Flight Insurance – is it worth it?

In the wake of the recent TransAsia plane crash in Taiwan the question comes to mind of whether or not “flight accidental death coverage” is worthwhile?

Statistically, flying on a commercial airline is one of the safest forms of travel.  It’s been reported that the odds of being killed in a plane accident is 1 in 11,000,000.

How does that relate to buying “flight accidental death” insurance?  Most insurance professionals will tell you that you shouldn’t buy “flight accident” coverage but instead you should have adequate life insurance that will cover you 24/7.

There is some confusion concerning whether flight insurance is “life insurance” and you can see why by viewing a prior article that I wrote a couple of years ago:  Flight Insurance – what is it?.

Unlike many recommendations made by insurance professionals that don’t understand travel insurance I have to agree with this one – life insurance is the better option.

The economics of “flight accidental death insurance”  are also a good indication of value.   You can buy a flight accidental death policy that provides $100,000 of principal sum coverage for $14 which might seem reasonable however, back in the day, when I worked for a large insurance company, the net rate for $100,000 of flight insurance was just less than $ .10 – with a payout rate that low it’s not worthwhile.

However there will always be travelers who feel more secure by buying flight accident insurance.  I remember an executive at that large insurance company that would visit me every time he had to fly on business.  I once asked him why he bought the flight insurance before every trip when he knew the statistics as well as I did.  His answer was more emotional than logical because he told me that he felt safer buying the insurance.

Just goes to show you that buying insurance is a personal choice.

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