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Complete Coverage Comparisons

To have complete protection a pilot must provide simultaneously for retirement, death, and disability. Consider the case of a pilot earning $9000 annually from age 30 to age 60. Each month he would be taxed $58.13 under the ALPA plan. If instead he invested in this same $58.13 with a Commercial insurance company, he could purchase protection as follows.

[[3 column table]]
| --- | Commercial | ALPA |
| RETIREMENT(per month) | $255.50 or $304.06 (1) | $255.50|
| DEATH (lump sum) | $12.898 or 0.00 (2) | $0.00 (3) |
|DISABILITY (per month) | $216.67 | $0.00 to $ 255.50 (4) |
[[/3 column table]]

(1) The pilot may have $304.06 annuity by drawing on his $12.898 life insurance.

(2) The pilot draws the 304.06 annuity, his life insurance will eventually be reduced to $0.00 but, if he dies before the $12,898 is depleted, his estate receives the unused balance.

(3) If the pilot dies prematurely, the annuity paid to his dependents will probably deplete his life insurance to $0.00.

If the pilot dies after retirement, the annuity previously paid to him will probably deplete his life insurance to $0.00.

(4)Disability at age 30 probably will provide no annuity; disability at age 60 will provide $255.50 annuity.