Do pilots pay more for life insurance?

This is one of those life insurance questions that has been on something of a roller coast ride for the last 20 years. There was a long period when most life insurance companies were decidedly unfriendly to private pilots, but a handful of life insurance companies were out to capture your business with approvals at their two best rate classes. Then two of the leaders during that period got out of the private aviation business and left just a few that could fairly be described as friendly.

Is AOPA the answer?

The Aircraft Owners and Pilots Association has claimed to be the steady rock through all of the ups and downs with other companies, but the truth paints a different story. Along with the rest of the industry AOPA has had to adjust on the fly when they were dumped by one company and scrambled to settle with a new company. They offer group aviation coverage that offers decent rates if you want smaller amounts of life insurance. Depending on which group you qualify for you may be limited to to amounts that are lower than what you need or term lengths that don’t extend far enough. Their products are an option, but not the best option in most cases.

What are the requirements to get the best rates?

Life insurance underwriters want to know how much experience you have, your pilot rating (IFR, VFR, CFI, etc), and how much you fly on an annual basis (proficiency). Preferred rates can be found with as little as 100 total hours, a VFR rating, and at least 25 hours annually. For a 55 year old male, a $1 million 20 year term policy would be about $320 a month. If the same pilot had 250 or more total hours, an IFR or CFI rating and at least 50 hours annually the price would be $263 a month.

The good news

We are seeing more companies jump into the private aviation market each year, which will continue to drive prices down and choices up. In addition to the truly private pilot groups mentioned above, corporate pilots are catching breaks up to the best rate class with several companies now.  Hinerman Group has been a leader for 15+ years in helping pilots find the best life insurance rates available.

If you have questions, want to compare what you are currently paying as a pilot, or want quotes for whatever stage you are in your aviation journey from student to corporate pilot, call or email me directly. My name is Ed Hinerman. Let’s talk.