Do Airline Pilots Need Life Insurance Outside of Work?

If you’re an airline pilot, you’ve likely considered the risks that come with the job and the financial impact your absence could have on your loved ones. Supplemental life insurance beyond what’s offered by your employer can be a critical part of protecting your family’s future. Life insurance needs are deeply personal and situational. For many pilots, especially those with families, having private life insurance outside of work isn’t just a good idea, it’s essential.

What Airline-Provided Life Insurance Covers

Most airline employers offer some form of life insurance as part of their benefits package, typically in the range of $850K to $1M. While this is a helpful foundation, it’s often not enough to fully protect a family’s long-term financial needs, especially when you factor in mortgage debt, college funding, and income replacement. Even more concerning is that this coverage is tied to your employment. If you leave the airline, retire, or become medically disqualified from flying, that policy may disappear, or become prohibitively expensive to keep.

The Risk of Delaying Private Coverage

A commonly overlooked risk of relying solely on work-provided life insurance is what happens when you’re no longer flying. Many pilots retire in their 60s, and by that time, qualifying for new life insurance may be extremely costly or even impossible due to health changes. If your family still relies on your income, or you haven’t built enough wealth to be self-insured, you could be left vulnerable. Locking in a private policy while you’re younger and healthier gives you far more control and predictability. Ideally, with proper financial planning, life insurance won’t be necessary by the time you reach age 65. However, that’s only possible if you plan ahead.

How Much and What Kind?

When purchasing life insurance outside of work, term life insurance is usually the most suitable option for pilots. With strong earning potential and a long career runway, most pilots should be steadily building wealth. Term life insurance offers high coverage for a low cost during your prime earning and family-raising years. Ideally, once your term policy ends, your accumulated assets should be enough to support your loved ones without insurance.

Permanent life insurance products are often marketed as investment tools, such as whole life or universal life. However, they tend to be expensive and unnecessarily complex. For most pilots, the focus should be on growing net worth and achieving financial independence. Avoid tying up funds in a policy that mixes investing and insurance in a way that often benefits the insurer more than the policyholder.

Other Considerations

There are several other scenarios where having life insurance outside of work is especially important. If you have a stay-at-home spouse or young children, your financial responsibilities could extend beyond your flying career. If you’ve recently taken on significant debt, such as purchasing a new home, or your spouse relies on your income to care for the family, a term policy that spans those obligations can provide peace of mind. Also, for pilots working under a union contract, life insurance benefits may be subject to renegotiation or coverage limits that don’t reflect your true needs.

The Bottom Line

Employer-provided life insurance is a great starting point, but it shouldn’t be your entire plan. Life insurance is about protecting the people who depend on you. Purchasing your own term policy gives you the right coverage, for the right amount of time, on your own terms. It gives you the flexibility to retire or step away from flying when you’re ready, not when your benefits dictate it. Most importantly, it gives you peace of mind knowing your family will have protection financially, no matter what the future holds.

Be sure to work with an independent insurance broker who can shop policies from multiple providers to find the right fit for your situation. At Wiser Wealth Management, we don’t sell life insurance, but we do help you determine how much coverage you need as part of your comprehensive financial plan. Click here to schedule a consultation with one of our advisors to see what’s best for your situation.