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Life insurance is a top priority for pilotsLife insurance is a top priority for pilots

Underwriting a pilot may give many insurance actuaries heartburn; many life insurance policies may not provide aviation coverage at all. Fortunately, AOPA has negotiated a plan that provides aviation coverage with comparable group rates.

Does your family have enough?

Most financial experts agree that life insurance is an important part of financial planning. However, the latest study on Americans and their life insurance coverage shows that many do not have enough to protect their families.

While most continue to see the value in owning life insurance, 30 percent know they need more and 25 percent wish their spouse or partner would purchase some or more.

Why most don’t have enough

The No. 1 reason most Americans haven’t purchased sufficient amounts of life insurance is that they believe it’s too expensive. On average, the cost of life insurance is overestimated by two-fold.

Two-thirds say that cost-of-living expenses (mortgage, groceries, and their electric bill) are keeping them from buying some or more. Additional expenses such as internet, cable, and cellphone service are preventing 50 percent of Americans from purchasing life insurance.

A financial disconnect

Many say they are worried about paying for living expenses and saving for retirement. They are less concerned with how their spouse or loved ones will get by financially after they are gone.

In fact, half of households say they’d feel the financial impact of the primary income earner’s death within a year or less. Over 40 percent would feel the impact within six months, including nearly 40 percent of households with annual income of $100,000 or more.

An affordable life insurance solution for AOPA members

If you have loved ones who count on your income and support, you need to make sure you have enough life insurance coverage to help pay for your family’s everyday living expenses and keep their financial goals alive. Although you may have coverage provided by an employer, it may not cover you while you are flying. It's important to have supplemental coverage to protect your family.

Without enough coverage, surviving loved ones may have to sell the family home, forego college education, take out loans, or work longer into retirement to fund their nest egg.

These days, there are many resources you can turn to for help: You can ask insurance sales agents, ask trusted friends or family, or go online to find and compare plans. As an AOPA member, you also have another resource: AOPA Insurance Services.

For more information, please visit aopainsurance.org/life or call Mercer Consumer, the plan administrator, toll-free at 844/304-AOPA (2672).

The bottom line: Find an affordable, stable, and trustworthy resource you can rely on. Remember that your loved ones depend on you and your support—so make it a top priority today to make sure you have enough life insurance.

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Source for all life insurance statistics: LIMRA, Life Insurance Awareness Month, September 2015.

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