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Though the risk of a plane actually crashing is much lower than a car crash, the odds of surviving a plane crash are much lower. For this reason, life insurance for pilots comes at a great expense. When a policy is affordable, it often has a rider stating that if the pilot dies in a plane crash, the policy is voided.
It's not just career pilots that pay dearly for life insurance policies. Hobbyists also pay through the nose because they simply love the sensation of flying a plane. Life insurance companies feel the chances of dying while flying are much higher and therefore charge extra to the people they feel are high-risk.
When signing up for a life insurance policy, as boring as it may be, it is critical that you read the fine print before you sign. If there is an aviator exclusion rider, you are best off looking elsewhere. There are companies that will offer insurance to pilots, but they'll require a higher monthly payment. For the most part, you should expect your insurance rate to be approximately three times the average rate for a healthy adult male or female.
Insurance agents use what is called a Life Insurance Mortality Table to come up with average rates. This table takes your age and calculates how many years you have left to live if you live to the average life expectancy. For pilots and others in high-risk jobs or with high-risk hobbies, this table can change drastically. The lower the numbers, the higher your insurance rates.
Many insurance companies believe that all pilots should be grouped together into one risk group. We all understand that this is unfair. Pilots with more experience are less likely to crash a plane than someone on their first time out. Pilots flying large craft are probably less likely to crash than a hobbyist who goes out only once or twice a year. On the other hand, a pilot working too many hours is more likely to be in an aircraft accident than one who is well rested. There are many factors to consider, and few life insurance companies take these factors into consideration.
Use the Internet to your advantage. There are Web sites now that work with insurance companies to offer the best possible rates to pilots. You can answer a few questions, have them work with you to come up with a rate and then either enroll through their site or use the quotes to see if you can get companies to outbid each other. This is an excellent way to get life insurance coverage that fits your needs and your budget.