's financial needs are met and allowing them to maintain their standard of living.
What types of life insurance can private pilots get?
Private pilots can apply for a variety of life insurance policies, including whole, term, and universal coverage. Read on to learn more about each.
Term life insurance: A popular and affordable option for private pilots is term life insurance. This type of policy guarantees coverage and premium amounts for a specific period, such as 10, 15, 20, or 30 years. This option offers flexibility, as you can opt into coverage for only as long as you need it.
Universal life insurance: Universal life insurance policies provide lifetime coverage at a guaranteed premium rate and accumulate cash value over time. This flexibility allows pilots to adjust their coverage and premium schedules according to their changing needs.
Whole life insurance: Whole life insurance is another option available to private pilots. These policies not only provide a death benefit to beneficiaries, but some also pay dividends to policyholders. Whole life insurance offers a permanent coverage solution as long as premiums are paid and can serve as an investment tool with its cash value component.
Considerations for Private Pilot Life Insurance
Life insurance carriers consider a variety of factors when calculating policy premiums to create a risk profile, including your age, overall health, and occupation. Because careers in aviation are considered high-risk, your role as a private pilot will likely impact the cost of your life insurance rates. When evaluating your risk as a private pilot, insurance carriers will likely have career-related considerations when calculating your premium. As they determine your rates, carriers may weigh factors such as:
The number of hours you spend flying per year
The number of years of experience you have
The type of aviation license you have
The purpose of your flights
In addition to your health information, understanding the above factors allows carriers to assess the risks associated with providing you coverage. Depending on your professional demands and personal circumstances, carriers may offer you coverage but require you to pay a flat extra, which is an additional premium added to your base rates that accounts for the increased risk of insuring you as a private pilot.
Let SelectQuote Take the Guesswork Out of Life Insurance for Private Pilots
Navigating the life insurance shopping process can feel overwhelming, especially if you’re considered a high-risk applicant as a private pilot. Fortunately, SelectQuote can help take the guesswork out of finding the right policy. Our experienced licensed insurance agents will guide you through the application and help you compare rates from several of the nation’s most trusted carriers in just minutes. We make it easy to look for coverage that’s right for your budget, lifestyle, and occupation so you feel confident in your policy.
