Pros Vs. Cons of Flight Insurance
In airports you'll often see vending machines selling flight insurance. You can't buy any other insurance this way, but vending machines are placed in airports to capitalize on people's fear of flying. Flight insurance can also be purchased from insurance providers, usually at a lower rate. While these policies offer peace of mind, it's important to consider the cost and compare the benefits to coverage you might already have.
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Definition
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Flight insurance is a type of Accidental Death and Dismemberment (AD&D) insurance that covers you only in a very specific instance -- when you're flying. Like other AD&D policies it pays the full benefit in case of death and portions of that benefit for injuries such as the loss of a limb or eye, according to a schedule. Typically, flight insurance covers an entire one-way trip, as long as you're flying aboard a commercial, regularly scheduled flight, with a certified pilot. The loss must occur within 365 days of the accident, and if a body is not recovered, most policies will pay after a year.
Pricing
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Flight insurance prices vary by provider and by the amount of coverage you want to purchase. Some policies provide up to $1,000,000 worth of coverage. A $100,000 policy runs at about $15, with higher coverage policies priced up to around $60. These prices are comparable to other, standard AD&D insurance policies, but the coverage is not the same. Standard AD&D policies cover accidental death or dismemberment, whether or not it's the result of a flight, and even those are so specific that you are often better off investing in a life insurance policy.
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Standard Policies
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It's important to know what you already have before purchasing further insurance. Life insurance policies, such as term or permanent life insurance, also cover AD&D, whether or not you're flying. Standard life insurance will also cover death during surgery, from bacterial infection, drug overdose and "risky" activities like a car racing, bungee jumping or skydiving, where AD&D policies don't. Life insurance policies do not cover dismemberment, but your medical insurance should cover surgeries and prostheses, and if you have disability insurance, it could cover you for loss of work.
Considerations
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Standard AD&D policies are very specific and much less likely to pay a benefit. Flight insurance is even more specific, covering you only when you're aboard a flight, boarding a flight or alighting from a flight. In all other instances during your trip, you are not covered. However, if you have no other coverage, you might want to consider flight insurance to protect your loved ones in case the worse did occur.
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