Life Insurance and Aviation: Background
Can You Get Life Insurance if You are a Pilot?
Does Aviation Affect Life Insurance Premium Rates and How?
What Life Insurance Types Can a Pilot Get?
What is the Best Pilot Life Insurance Company?
In this article, we’ll talk about another non-medical risk that insurance underwriters are sure to take into consideration when reviewing a life insurance application. The risk is related to a job or hobby – aviation.
According to the Canadian Owners and Pilots Association,
More than 60,000 pilots operate around 30,000 airplanes out of approximately 2,000 airports/airfields. Crafts range from commercial to private to ski/float planes.
Insurers perceive aviation as riskier than many other activities, which can impact the cost and availability of life insurance coverage for pilots. Also, it goes without saying that life insurance is necessary for such a risky activity!
When it comes to the relationship between life insurance and aviation, it is worth noting that insurance companies view life insurance for commercial, private, and sport aviation differently.
Commercial Aviation
Private Aviation
Sport Aviation
In a nutshell, the higher the risk you take, the higher your premiums will be. Ready to learn more? Keep reading!
You can get coverage. However, pilot insurance costs and coverage will depend on a variety of health and lifestyle factors. Unlike traditional medical underwriting, which assesses an applicant’s health and medical conditions, aviation-related life insurance underwriting emphasizes factors related to aviation activities.
When applying for insurance coverage, insurance companies often require additional details about your specific aviation activities. To gather this information, you will typically be asked to complete an aviation questionnaire. While the format of the questionnaire may vary, the main factors that are typically taken into consideration include:
In summary, traditional life insurance for pilots and aviation enthusiasts is available in Canada, but it often involves specialized policies that account for the unique risks and demands of flying; and, of course, aviation insurance premium rates in many cases will be higher than standard. Pilots should carefully assess their needs, work with experienced insurance professionals, and provide accurate information about their aviation activities when applying for coverage.
There are two categories of policies available in either scenario: simplified issue policies, which involve a questionnaire but no medical examination, and guaranteed issue policies, which do not have a questionnaire nor a medical examination.
All aviation activities, be it commercial, private, student, etc., will impact your insurance rates. The chart below explains how three insurers view the risk.
| Commercial | Private | Sports | |
| Insurer A | Pilots of commercial passenger air carrier may qualify for health/style 1, 2 or 3. Other types of aircraft or flying require ratings ranging from $2.50–$10/mil. For example: Crop dusting and bush pilots $5/mil. Air ambulance, power line inspection, traffic control $3.50/mil. Aviation exclusion is not offered when the insured’s livelihood is from aviation, or when applying for survivorship or joint policies. | Risk is based on annual hours flown. 300 hours/year: standard. Pilots who fly over 300 hours annually would be ratable. Rating decreased to $2.50/mil with IFR or ATP licensing. Aviation exclusion may be offered but only on individual policies and not on joint policies. A client over age 70 would have an exclusion (except for joint policies where we cannot exclude). A medical condition such as heart disease may warrant an exclusion (only on an individual basis, not on joint policies). | Risk is based on the base aviation risk where applicable, as well as the type of special risk. Ratings range from $2.50/mil–decline. For example: ballooning may be standard. Hang gliding may be $5/mil. Paragliding $2.50/mil. An exclusion may be offered, but only on individual policies and not on joint policies. A client over age 70 would have an exclusion (except for joint policies where we cannot exclude). A medical condition such as heart disease may warrant an exclusion (only on an individual basis, not on joint policies). |
| Insurer B | Airline pilots or regular flights: standard if at least one base in Canada or the U.S. Otherwise $3.50 per $1,000/year. Charters: standard if large plane capacity (30+ passengers); otherwise $2.50 to $5.00 per $1,000/year. Other piloting occupations: majority require extra premium of $2.50 to $7.50 per $1,000/year. | Best case scenario: pilot age 27 or older who has more than 100 solo hours and flies fewer than 200 hours annually: standard. Otherwise: standard to $5.00 per $1,000/year. Student pilot: Usually $3.50 per $1,000/year unless meets criteria for best case scenario above. Canadian recreational permit: $2.50 to $3.50 per $1,000/year. | Standard to $7.50 per $1,000/year. Exclusion may be used in some circumstances. |
| Insurer C | Major carriers are standard risk. Otherwise, rating can range from $2 .50 to $5 per thousand. | Rating will differ depending on age of insured. Can range from $2.50 to $3.50 per thousand. Helicopter pilots are generally rated $3.50 per thousand. | —— |
This chart shows what types of life insurance are available for pilots in Canada.
| Insurance Type | Medical Exam | Detailed Medical Questionnaire | Short Questionnaire | Coverage Limits | Important to Know |
| 1. Traditional, Medically Underwritten Life Insurance with PREFERRED RATES | Yes | Yes | No | $5,000,000+ | Is not available |
| 2. Traditional, Medically Underwritten Life Insurance with STANDARD RATES | Yes | Yes | No | $5,000,000+ | In certain cases, such as for pilots in commercial aviation or for individuals who are 27 years old or older with more than 100 solo hours, it is possible to meet the requirements for insurance coverage. |
| 3. Traditional, Medically Underwritten Life Insurance WITHOUT A MEDICAL EXAM | No | Yes | No | $5,000,000+ | Is not available |
| 4. Traditional, Medically Underwritten RATED Life Insurance | Yes | Yes | No | $5,000,000+ | This is the most likely scenario for those who are in aviation. Rates will depend on many different factors like experience, aircraft, type of flights, etc. |
| 5. Simplified Issue Life Insurance | No | No | Yes | $1,000,000 | Qualification is possible but with high rates. |
| 6. Guaranteed Issue Life Insurance | No | No | No | $25,000 | You can always qualify for this one. However, there are drawbacks. Guaranteed issue insurance does not pay claims in the first two years and the premium is high. |
To find the best rate and coverage for life insurance for pilots and aviation enthusiasts, it is advisable to partner with a knowledgeable life insurance broker. These professionals have access to a wide range of life insurance policies and can compare the criteria set by different insurance companies. This allows them to identify the most suitable options for your specific needs.
Most life insurance companies, including Manulife, SSQ Life Insurance, Empire Life, Canada Life, and Assumption Life, provide coverage for individuals who participate in aviation. However, the way each company treats extreme sports can differ, so be sure to check with a broker. To get started, fill out the quote request on this screen.
