Which Life Insurance do you use?

[crxpilot]

Hello,
I am doing some life insurance shopping and wonder what others here use for life insurance that especially covers commercial flying.
I would also be curious as to your normal premium that you pay for your particular coverage.
I am looking to at least get 500,000 for a non smoking 40 yr old.
Thanks for the info and recommendations!

 

[8v8ter]

i got mine through ALPA who contracts with New York Life. I have exactly the criteria you were looking at with the rates locked for 10 years. I pay $323 per year, you can pay monthly if you want.

 

[CitationLover]

Northwestern Mutual Life is always rated the best life insurance product out there. There are NML agents across the country. Call your local one and they can visit and set up an appointment.

 

[tubelcane]

Buy a 20 year level TERM policy. Or longer, if you want. Level means the payments don't go up. Term because anything else is a ripoff and only sold because the agent wants a big commission. When I was furloughed I got my securities license( for mutual funds) and life insurance license in PA. Any more q's pm me.

 

[ualdriver]

Hello,
I am doing some life insurance shopping and wonder what others here use for life insurance that especially covers commercial flying.
I would also be curious as to your normal premium that you pay for your particular coverage.
I am looking to at least get 500,000 for a non smoking 40 yr old.
Thanks for the info and recommendations!

I want to second the motion that you do not buy VUL (variable universal), UL (universal), or whole, life insurance policies. When you get the sales pitch for these types of policies, you're going to be shown glossy pamphlets with smiling, happy, and I guess insured people on them, but the fees associated with these types of policies (loads, M&E expenses, the cost of the underlying investments) make these types of policies BAD investments for you and GOOD investments for the salespeople that sell them to you. For the VAST majority of people out there, you are much better off with a term policy and investing the difference in a 401K, 403(b), IRA, etc., instead of investing in the above. But I'm just a guy on a forum.

Here are a few websites you can try: insure.com, insweb.com, www.accuquote.com. You'll get innudated with phone calls after you put your info in, but that's good- you want to comparison shop. Make sure you tell them that you are a commercial pilot, and further if you participate in any "risky" activities like scuba diving, general aviaiton flying, etc., you want to tell them to make sure that if you reach your untimely demise participating in such activity, that your family is covered. When you do pick a rate, go onto Standard&Poors or Moody's or another type of agency that rates the health of insurance companies and make sure that the company has a top rating and is in good financial health.

Make sure $500,000 is enough, too!

Good Luck.

 

[CitationLover]

Make sure $500,000 is enough, too!

a general rule of thumb is insurance to cover 2-3 years of your income plus college educational costs for each child.

i would also not suggest WL, VUL, or UL. buy term and invest the difference is a good strategy if you're disciplined enough to do it. i have disability insurance through NML that'll roll over into life insurance if applicable.

most insurance companies will make you fill out an aviation rider and supplemental application.

 

[regionaltard]

Which Life Insurance do you use?

Mutual of .45.

 

[dogedog]

I just recently got a 20yr term policy with Genworth financial. I looked for a long time for a company that would not ding me for flying and they were the best that I could find. 600K for $530 yr. i'm 32 and my family history isn't steller so I do not have the best rate that they offer. I live in Michigan and used a local broker, if you would like their number let me know.

 

[SkiFishFly]

I have a level term policy I got through a broker who is a friend. It is cheaper than what was offered by AirTran.
Make sure flying activities are covered. It will cost a little more but not much.

 

[SaabStory]

Usaa.

 

[StopNTSing]

For a $1M 20 yr term policy, I ended up going with Minnesota Life (through AOPA). They were the cheapest...even beat USAA. Most of the other companies had a tough time with the general aviation rider...and the premiums reflected it.

 

[eprops]

Also you can get "return on premium" life insurance. Basically it's just what it says. After your term you get the premium back. For me it's about 16,000 dollars. It's just like term, I blend it with term and pay just a little more but will get a pay out after the term ends. Do be sure that both will pay out if needed some have an escape clause if it's paired with another insurer.

 

[Hutchman]

Usaa.

I second USAA. I have a $250k 20 year term, $16 a month.

 

[ualdriver]

Also you can get "return on premium" life insurance. Basically it's just what it says. After your term you get the premium back. For me it's about 16,000 dollars. It's just like term, I blend it with term and pay just a little more but will get a pay out after the term ends. Do be sure that both will pay out if needed some have an escape clause if it's paired with another insurer.

The problem with that type of policy is that you would probably end up ahead of the game if you bought a straight term policy, and invested the difference between that straight term policy premiums and whatever premium you're paying for the "premium back" policy. And if you had room in your tax deductible/deferred accounts (401K, IRA, etc.) to place that extra money, you'd even be farther ahead at the end of the term.

A wise, old insurance agent (who didn't work on commisions) once told me never mix insurance with investments. What the insurance agency is doing with that policy is taking YOUR extra money and investing it so that THEY can profit at your expense.

 

[CitationLover]

The problem with that type of policy is that you would probably end up ahead of the game if you bought a straight term policy, and invested the difference between that straight term policy premiums and whatever premium you're paying for the "premium back" policy. And if you had room in your tax deductible/deferred accounts (401K, IRA, etc.) to place that extra money, you'd even be farther ahead at the end of the term.

even though i agree with your sentiment, everyone does have different risk tolerances. there is a cost associated with the time needed to research and select investments. to some its very little, to some its a lot. are they disciplined enough to continue the strategy over the 20+yr term policy?

i am assuming the original poster has children, otherwise the first question should be, "why do you need life insurance?"

 

[ualdriver]

even though i agree with your sentiment, everyone does have different risk tolerances.

So they can use a "risk-free" rate in making the determination (T-Bills, CD's, TIPS, etc.,)

there is a cost associated with the time needed to research and select investments. to some its very little, to some its a lot. are they disciplined enough to continue the strategy over the 20+yr term policy?

Unfortunately, you're right about that. So many smart people make really dumb mistakes concerning money/investing/insurance. I am throwing my opinions out there so maybe guys actually spend a little time and do a little research before they make a mistake. Or not make a mistake.

i am assuming the original poster has children, otherwise the first question should be, "why do you need life insurance?

You can still need life insurance and not have children.

Insurance is one of my hot button issues because there are so many insurance SALESMAN masquerading as financial planners that it makes me want to puke. They prey on high earners like airline pilots, doctors, etc., and get them tied up in high cost policies that they don't really need. And I'm not a professional financial planner, just a guy on a forum.

 

[denny]

No life insurance for me. Not married, no kids and not far from retirement. The standard company provided life insurance is enough to box me up, bury me and dispose of my property. And there is plenty more in personal assets provided for in estate planning to go to the people I want it to go to.

 

[eprops]

Key words...

"It's just like term, I blend it with term and pay just a little more but will get a pay out after the term ends."