Loss of Licence and Life Insurance for Pilots
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Join Date: Feb 2007
Location: ˙ǝqɐq ǝɯ ʇ,uıɐ ʇɐɥʇ 'sɔıʇɐqoɹǝɐ ɹoɟ uʍop ǝpısdn ǝɯɐu ɹıǝɥʇ ʇnd ǝɯos
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Loss of Licence and Life Insurance for Pilots
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):
Thanks in advance,
FRQ CB
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 product
Thanks in advance,
FRQ CB
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!
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!
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.
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.
Thread Starter
Join Date: Feb 2007
Location: ˙ǝqɐq ǝɯ ʇ,uıɐ ʇɐɥʇ 'sɔıʇɐqoɹǝɐ ɹoɟ uʍop ǝpısdn ǝɯɐu ɹıǝɥʇ ʇnd ǝɯos
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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
Does anybody see a hole in this plan?
~FRQ CB
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
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
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.
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.
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.
