Holy !@#$ Insurance is expensive!!

Bandit_Driver said:
Also check on your life insurance policy. I am 5000+ hour ATP and my life insurance will not pay out if I fly a GA aircraft. If I am flying a company aircraft under 121 then it isn't a problem. State Farm's view GA flying is that it is very hazardous to one's health. I even had to get a rider just to cover my 121 flying.
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Unfortunately, that's very typical. Many policies I sold wouldn't even cover someone flying a chartered (135) or corporate (91/91k) aircraft in even the largest of stuff (Geeeeeeeeeee). Normally you can get a rider for 121 if you're a pilot, if you're not normally the policy will cover you flying on a 121 air carrier plane.

It can be very expensive....very expensive.

-mini
 
I got my multi commercial in a geronimo. When I tried to get insured through avemco, I had 150 hours and an instrument. They wouldn't let me fly it until I got to 200 TT, then solo when I had 25 in type. I can't tell you how much it cost, since it was through a small flying club. BTW, great choice of airplane.
 
matt152 said:
A little off-topic: I have wondered about this from time to time. Although I am affiliated with a flight school, there is the occasional opportunity to do a flight review in an owner-flown airplane. I never ask if these guys have insurance, but maybe I should.

I have seen the CFI insurance advertised through AOPA. Anyone know if this would cover this sort of situation? Is it worth it?
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This is how the insurance works at the flight school that I work for. When I fly in an airplane that is owned by an individual the schools insurance covers me. It only covers me if I am giving instruction to that individual. This is not something that comes with all schools insurance coverage. It is an extra premium.
 
sidenote: and a serious question.... what exactly is the point of life insurance??

if im dead, uh, im dead. who cares about getting paid?
 
TXaviator said:
.....but .....im dead. why the hell would i care? im fish food.
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The right kind of policy in the right person's hands can also allow you financial flexibility later in life. I'm not saying insurance is an investment, because it isn't...it's insurance. What I am saying is, the right type of policy (ULs are my favorite to sell) can be really nice later in life. I'm not a fan of "buy term and invest the rest". Term has a place and a purpose, but not for long term planning.

Also, if you're given 12 months to live, you can normally cash out your policy and then go spend the money yourself. Life insurance doesn't just pay out upon death.

-mini
 
Do you care about your family? Have any debt? Know how much funeral costs are? All of that rests with your family as soon as you are gone. I'm 22, and I even have life insurance! I like having that extra security and so that my family is not stuck with my college/flying debt. There are MANY reasons to have it!!! I'm sure other people will add to the list...
 
TXaviator said:
sidenote: and a serious question.... what exactly is the point of life insurance??

if im dead, uh, im dead. who cares about getting paid?
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If you are single, there really is no point, except perhaps to cover funeral expenses. Usually whatever token amount your employer provides is enough to cover that, so I never bothered purchasing any life insurance until I was married.

If you are married, moreso if you have children, and particularly if you are the sole income earner, I don't see how you could go without life insurance. I think it is borderline irresponsible not to carry it if you have kids and your spouse would not easily be able to earn enough income to cover the bills. Though a typical life insurance policy may only pay out $250k to $1m, it is at least enough to allow the survivor to pay off any large debts and hopefully have enough left over to pay regular expenses for a few years.
 
Barty said:
Though a typical life insurance policy may only pay out $250k to $1m,
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I want to move to (and sell insurance) where you live!!!

The average policy around here is between $10 and $25k. There are still some $2500 policies on the books that were sold years and years ago, but they don't cover squat. It's going to cost ~$10k to put someone in the ground anymore give or take $2k let alone paying off debts and allowing the survivor to have some money to pay bills with.

I agree though, it's irresponsible not to have life insurance.

-mini
 
i dont have anything to do with my family and am not married or have any children, and i dont forsee getting married or having children.

when i die, just write me off the books as dead :-) i dont need to give away my money to something i cant use.

cost $10k to put someone in the ground? what happens to poor people?
 
JulietBravo said:
I like having that extra security and so that my family is not stuck with my college/flying debt.
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Actually you can not pass on nor inherit debt. It is true that whatever assets you have have to stand good for whatever you owe, i.e. if you own a house, car, retirement accounts, etc, those assets would have to stand good for your debts. But if you have no assets and you die with credit card or student loan debt then Mastercard and Sallie Mae are screwed.

As far as costs, as a 30 year old non-smoker just doing a quick and dirty quote online it looks like I could pick up a million dollar 30 year term life policy for about $60 a month. Why a million bucks? Well, the purpose of life insurance is primarily to take care of your dependents after you're gone, i.e. replace your income. One could easily put a million bucks into several diversified investment vehicle and be able to draw 6-8% a month off of it, thereby replacing your income should you go be plant food somewhere.
 
TallFlyer said:
Actually you can not pass on nor inherit debt. It is true that whatever assets you have have to stand good for whatever you owe, i.e. if you own a house, car, retirement accounts, etc, those assets would have to stand good for your debts. But if you have no assets and you die with credit card or student loan debt then Mastercard and Sallie Mae are screwed.

As far as costs, as a 30 year old non-smoker just doing a quick and dirty quote online it looks like I could pick up a million dollar 30 year term life policy for about $60 a month. Why a million bucks? Well, the purpose of life insurance is primarily to take care of your dependents after you're gone, i.e. replace your income. One could easily put a million bucks into several diversified investment vehicle and be able to draw 6-8% a month off of it, thereby replacing your income should you go be plant food somewhere.
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So you're going to pay $60/month for your million dollar policy. Over the life of the policy you have just spent $21,600 on the policy. You die on your 63rd birthday and have no insurance. Your family gets zero. Buy term and invest the rest isn't a good strategy unless you're planning on dying before the end of the term.

...and yes, your creditors can definitely try to get the money from your family. They may not get it, but they can certainly try.

-mini
 
Hi!

Unless U R basically buying a turboprop twin, if U R buying the airplane for yourself, but a SE with fixed gear, like a 172/182, Cherokee XX, Cirrus, etc.

The MX costs and insurance for 2 engines and/or for retractable gear is not worth the benefits. Also, the accident and death rate for light twins is worse than for SE aircraft.

cliff
GRB
PS-I would say a "normal" funeral is going to cost at least $15K.
 
atpcliff said:
Also, the accident and death rate for light twins is worse than for SE aircraft.
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Source?

PS-I would say a "normal" funeral is going to cost at least $15K.
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I think that's on the high side for a "normal" funeral. I'll have to go in and look at my books, but IIRC the info we got from the office was $10k for an average funeral.

-mini
 
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