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  #1  
Old 12-06-2011, 02:21 PM
1911pilot 1911pilot is offline
 
Join Date: Mar 2005
Location: Las Vegas
Posts: 149
Default Life Insurance Aviation Exclusion?

Hey guys and gals, long time no post.

Life got in the way of the project again and I'm probably going to be pounding rivets in about 6 months or so again. At any rate Its time to get life insurance since I've got a little one on the way and I'm trying to figure out exactly what I need. I did a search and I couldn't find anything that seemed to relate to this.

I'm being told that I either need to fly 50+ hours a year or take an aviation exclusion on my policy. Unfortunately I do not fly right now so we are talking about a couple thousand a year instead of ~500 a year for the policy. (I intend to start flying again after I get my finish kit, I've come to terms with this being a 15+ year build...)

I've been thinking about it and wondering that maybe the aircraft insurance would cover it after I start flying. I was told that I could do a 10 year term and then renegotiate at the end of it to include aviation if my hours were up to snuff. My thoughts on that are that in 10 years I could possibly end of being SOL for life insurance after that if something bad happens.

Any thoughts on this? I know there are a couple insurance guys lurking around here. I'd appreciate any thoughts.
Thanks
Jeff
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  #2  
Old 12-06-2011, 02:30 PM
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NovaBandit NovaBandit is offline
 
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Location: Hastings, MN
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The first thing I did when I started flight training was call my life insurance company to confirm that there were no exclusions for single engine or other private aircraft.

The response I got was that the only exclusion was flying on military aircraft.

But I have heard second hand that many other companies won't pay out benefits at all to families of those involved in single engine aircraft accidents.

(BTW, my policy is through Minnesota Mutual Life)
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  #3  
Old 12-06-2011, 02:38 PM
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Brantel Brantel is offline
 
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Location: Newport, TN
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Don't believe anything anyone "tells" you. Your actual policy is the final word on this subject. A ton of typical term life insurance do have an exclusion that will prevent coverage if you are killed while PIC in anything.

There are policies that do not have this exclusion but you better double check the fine print! There are those that are designed for pilots that are just fine.

There is also a difference in riding in an aircraft as a passenger and being PIC. Make sure your policy is clear on the difference. Some even call out experimentals as well.
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Last edited by Brantel : 12-06-2011 at 04:10 PM.
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  #4  
Old 12-06-2011, 02:49 PM
senof28 senof28 is offline
 
Join Date: Dec 2007
Location: Atl
Posts: 34
Default PIC Life Insurance Question

Several large carriers DO NOT exclude personal private aviation. They limit TOTAL number of hours. Seek out a life agent or financial planner who uses a life insurance BROKERAGE CO like CRUMP LIFE. Be specific in what you want, make the application COD so that you can read the contract. ALL insurance contracts have a section called "exclusions and limitations". READ IT. If anything makes you uncomfortable challange it. If it looks good pay the premium to activate it.
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  #5  
Old 12-06-2011, 03:19 PM
senof28 senof28 is offline
 
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Default Life Insurance-additional info

The carriers limit total number of HOURS per year.
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  #6  
Old 12-06-2011, 03:29 PM
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NovaBandit NovaBandit is offline
 
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Quote:
Originally Posted by Brantel View Post
Don't believe anything anyone "tells" you. Your actual policy is the final word on this subject. A ton of typical term life insurance does have an exclusion that will prevent coverage if you are killed while PIC in anything.
That's a good point.

I only called an agent after reading my policy and not seeing anything related to aviation.
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  #7  
Old 12-06-2011, 04:25 PM
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Greg Arehart Greg Arehart is offline
 
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Sad story. My wife's great uncle was an avid flyer until about 1952 (I've seen his logbooks, flew all sorts of stuff and could remember the details up until he died a couple years ago at 100), when the life insurance company told him he couldn't fly and keep the insurance, so he quit flying. His only flight after 1952 was for his 99th birthday four years ago in my C172 (before I had the RV done, and he probably couldn't have gotten into the RV anyway). He said that last ride was one of the best things that had happened to him in years (and not because of my piloting skills).

[rant about insurance companies deleted].

greg
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  #8  
Old 12-06-2011, 04:52 PM
WhiskeyMike WhiskeyMike is offline
 
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Location: WA State
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Insurance (contract) law has evolved considerably since the first half of the 20th century. Modern life insurance works differently. For example, if you buy retail life insurance before you decide to become a pilot you are fully covered by the policy, with no exclusions, for any aviation activity you subsequently begin (even high risk activities like racing or crop dusting). If you’re already a pilot there are a good selection of highly rated companies that will offer full coverage with no exclusions and no extra premium. Aviation criteria vary quite a bit between carriers, and this provides a pretty wide range of options that can accommodate just about any level of flying experience. The advice given previously about finding an experienced life insurance broker to work with is the best way to achieve your goals.
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  #9  
Old 12-06-2011, 05:10 PM
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Neal@F14 Neal@F14 is offline
 
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Location: Wichita Falls, TX
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Quote:
Originally Posted by Brantel View Post
A ton of typical term life insurance do have an exclusion that will prevent coverage if you are killed while PIC in anything.
Most every standard term life policy that I've ever read has an exclusion that pretty much states (paraphrased) "Acting as a crew member or passenger in any aircraft other than a scheduled commercial airline"... So even just riding in someone else's general aviation airplane that crashes gets excluded... and that if it's an experimental aircraft would likely make the insurance underwriter's eyeballs roll even further back into their heads.

Of course, there does exist insurance that covers flying in private aircraft but you've got to look explicitly for that and it costs more.
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Last edited by Neal@F14 : 12-06-2011 at 05:12 PM.
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  #10  
Old 12-06-2011, 07:00 PM
Mile High Relic Mile High Relic is offline
 
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Quote:
Originally Posted by rvmike View Post
All great respones, But I always looked at life inurance that your going to die and you are betting against yourself. Flame on
Not a flame, just another perspective.

If Life Insurance is a bet, it is a bet you hope to lose. Really though, it is just a tool. It may or may not be the right tool for you.

Life insurance is all about transferring risk. For $XXX per year, you transfer your dependent's risk to an insurance company. If you have no dependents, then carry on.

Remember, there are lots of ways to die besides an airplane accident, and if any of those leave your wife/kids in a world of hurt, insurance may be helpful.

My Brother-in-Law died suddenly with no Life Insurance, and my Sister had to sell the house, sell a car, and move. Life Insurance would have helped.
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