Even as little as a few months ago, the best life insurance rate for a private pilot without an instrument flight rating would usually be the second best “Preferred” rate on best case basis, and this was only with the really aggressive companies for pilots. Many insurance companies may also only offer a Standard or Regular rate and others may even charge an extra premium to all private pilots.
I’ve learned time and time again that I can never assume anything in this business, and if I don’t shop with EVERY quality life insurance company to get every pilot the best offer, then I may miss an opportunity to get my client’s the absolute best offer possible!
I just shopped a life insurance case for a private pilot with no instrument flight rating and two different A+ rated insurance companies offered their absolute lowest “Preferred Plus” rate class.
This is great news for any private pilot who needs life insurance or who already has life insurance but may not have been offered the best rate.
The case mentioned above is the perfect example of why we offer you life insurance from hundreds of different companies and always shop with all of these companies to get best offers. After 45 years of being in business, we still sometimes get surprised when a really awesome offer is made.
Getting Best Insurance Offers for Pilots Takes Work
I even inquired with an underwriting consultant I know on the case mentioned above. This consultant has worked as a head underwriter at some major insurance companies over past 40+ years and is what I consider an expert in underwriting. Even this consultant told me that a Preferred Plus rate was probably not going to happen for this pilot with no IFR.
Another thing I’ve learned time and time again is that even the “experts” don’t know everything.
Maybe on the day I inquired directly with this insurance underwriter that ultimately made a “Preferred Plus” offer his company just changed their guideline for some private pilots, or maybe he figured he’d do me a favor since I’ve placed business with his company for many years. I don’t know the answer as to why I got this offer, but all that matters is that I did.
The other thing that was interesting about this case mentioned above, was this pilot wanted to buy a portion of a 20 year term and a portion of a 30 year term to avoid having “all of his eggs in one basket.”
The funny thing is, that while the company that offered their lowest “Preferred Plus” rate did have the best 20 year term price, this company did not have the best 30 year term price.
The best 30 year term rate was from a different A+ rated company altogether. This other company’s second best “Preferred” 30 year term rate was actually less expensive than the 30 year rate from the company that offered the absolute best 20 year term rate.
Pay Attention to Price and Value
Don’t be concerned with the name of the rate class for which you qualify (i.e. Preferred Plus, Preferred Best, Preferred Elite, Preferred, Select, Standard Plus, etc.), but instead pay attention to the cost of the policy when comparing it to other similar policies.
Quick side note: There was an insurance company several years ago (U.S. Financial Life) that would offer “Preferred” rates when no other insurance companies would offer any rate close to Preferred on the same cases. The scam was that U.S. Financials “Preferred” rates were equivalent in cost to most other companies Regular or Table 2 rates (i.e. Regular plus 50%), but getting a “Preferred” rate appealed to some people so much that they neglected to verify that the actual cost of the policy was decent. Good marketing ploy, but it didn’t last long as U.S. Financial stopped offering new policies years ago.
While I’ve said it before, price is definitely not the only thing you should focus on when purchasing any life insurance policy. Besides for the financial stability of the life insurance company you purchase from, pay attention to the company’s conversion option. Try to always buy a policy that will be convertible for your full level premium duration, like the entire 10 years, 20 years, 30 years, etc.
Having a policy that is still convertible up until the end of your term period would enable you to automatically extend the duration of your policy at the same rate classification that you originally applied for (i.e. Preferred Plus, Preferred, etc), regardless of your current health or piloting status at the end of your term.
An excellent conversion option has paid off for hundreds, possibly thousands, of our clients over the years that ultimately wanted to extend their coverage or even just a portion of their coverage, especially when a new health or other issue would make it tough for them to qualify for a new rate or a new “good” rate.
Being convertible at the end of your term would also enable you to potentially try to “sell” your policy via a life settlement.
In my opinion, a better and longer conversion option is worth paying a couple more dollars for, but I’ll always show you the absolute best rates, so you can decide for yourself which would be best.
No other insurance agents, brokers, or websites can offer you life insurance from more insurance companies than we can offer you. Since 1969, we’ve made friends and built relationships with underwriters and reps at every major insurance company, and these relationships will help us to secure the best offer for you.
Feel free to check out just some of the companies we can offer you by using the quoting tool to the right or simply click the link above to get an accurate pilot life insurance quote!
Whether you are a private or a commercial pilot, please feel free to call us at 1-800-380-3533 or simply click here to email us to get quotes for the absolute best rates available to you.
Since 1992, Gordon E. Conwell, III (G3) has helped thousands of ”higher risk” individuals get the best life insurance rate/value. Being a high risk himself, he knows the struggles you’ll face trying to get affordable life insurance. His unique shopping process and underwriting knowledge will result in the best offers, every time!