Life Insurance

[MHemperly]

What are you guys doing for life insurance? 

I’m 33 non smoker and I’m in good health. What are your guys doing in this department that has good rates and no aviation exclusions? 

I’m a commercial pilot with SEL & MEL, Instrument and live in Henderson NV-sometimes this matters. 

Thought this might be a good topic. 

Mike

 

Edited May 6, 2019 by MHemperly

[carusoam]

Kind of a very personalized question...

Who or what will you be leaving behind...?

Will their college bills get paid through this insurance payout?

One has to consider who will profit after your demise...  how much do you trust them? 

 

Did you have a more specific question in mind?

Like where is the best place to buy a 1kamu policy?

Who has the best rates?

 

Or are you hoping to hear similar people say... ‘I don’t buy that because....’

 

See what a financial advisor might say... we have one around here, @Seth?

Our Most knowledgeable insurance guy might have a suggestion for that type of insurance, @Parker_Woodruff?

 

Being the old guy... health insurance is the more important question...  same sort of questions go with that too...

 

PP thoughts only, not a financial advisor at all...

Best regards,

-a-

[kerry]

AOPA

[Skates97]

There are a lot of different opinions and answers out there. I sold life insurance for a bit quite a few years ago.

My personal opinion, at your age, find a good 30 year term policy. 'Theoretically' you shouldn't need life insurance by the time you get to retirement as the point of it is to replace the lost income that you can no longer provide as a result of your untimely death. By retirement one 'should' have enough that should they pass away, whoever is left will still be taken care of.

To figure out how much I need, I looked at all of the debt (mostly a mortgage) and wanted enough that everything would be paid off and there would be enough left over to invest and allow my wife to raise the family off interest that it would generate.

I know this doesn't apply to you, but those of you that already have a policy before you begin your PPL training and flying, take a look at the exclusions. Chances are that if you have had the policy for a couple of years that it will not exclude death as a result of a GA accident or other risky activity. Most policies will pay for any cause of death (including suicide) if it occurs after two years since the policy was purchased

[Vance Harral]

I've been pretty happy with PIClife: https://www.piclife.com/

Bought a 20-year term life policy 10 years ago.  As Skates97 says, by the time the term is up, I won't need the life insurance any longer.  No aviation exclusions on my policy.

Note that PIClife is essentially a broker, they work with different underwriters to find you a policy.  My underwriter is Lincoln Benefit Life.

[Parker_Woodruff]

1 hour ago, carusoam said:

 

 

See what a financial advisor might say... we have one around here, @Seth?

Our Most knowledgeable insurance guy might have a suggestion for that type of insurance, @Parker_Woodruff?

 

 

I'm not a licensed life insurance agent, but PIC life did get me a good quote

[MHemperly]

You raise some good questions @carusoam. Should I find myself above the flight levels I’ll be leaving behind a Wife and two kids. I think I can trust her  haha just really asking the question of who most pilots are going through to purchase a term policy.

@kerry I thought about that... I let my membership lapse so maybe now is a good time to call and renew and shop through them? 

@Skates97 that’s exactly what I want the policy for. Enough to cover mortgage and some extra to buy my wife some time to get it together should something happen. 

@Vance Harral & @Parker_Woodruff thank you for the referral. I will contact them and see what they have to offer

thanks guys for not only giving me some direction but also making sure I’m asking myself important questions

Mike

[Wistarmo]

Agree completely with Skates97. Life insurance is not a retirement vehicle, but to replace your lost income during your working years. Would get a term policy. 

[steingar]

I never liked life insurance.  Seemed like a really bad bet, i.e. if it paid off I wouldn't be around to collect.  Then again I never sired any yard apes.  Perhaps I'd feel differently if I had.

[jaylw314]

I bought a term life policy with Prudential about 15 years ago.  about $900 yearly for $1M for a 20 year term when I was in my early 30's.  At the time, my wife was not able to work for health issues and I wanted her to be able to keep the house if I died.  She's recovered since then and has been working, and we have enough save away that she'd be ok, so I'm debating whether it'd be worth extending it or not (it'd be a lot more now that I'm that much older).  No kids either.

When we bought the policy with Prudential, we double-checked to buy a policy that specifically had no GA exclusion (many do).

[81X]

USAA. Can’t say enough good things about them. Great service and rates, no aviation exclusion.  

[carusoam]

MS thoughts on life insurance...

1) The owner won’t be around to collect...

2) The intent is to replace income for the ones the owner leaves behind...

3) To be more specific... some of the lost income needs to cover things like college, the house, a couple of autos.... plus all that related  insurance... know your expenses, or know your income, or both... stretch that over time... with a rate of inflation....

4) making sure there isn’t an aviation not allowed phrase is important... USAA likes aviation customers....

5) you may reach a point in life when everything is paid for... the kids are on their own... the only thing left to pay for is a small box and a tiny piece of property with a stone...

6) There is a gamble... that seems to cost about 1 amu each year... As long as you have dependents,  it is a gamble worth considering...

7) Getting past the age of having dependents... that extra AMU each year can be applied towards the forever plane’s paint, engine, IP, speed trials, time to climb trials, weekend away fund...

8) Always consider insurance... it is possible to become too injured to work... but that is a different type of insurance...

PP thoughts only, a summary of what I learned here...

Best regards,

-a-

[Skates97]

1 hour ago, 81X said:

USAA. Can’t say enough good things about them. Great service and rates, no aviation exclusion.  

Over the years I've had them for Auto, renters, homeowners, and life insurance. Even when I was selling life insurance I couldn't match what USAA had.