Holy !@#$ Insurance is expensive!!

I checked into this years ago. The Apache was so high because of parts availability. If you ding it, what would be an easy airframe repair on, say, a PA44 could be impossible for the Apache. The bone yards have been picked clean. What SHOULD be a $7000 repair COLD end-up totaling the aircraft if they are not available and cannot not be fabricated and installed with a 337.

I think the quote for a $50k Apache was $5k, and a $100k Seminole was $3500. Usually, the hull value is the driving force with these policies.
 
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.
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Actually Buy term and invest the rest is a great idea if you actually invest.

Using some numbers from New York Life the premium on a $100,000 whole life policy is about $98 a month. Now, after 30 years you could cash out of that policy and receive approx. $75,000 or if you died at the same time your beneficiary would receive the face value of the policy, $100,000, and not the cash value.

Now, a 30 year level term $100,000 policy has a premium of about $13 a month. a difference of $85. If I take that $85 and invest it into something that earns 8% minimum, at the end of that 30 year term I'll have about $128,000. If on the last day of your term you die, your beneficiary gets the payout of the policy and keeps the savings.

Now, going back to our million dollar policy, yes, it does expire at the end of the term (although some policies are extendable), however if you've properly planned for the future and have a decent sized nest egg when your policy expires then you are now self-insured. If you max out a Roth IRA ($417 a month) between ages 30 and 60 and can make 8% you will have $630,000 in the bank at age 60. If you can make 10% that number jumps to $958,000. If you've got that in a nest egg, who needs life insurance?
 
TallFlyer said:
Actually Buy term and invest the rest is a great idea if you actually invest.
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We'll have to agree to disagree. I don't like the idea of "self insuring".

...and who buys whole life policies anymore? :confused: Get a good UL, over fund the hell out of it while you're young and let it over fund itself when you're older. You can contribute to your Roth at the same time. Then you'll have a nice pool of cash to retire with and life insurance to pass on to your loved ones.

-mini
 
Just for reference, my insurance on my 1961 Cessna 310 is right around $4k/yr. It's been that amount for the couple years that I've owned it. When I bought it, I had around 200TT, very little complex time and had just gotten my ME rating. I now have around 250 in type and insurance really hasn't dropped at all. I think it went down like $50. Companies just don't like insuring these old twins. Oh, I think I have my hull value set around $50k. I had to fly the first 25 hours with an instructor familiar with Cessna 310's.
 
minitour said:
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
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Perhaps we're talking about two different things here. I'm just talking about a standard term life policy, not something attached to an aviation policy.
 
Copperhed51 said:
Just for reference, my insurance on my 1961 Cessna 310 is right around $4k/yr. It's been that amount for the couple years that I've owned it. When I bought it, I had around 200TT, very little complex time and had just gotten my ME rating. I now have around 250 in type and insurance really hasn't dropped at all. I think it went down like $50. Companies just don't like insuring these old twins. Oh, I think I have my hull value set around $50k. I had to fly the first 25 hours with an instructor familiar with Cessna 310's.
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Thank you, that is very helpful as our situations are similar. Might be time to shop insurance, seems like it should have dropped after a year as long as you have been flying regualarly. Insurance guy told me how often you fly has a bearing on cost as they figure if you do it all the time you will be in the habit of putting the gear down! Thanks again. JOE
 
Barty said:
Perhaps we're talking about two different things here. I'm just talking about a standard term life policy, not something attached to an aviation policy.
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Yeah, we're talking about a standard policy. There's no way the average policy around here goes for 250k-$1mm. Sure, you can get the odd business owner that wants to protect his business or keep it in the family or maybe someone buys a really nice house and needs that $300k to protect their wife and kids if something happens, but to say that a "typical" policy is that high...at least around here...just doesn't happen. Face values are far lower.

That's why I want to sell insurance where you live. I'd make a poo-ton more than I would flying airplanes. :D

-mini
 
Two best suggestions I noticed were:
1) join a flying club and share expenses- you'll get a lot more hours for the money.
2) after my demise, I intend to donate my organs, then cremate the remains. I'd rather be spread over my high school's principals grave and grow some weed seeds there!
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