Every profession has its dangers, but pilots especially face “work conditions” that affect their insurance rates.
Any “high risk” occupation insurance seeker will see higher premiums than the average person, but pilots especially can see some rather significant monthly premiums because of their chosen profession.
However, flying is only perceived to be dangerous; the reality is that a professional and responsible pilot is less likely to have an accident than someone driving on the roads for a living.
Red Flags for Insurance Companies
When applying for life insurance, the applicant must fill out a questionnaire asking for health and work related information.
This is the information, often along with an actual physical, the insurance companies use to provide a premium to the potential client.
For some insurance companies, perceived dangerous occupations, such as being a pilot, set off red flags for the risk department and premiums rise accordingly.
Offsetting the Red Flags
Luckily, not all insurance companies are created equal. There are companies that are more familiar with professionals in the aviation industry and these companies do not set excessive premiums simply because the applicant is a pilot.
Instead, the company will base its premiums as it would for any transportation professional, meaning they use experience, past history, and equipment as the basis for rates instead of putting everyone in the same category.
Some of the factors that can offset a higher premium are:
1. The type of plane being flown on a regular basis. For instance, someone flying a commercial jet should receive lower rates than a less stable aircraft. Are you over the age of 60 and flying regularly?
2. The length and type of training and experience. A more experienced pilot with thousands of hours in a particular aircraft would receive lower rates than a new pilot just starting out.
3. The kind of flying you are doing. Meaning, are you flying commercially on a regular basis or are you flying occasionally for recreation and/or personal travel. These factors along with how often you are actually flying will affect the premium.
These are all things to consider when shopping around for life insurance for a pilot. If you see one set rate, you can be almost positive that pilot life insurance is not something this particular company specializes in or has a lot of experience with.
In fact, the more questions the company asks about particulars regarding your flying, the better off you may be in securing a reasonable life insurance rate.