I have a client that is 76, the kind of guy that I envy at 18 years his junior. He skis the Rockies every year and is still an instrument rated private pilot, and an active business owner.
The last two business life insurance policies we got him at ages 70 and 71, we were still able to get him full aviation coverage with no flat extra charge for aviation and no exclusions. He no longer needs the business life insurance (and they are no longer convertible). He does want to buy an estate tax life insurance policy. His health is great and we are able to get him great rates on permanent coverage, but at 76 we have run out of companies that will write him a policy without an aviation exclusion.
Not knowing what to expect I called on my colleagues at the Travel Insurance Center today to provide a quote for $1 million of accidental death that would cover his ongoing aviation. Knowing the insurance companies stance of not wanting any part of it I was kind of expecting him to get socked pretty hard. It came out to $1273.00 a year. I am still a big advocate of having life insurance cover it all when possible but, well, this is a great offer underwritten by a reputable company.
Some of the other situations we have been able to get great accident policies on are student pilots, a skydiving instructor who also flies a jump plane (highly rated with traditional life insurance) and civilian contractors working in Afghanistan. You can get quotes yourself by submitting a quote request through their website.
These guys, even if they have to go through Lloyds of London can get coverage for any kind of activity or adventure you have in mind. I had one client who spent $105 to give his wife peace of mind when he and his son decided to take skydiving lessons. We have provided travel coverage for a group backpacking through Europe and for a worldwide company that wanted kidnap, ransom and extortion coverage for their employees that had to go into dangerous areas.
Bottom line. There are prudent and reasonable situations to consider policies that don’t cover everything, but do cover exactly what you want.