Applying for Life Insurance as a Pilot in Canada

When applying for a life insurance policy, your profession as a pilot will be a consideration. Life insurance companies consider your occupation as a pilot because of the high volumes of tragedies that occur every year. However, amongst the risks associated with applying for life insurance, aviation ranks pretty low. That being said, every life insurance company has its own policies in place and being a pilot may cause higher premiums and risk your approval.

In this blog, we will explore the unique challenges pilots face when applying for life insurance, including the impact of their profession on policy terms and premium costs, and provide practical advice on securing the best coverage for their specific needs.

Many pilots fear they will have a more difficult time obtaining reasonably priced life insurance due to their occupation or pastime. If your health and family history are good, along with other variables, getting insurance shouldn’t be too much of a problem, whether you fly a private single-engine plane or a huge commercial plane. A common question we receive is “Can I get life insurance if I am a pilot?”

Yes, you can get life insurance if you are a pilot, no matter what kind of flying you do! Here at Protect Your Wealth, we can help you get the best rates for your policy.

Consider a case study of a recent client seeking life insurance who came to us. He flies for a commercial airline. Though his flying career was successful and his medical history was good, the hazards of his work presented major difficulties. This case study will cover his experience with the application process, the particular difficulties he encountered, and the tailored solutions we implemented to provide enough coverage fit for his particular needs and way of life.

Let us investigate a case study of Calgary-based 39-year-old commercial airline pilot Liam. Liam is a perfect candidate for life insurance on paper since, with more than 15 years of flying experience, he has maintained perfect safety record and strong health. But when Liam tried to find a complete life insurance policy, he encountered difficulties common of professionals in his field.

Liam got more than usual premium quotes despite his qualifications. Given the possible risks involved in commercial flying, insurers classified his line of work as high-risk. Concerned about the financial consequences, Liam came to us looking for a customized solution that would acknowledge his great health and professional safety record without adding unnecessary cost load.

We carefully examined Liam’s flying history, medical records, and current coverage over extensive consultations. We then used our contacts with several insurance companies to work out terms that recognized his low-risk profile given his high-risk line of work. We were able to get Liam the coverage he required at a rate that reflected his actual risk, not just his job title by showing thorough documentation of his regular health checks, safety training, and accident-free flying record.

In this article:

• What is aviation to life insurance companies?
• How being a pilot will affect your life insurance
  • What is the difference between the aviation categories?
• How to get the right coverage as a pilot
  • Common mistakes on the insurance aviation questionnaire
• Frequently Asked Questions (FAQs) about Applying for Life Insurance as a Pilot

What is aviation to life insurance companies?

Aviation was once a major concern to life insurance companies, as it was considered to be high non-medical risk due to the chance of malfunctions and crashes. Other non-medical risks include having a criminal record or flying outside of the country. However, based on historical data and trends, it is found that the probability of dying from a plane crash is actually relatively low. In fact, due to their profession, pilots tend to be better educated with higher incomes and have better general health, making them pretty good risks to consider.

Life insurers break down aviation into three different categories:

• Commercial Aviation – bring passengers to and from licensed airports
• Private – casual pilots who bring specific passengers
• Sport – aviation related sports including non-conventional aircrafts, competitions and performances

These categories will be taken into consideration by the life insurance companies; there are other factors that are included such as:

• Type of aircraft flown
• Purpose of flights
• Number of flying hours per year
• Type of license held
• Pilot’s experience

Life insurance companies will take all these considerations into account when deciding the premiums and coverage for your specific circumstances.

How being a pilot will affect your life insurance

Pilots are often worried that due to their career or hobby it may be more difficult to obtain approval for an affordable life insurance policy. This is not often the case, as the chance of obtaining regular rates as a pilot is very possible. In the past, you may have been requested to include an aviation exclusion rider in all life insurance policies, but historical data has showcased that being a pilot is relatively low risk and has become more flexible with their policies. 

Key highlights to consider:

As a pilot, you will be expected to complete an additional questionnaire related to aviation during your application. This questionnaire will cover details relating to your flying practices, overall experience, ratings you have received, the type of aircraft you fly and the details of your specialized flying. This information will be used to decide your rates, depending on how much of a risk they consider you to be. While the underwriting rules and processes are relatively the same across the board, the life insurance rates and policy amounts you will be offered are not. Life insurance underwriters will evaluate all aspects of an individual’s application to determine the risk class they qualify for.

An example would be a 35-year-old healthy private pilot, who has not yet suffered from any accidents or violations; he estimates 250 solo hours in the air per year. He gets rated at Preferred by the life insurance agency but they require him to pay a flat extra fee of $2.50/thousand for the first two years. This means that if he applies for a 20-year $500,000 term policy, he will be required to pay an extra $1,250 each year. This number is calculated by multiplying 500 by the $2.50 fee. Given an annual premium payment for his preferred policy is $355, he will be paying $1585 each year for two years; approximately $132/month. By the third year, his flat extra fee will drop and his annual premium payment will decrease to $335 or $28/month.

What is the difference between the aviation categories?

As mentioned above, life insurance companies will take the different categories of aviation into consideration when deciding the right policy to offer you. These categories are: commercial aviation, casual and sport. 

Commercial pilots have the best reputation with life insurance companies. Pilots of civil air carriers of major airlines are the most favorable for underwriting because despite those planes being more complex, these pilots have the strictest guidelines imposed on them. Their rate of fatal accidents is 35 times lower than the other aviation categories. They may even be rated as preferred plus depending on the rest of their application.

Private pilots are able to obtain regular rates under some conditions, but it is more difficult. They are often offered the rates with more conditions which can cause an increase in premiums. These conditions are often related to age and experience. Another factor that may lead to additional premiums for private pilots is their geography. For instance, flying over fields of wheat is considered safer than mountainous terrain and additional premiums may be added for the perceived additional risk.

Private and sport rank similarly amongst life insurance companies due to them being viewed more as hobbies. These pilots will be investigated more thoroughly to understand and evaluate the factors life insurance companies consider. This may result in higher premiums depending on what risk rating they get labelled.

How to get the right coverage as a pilot

While pilots are healthier and more affluent than the general population, they are not a preferred risk for life insurance companies and undertake a more strict underwriting process. This process is often tedious and takes into account your age, health and medical history, occupation and hobbies. Aviation is considered a risk factor and a hobby of flying may dramatically change your ability to acquire affordable insurance.

It may be frustrating that a pilot of excellent health may be offered a premium rate higher than a non-pilot with health issues. An active pilot completes a physical exam every 6 months to 2 years, but life insurance agencies base their rates on limited and outdated aviation safety statistics, leading to penalizations with unreasonable premiums. Here are some steps to best avoid this:

Common mistakes on the insurance aviation questionnaire

As mentioned previously, there is a questionnaire you will have to fill out when you mark that you are a pilot on your application. It is important you fill out the questionnaire correctly to ensure you have the most accurate quote. Here are a list of common mistakes that pilots make on the questionnaire:

• Pilots with their CFI rating but do not instruct need to clearly state that they are not active in flight instruction since active flight instructors typically do not qualify for the same rate class as other pilots. 
• CFIs instructing only certified pilots can qualify for a much better rate class than those instructing primary students. 
• Pilots who partake in unusual attitude training should not mark ‘Yes’ to the aerobatic flying question, it should be stated that you perform these maneuvers for safety purposes. 
• Pilots performing air ambulance activities must clarify whether they fly fixed-wing or rotorcraft since fixed-wing rates will be much less due to the conditions each type is likely to fly into.

Frequently Asked Questions (FAQs) about applying for life insurance as a pilot

Finding the right life insurance for you

Even with a profession as a pilot, you can obtain affordable life insurance. You can enlist the help of an agent to find the best life insurance for you and your needs when applying for life insurance as a pilot in Canada.

If you’re not sure of what’s the best insurance plan or company for you, working with a life insurance specialist can help you find the best solution to fit your particular situation. At Protect Your Wealth, we’ve been providing expert advice for all types of life insurance since 2007. As your trusted Life Insurance broker and financial planner, we work with you to create a plan for your family or business that covers and meets your needs. 

Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, Alberta, and British Columbia, including areas such as Kingston, Coquitlam, and Airdrie.