What happens if a pilot declines an additional premium modification on a life insurance application?

When a pilot declines an additional premium modification on a life insurance application, the insurer may choose to issue the coverage with an Aviation Exclusion. This means that while the insurance coverage is provided, any claims resulting from aviation-related activities may not be covered.

Insurers assess the risk associated with aviation because it is inherently more dangerous than other activities, and pilots are often charged higher premiums to reflect that risk. If the pilot opts out of paying the additional premium necessary for full coverage, the insurer will still provide a policy but will protect itself from potential high claims resulting from aviation-related incidents by including the exclusion.

This provides a balanced approach for both the insurer and the insured — the pilot can still obtain coverage, albeit with limitations, reflecting the increased risk associated with their flying activities.