Q. I’m Rohit, a pilot, and I’ve heard that life insurance can be more expensive for individuals in high-risk professions. How can I find affordable life coverage that suits my occupation?
Hi Rohit, the job of a pilot is indeed an exciting journey filled with adventure and responsibility. However, it’s no secret that certain professions, including aviation, are deemed high-risk by insurance companies. That translates into higher premiums. Finding affordable life insurance coverage tailored to your needs is a crucial aspect of financial planning.
Let us explore how to navigate the complexities of insurance and secure life coverage that suits your occupation, without breaking the bank.
Also Read: What are participating life insurance plans and their advantages?
Shop around
Start by shopping around. Different insurance providers have varying underwriting criteria and pricing structures. Obtain quotes from multiple insurers—traditional companies and those specialising in coverage for high-risk professions. Utilise online comparison tools or consult an independent insurance broker to access a wide range of options.
Explore group insurance
Group plans can sometimes provide more favourable rates compared to individual policies. Explore group insurance plans offered by professional organisations or associations of pilots.
Also Read: How has life insurance transformed into a vital component of wealth management?
Maintain healthy lifestyle
While your profession may be high-risk, adopting a healthy lifestyle can positively impact your insurability. Regular exercise, a balanced diet, and abstaining from tobacco use are among the important factors that insurers consider when working out premiums. Demonstrating a commitment to a healthy lifestyle can potentially lead to a more affordable premium.
Consider term insurance
Unlike whole life insurance, term insurance provides coverage for a specified term, allowing you to tailor the policy duration to your needs. Term life insurance is often more cost-effective than whole life insurance. The lower premiums associated with term life insurance can be advantageous, especially if you are looking for affordable coverage without the added complexities of investment components.
Also Read: Should I buy double accidental death insurance or a life cover?
Understand policy options
Familiarise yourself with the different types of life insurance policies available to you. Compare benefits and limitations and choose the one that aligns with your financial goals and circumstances. Once you understand the nuances, you will be able to make more informed decisions.
Prove commitment to safety
Highlight any safety measures or risk mitigation strategies associated with your piloting career. Employment with a reputed airline and a strong safety record can positively influence insurance underwriting. Provide such evidence of your commitment to safety.
For a pilot like you, securing affordable life insurance requires diligence, awareness, and strategic decision-making. Explore various options, leverage specialised providers, and highlight factors that mitigate risks to improve your chances of obtaining coverage in your high-risk profession at lower cost. It will not only protect your loved ones but also contribute to your overall financial security.
International Money Matters Pvt Ltd is a 22-year-old SEBI registered financial planning-cum-investment advisory boutique. Please click here to find out more.
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Published: 09 Jan 2024, 10:36 AM IST
