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FRQ Charlie Bravo
21st Aug 2009, 15:32
Hello fellow PPRuNers,

I've recently been spurred into action by the sudden and unexpected loss of a friend with a young family to ensure that my own young family is insured as well as needed but I'm finding the search for appropriate cover to be a bit confusing.

Originally I was just looking for simple life insurance from a commercial provider, something around $350,000 seemed reasonable and affordable... but then these companies try to sell "Critical Illness" and "Permanently Unable to Work" cover. Well, this sounds like something that would be covered by Loss of License cover.

I would love to hear what other pilots in similar circumstance have decided to do. My concerns and needs are these (in order of priority):

Life Insurance of around $350,000 (for the fam of course),
A means of paying the bills if I can no longer do any type of work (here in GA Land I still don't earn much but I'm waiting for the investment to pay off so Loss of Income cover of 4 x my current wage is just not enough),
If I can no longer fly but can still do other work I'll need a means of paying the bills and recouping the investment in my Pilots License and associated training,
These needs to met by one productI have searched PPRuNe and haven't found much relevant info in D, G & P in the last few years. I'm keen to get this sorted before too long so I can sleep more soundly and stop hunting for insurance in the wee hours.

Thanks in advance,

FRQ CB

glekichi
21st Aug 2009, 21:59
This doesn't comply with your number 4, but still well worth a look.
My super is with Aviva and my employer contributes about $10 a month for $180K death cover. Im sure you can get this upped for an extra premium.

For LOL insurance the AFAP MBF allows you to choose the right amount of cover for your circumstances. I thought a 500K benefit was a bit excessive so went for $300K instead for now (while in GA). Thats still 6 years worth, and they include an additional $100k death benefit with that too. Pretty well covered for $600ish a year.

Theres better beer in Radelaide!

glekichi
21st Aug 2009, 22:04
Actually, come think of it, the MBF option alone does comply with your number 4 requirement, because you get the full benefit + 100k extra in the case of death.

If you can go 20 years without using the insurance you get all your money back too!

I've recently signed up with the news that the missus and I have one on the way.:ok:

FRQ Charlie Bravo
22nd Aug 2009, 09:27
Thanks for that. I think we'll probably look at Loss of License with AFAP MBF and another life insurance policy with another company (but reduce what we need by $100K due to the Loss of Licence death clause).

Does anybody see a hole in this plan?

~FRQ CB

Dehavillanddriver
22nd Aug 2009, 11:47
Firstly let me say that below isnt meant to be me preaching or anything else, I have tried to rewrite it to make it less preachy (but I failed!) but to be honest it is a pretty important subject - so please dont take it the wrong way!

I dont think that 350k is anywhere near enough.

I have over a million in life and trauma insurance, income protection insurance and MBF loss of licence insurance - and I think I am under insured. Thats not me bragging - I mention it as an indication of how much I reckon I want to have available for my wife and kids if anything happens to me. Granted I am not being paid GA salary levels, but I reckon go for as much as you can reasonably afford.

The problem is that if you are gone, or worse still, there but in need of constant care, 350k will last about a year.

You need enough dough to pay off the house or buy one if you dont have one, pay off your debts (credit cards, student loans, cars, personal loans, the store account for that large LCD tv you thought was a bargain), if you have kids you need to be able to hire a nanny or babysitter (or child care) so that your partner can earn a living to support the kids and or you. You need to dress, feed and educate any kids and that all takes money.

If you dont end up dead - thats when you really need money. Medical benefits will only go so far, and after that it is your pocket that needs to support you into your dotage.

I recommend that you speak with a reputable financial planner, work out what you need to support your family if anything happens to you.

Dont underestimate how much it costs to support a family.

They have to cope with you not being there to see all the important milestones - they dont need to be saddled with your debt and they dont need to be left in poverty.

I hope you sort it all out - it is a pretty important piece of the financial puzzle.

Good luck

Capn Bloggs
22nd Aug 2009, 14:04
For LOL insurance the AFAP MBF allows you to choose the right amount of cover for your circumstances. I thought a 500K benefit was a bit excessive so went for $300K instead for now (while in GA). Thats still 6 years worth, and they include an additional $100k death benefit with that too. Pretty well covered for $600ish a year.
You also have to be a member of the AFAP. 1% of your salary PA.

The Green Goblin
23rd Aug 2009, 00:27
And as per the award your employer is required to pay your LOL insurance for you.

The AFAP is the best IMO and being a member is also a pretty savvy move not because there is much benefit in being a member but because of the legal representation that you are entitled to in case you make a critical mistake which causes an accident and loss of life.