The greatest hurdle when applying for life insurance for helicopter pilots is cost because it could be considered a risky hobby or occupation. Almost every carrier adds mandatory extra premiums for you to pay in order to secure coverage.
Unfortunately, too many pilots think there is no alternative and buy these costly life insurance policies.
The goods news? A few select carriers allow you to buy a policy without the extra costs involved, as long as you can meet a few criterion.
Continue reading below to know exactly what you should be armed with before applying. It could end up saving you thousands of dollars!
First, let’s discuss what the extra costs are so you can be as educated as possible when discussing premiums. If you’re not informed, you won’t even know the right questions to ask to get the lowest rates.
Flat Extra – an extra charge, usually attached as a dollar amount per thousand of coverage.
It might not sound like much, but it adds up very quickly. If you read the definition closely, it’s a dollar amount per thousand! Even a quarter million dollar life insurance policy means you’re paying the extra dollar amount times 250!! Let’s put this into perspective in numerical format.
Example: Steve needs $250,000 in coverage to support his new mortgage. His agent reported it would be $1,000 per year plus a flat extra of $10. Here is what he’ll actually pay:
Initial Premium + (Flat Extra x Per Thousand Units) = New Premium
($1,000) + ($10 x 250 units) = $3,500!!!
If Steve can find a more appropriate carrier to avoid the flat extra fee, he could save $2,500 per year on his policy. Obviously, finding a more knowledgeable agent and different insurance carrier will make a massive difference. So, where does he start?
Step 1: Find the right agent. Your car insurance agent won’t cut it. Your best bet is to call an agent like us who is familiar with this type of application. Chances are, we won’t immediately submit an application for you. Instead, we’ll pre-qualify you with multiple carriers to make sure we can get you not only a great rating, but without the flat extra fees. This is a key step, and skipping this could have adverse results on your approval.
Step 2: Know your piloting details. Have the answers to the following questions readily available.
Step 3: Know your health information. Just because you can be underwritten successfully as a pilot does not mean you qualify. Your age and health are the two main factors which determine your ability to qualify and, ultimately, the price you pay. Let’s say you were able to avoid the flat extra fee but your current health or health history was a concern. Now you may have to deal with table rating increases instead. Fortunately, once again, this is something we can help you with.
Our goal is to get you the most affordable policy possible. We are confident we can earn your trust and your business by doing so. Contact us today if you fly helicopters of any kind, civilian or military.
We will do our best to have an accurate quote in 24-48 hours directly from the underwriters of the insurance companies we work with. These won’t absolutely guarantee a rate until you’ve submitted a formal application and have been underwritten completely, but as long as there is nothing which presents any additional risk to the carrier, the quote will be precise. Life insurance for helicopter pilots can be annoying, but we can help.