Life Insurance Dilema

If I read my altimeter as 10,000,000 ft when it's really only 1,000,000
feet, I'll have other issues to deal with.

It sounds to me like their actuaries never priced the risk, so they price it
out of the market.

"Skylune" wrote in message
lkaboutaviation.com...
Lets hope the same mistake does not occur using the altimeter.

Most life insurance policies have exclusions or addtional charges for high
risk activities, including sky diving and scuba diving. Their actuaries
know how to price risk.

Good question and one that I asked more than once. The explanations that I
received from several Northwestern reps were that the policy is written at a
specific point in time for a person meeting specific requirements. If I
meet the requirements of the policy when the policy is written and I meet
the requirements of the policy when I die they will pay out as long as I
haven't violated any other conditions of the policy. There are conditions
that I must report to the company if they develop or I partake in them, such
as skydiving, but resumption of flying was not one.

My case was that I had quit flying for 8 years between my private/instrument
and my commercial. I already had one policy and it was a big concern to me
when I bought my second policy. I was assured by not only the agent, his
supervisor, and the companies legal office that if I had noted that I had no
intention at that time of resuming my flying activities but then later
changed my mind and started flying again it would have no effect on the
coverage or the premium. Since then I have also reported my hours and
ratings when purchasing additional policies, there have been no increased
premiums due to any of my additional ratings or certificates.

YMMV
Jim

BTIZ wrote:

His current policy specifically
states "not covered while PIC."


That's actually sort of interesting. If he goes up as a passenger, no
matter who is flying, he is covered.

I have heard of some policies excluding any form of GA.

if I had noted that I had no
intention at that time of resuming my flying activities but then later
changed my mind

It's the "intension" part that may hang you. If you did have intention
of flying, but did not dicslose that when asked, you could be guilty of
fraud. Resuming flying shortly after getting the policy (after stopping
shortly before) with no other reason in evidence, may be seen as
evidence that you did intend to resume flying, and lied about it.

Jose
--
The monkey turns the crank and thinks he's making the music.
for Email, make the obvious change in the address.

On Thu, 10 Aug 2006 10:03:18 -0400, "Skylune"
wrote:
Most life insurance policies have exclusions or addtional charges for high
risk activities, including sky diving and scuba diving. Their actuaries
know how to price risk.

Let's see... I drive a motorcycle to the airport to go flying
somewhere to go diving... I wonder if that would make their
underwriters nervous...

Jim Carter wrote:

1) If your employer offers it, group life is a very good option and
usually doesn't have limitations like skydiving and flying as PIC.

In my experience the general life does not exclude GA but the
accidental death portion of the policy does. Basically it means you
only get the coverage level you would get if you died of a disease, not
the higher (usually double) coverage you would get if you died in a car
crash. Usually the general portion of the employer policy only excludes
suicide and that is only in the first 12 months.

-Robert

"Grumman-581" wrote in message
...
On Thu, 10 Aug 2006 10:03:18 -0400, "Skylune"
wrote:
Most life insurance policies have exclusions or addtional charges for
high
risk activities, including sky diving and scuba diving. Their actuaries
know how to price risk.

Let's see... I drive a motorcycle to the airport to go flying
somewhere to go diving... I wonder if that would make their
underwriters nervous...

How do you carry all of your scuba gear on the bike?

Don't forget to wait 24 hours after diving to fly.

On Wed, 9 Aug 2006 22:31:53 -0700, "BTIZ"
wrote:

Why do you need a 1M 10year term policy?
You should have at least 10x your income in life ins...
to support those who depend on you (wife, kids, etc)

Why term? it's the cheapest insurance there is.

Why 10 years? perhaps he plans to be self-insured in 10 years.

And I suspect I know why he went to Zander...must be a Dave Ramsey Fan
like me www.daveramsey.com

I went to Zander for a term life quote and input that I was a pilot.
They emailed that they would 'get back with me'...but never did.

I ended up buying from Avemco...~$800/year for $500K 20-year term for
a 40-year old 6' and 240 lbs. Would be less for someone younger or
in better shape. (Policy is underwritten by AIG)

I have ~400K thru work also...

Find a broker who deals with companies that understand aviation.

see above...

Maybe lower your coverage?
If he makes over 50K/year $1M coverage may be right.

Buy whole life?
Please Don't!!!!!! If you do the math, you'll find that whole life
is one of the most expensive ways to buy life ins and the effective
interest rate is about 2-3%. You can do better with term life and a
good mutual fund.


--Don
Don Byrer KJ5KB
Radar Tech & Smilin' Commercial Pilot Guy
Glider student & CFI-SEL wannabe
kj5kb-at-hotmail.com

"I have slipped the surly bonds of earth; now if I can just land without bending the gear..."
"Watch out for those doves...smack-smack-smack-smack..."

On Thu, 10 Aug 2006 17:59:25 GMT, "Steve Foley"
wrote:
How do you carry all of your scuba gear on the bike?

My hangar acts as a good storage space for it...

Don't forget to wait 24 hours after diving to fly.

If I'm going to be flying at any significant altitude, I will, but if
I'm only flying at 1000 ft, I don't worry about it...

I don't get all the posts in here for some reason so I apologize if this is
a duplicate....

but I have a $1M/30 yr term policy from the Pilots Insurance Co.
(www.piclife.com). Costs me
$86/mo.

jf


"Joe" wrote in message
oups.com...
I am in the process of trying to buy life insurance for the first time
and I was wondering if anyone had any advice for me. I am sure many of
you have gone through this already.

Here are the details:
I finished my private license last novemeber. I have flown a little
since, but only every 1-2 months.
I requested a quote from Zander (which is basically a broker that
represents many companies). On my original request, I said I was a
pilot. They wrote me back and requested a few more pieces of
information related to my flying like total hours, ratings, hours per
year, etc.

For a $1M, 10-year term policy, with my particulars, with aviation
coverage, they quoted $295 /year BUT, until I had 100 solo hours and
had an annual rate of 25 hours a year, there would be an additional
charge of $2900 annually. Yikes. I can probably swing the 25 hours a
year without too much effort, but I currently only have 20 hours of
solo time. So, it is going to cost me something like $6,000 to amass
that sort of time. Although I would love to go do that next month, my
finances don't allow that at the moment.

So, my question is, has anyone else been in this dilema before? Does
anyone reading this have limited flying experience like I do but have
gotten a better deal elsewhere? Are there other companies I should look
into?

I would really appreciate any advice. At this point I think I am going
to have to give up flying for a few years until I can actually afford
it. And that has got me kind of depressed.

Thanks,
Joe in Denver