Roberta Aguirre
From the 1950s to the 1970s, vending machines were used at airports to sell life insurance policies to nervous travellers. These policies would cover death in the event that the buyer's flight crashed. The machines were first installed by an insurance underwriting company in 1951, and were common in North America, with policies costing $2.50, paid in quarters. However, pilots' associations lobbied against the machines, as they felt that selling insurance in this way encouraged the sabotage of flights. Over time, as travellers grew accustomed to air safety, the demand for pre-travel life insurance decreased, and the machines eventually faded away.
| Characteristics | Values |
|---|---|
| Time period | 1950s-1970s |
| Cost | $2.50, paid in quarters |
| Maximum coverage | $62,500 |
| Current availability | No longer available |
| Reason for discontinuation | Improved air safety, reduced demand |
| Alternative | Kiosk-led solutions at airports |
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What You'll Learn
Life insurance vending machines were once common in airports
Life insurance vending machines were once a common sight in airports, particularly during the 1950s and 1960s. For a few coins, travellers could purchase peace of mind before boarding their flights. These vending machines were introduced by insurance underwriting companies and were first installed at Vancouver International Airport (YVR) in 1951. At that time, for every quarter inserted into the machine, one could purchase $5,000 worth of life insurance, with a maximum of $25,000 worth of coverage for $1.25. This eventually increased to a $75,000 maximum.
The machines were also prevalent in North America, with Tele-Trip Insurance, founded by John M. Shaheen, offering policies for $2.50, paid in quarters. Similar machines could be found in Japan and Taiwan, and they were once a common feature at Detroit's Willow Run Airport in 1954. The machines typically insured travellers for "accidental loss of life, limb or sight and other injuries" during their flights.
However, the demand for these vending machines decreased over time as air travel became safer and more routine, eliminating the perceived need for pre-travel life insurance. Pilots' associations also lobbied against the machines due to concerns about insurance fraud and the potential encouragement of flight sabotage. Despite these controversies, the machines largely faded away rather than being explicitly outlawed, aside from a ban on airport insurance vending machines in the State of Colorado following a bombing in 1955.
While life insurance vending machines may no longer be common in airports, the concept of last-minute insurance purchases remains relevant. Some companies have introduced kiosk-led solutions at airports to offer travellers a simple and hassle-free way to purchase travel insurance before their trips.
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The machines were introduced in the 1950s and 60s
It is no longer possible to buy life insurance at the airport, although this was possible in the past. The machines were introduced in the 1950s and 60s, with the first appearing at Vancouver International Airport in 1951. At the time, air travel was a relatively new mode of transport, and the safety record was not as impressive as it is today. As a result, travellers often sought additional peace of mind before boarding their flights. For a few quarters, passengers could purchase life insurance from a vending machine, which would provide coverage in the event of a crash. The policies typically covered "accidental loss of life, limb or sight and other injuries" during flights.
The machines were introduced by insurance underwriting companies, such as Fidelity & Guaranty Co. of New York and Tele-Trip Insurance Co., which was founded by Lebanese-American entrepreneur John M. Shaheen. Shaheen, who also served as President Richard Nixon's ambassador to Colombia, became known for introducing these machines to airports throughout North America. At the time, for every quarter inserted into the machine, a traveller could purchase $5,000 worth of life insurance, with a maximum of $25,000 worth of coverage for $1.25. This eventually increased to a maximum of $75,000.
While the machines were profitable for insurance companies, they were controversial. Pilots' associations lobbied against them, arguing that they encouraged the sabotage of flights. Their fears were not unfounded, as several insurance frauds were perpetrated, including a case in 1955 where a bomber killed 44 people on a United Air Lines DC-6B over Longmont, Colorado. Following this incident, the State of Colorado banned airport insurance vending machines. Despite this, the machines remained a common sight at airports throughout the 1950s and 1960s.
Over time, however, the demand for pre-travel life insurance decreased as air travel became safer and more routine. Travellers grew accustomed to air safety, and insurance from other sources reduced the need for specialised flight insurance. As a result, the machines gradually faded away, and today, it is uncommon to find life insurance vending machines at airports in North America.
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They sold policies for $2.50, paid in quarters
In the 1950s, vending machines at airports in North America sold life insurance policies for $2.50, paid in quarters. These policies covered "accidental loss of life, limb or sight and other injuries" during flights. The machines were first installed by an insurance underwriting company in 1951, and they remained prevalent in airports until the 1970s. The leading underwriters of this kind of insurance in the 1950s were Fidelity & Guaranty Co. of New York and Tele-Trip Insurance Co., which was founded by John M. Shaheen.
Tele-Trip Insurance Co. was responsible for the vending machines that sold life insurance policies in airports throughout North America. These policies were typically sold before embarking on a flight and came with warnings such as "Do Not Purchase More Than a Total of $62,500 Principal Sum - Nor for Travel on Other Than Scheduled Air Carriers." The machines were also common in countries like Japan and Taiwan, where they may still exist today.
The idea behind these vending machines was to provide last-minute insurance to travellers before they boarded their flights. For every quarter inserted into the machine, the insured person would receive $5,000 worth of life insurance. The maximum coverage initially available was $25,000 worth of insurance for $1.25, which eventually increased to a maximum of $75,000.
However, these insurance vending machines eventually fell out of favour due to several factors. Pilots' associations lobbied against the machines for years, citing concerns over insurance fraud and the potential encouragement of flight sabotage. Additionally, as air travel became increasingly safe and routine, the demand for pre-travel life insurance decreased.
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The machines were removed due to safety concerns
While it is no longer possible to buy life insurance at the airport, this was once a common practice. From the 1950s until the turn of the century in 2000, vending machines were used at airports to sell life insurance policies to nervous travellers. The machines were first installed by an insurance underwriting company in 1951, and for every quarter plugged into the machine, you'd get $5,000 worth of life insurance. The maximum amount of insurance one could initially buy was $25,000 worth of coverage for $1.25, and that eventually increased to a $75,000 maximum.
Over time, the demand for pre-travel life insurance decreased as air travel came to be perceived as safe and routine. The prominence of insurance vending machines and booths at airports, such as in the concourses, were seen as insults to commercial aviation, which had a good safety record. As a result, the airport flight insurance kiosks and machines mostly just faded away.
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Life insurance can now be bought at the last minute online
Life insurance is no longer available at airport vending machines in North America. The practice, which was common in the 1950s, 60s, and 70s, has been discontinued due to a decrease in demand as air travel became safer and more routine.
However, the good news is that you can now buy life insurance at the last minute online. Instant life insurance offers quick coverage, often within minutes of applying, and without the need for a medical exam. This is possible due to accelerated underwriting, where an insurer uses algorithms to calculate your risk of dying early based on data about your health, lifestyle, and other factors.
While the application process is faster, instant life insurance policies typically have a maximum death benefit of $1 million, and average premiums are often higher than standard life insurance policies. These policies are usually term life policies, covering a certain timeframe such as 10, 20, or 30 years.
To apply for instant life insurance, you fill out an online application with your personal and contact details, answer questions about your health and lifestyle, and give the company permission to retrieve additional information about you from various databases. You will typically receive a decision within minutes of submitting your application.
Some companies offering instant life insurance include Legal & General America, Foresters Financial, and Banner Life. These companies provide competitive rates and term lengths, even for individuals with a history of medical conditions.
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Frequently asked questions
No, you can no longer buy life insurance at airports. While it was common in the 1950s and 1960s to have vending machines or kiosks selling life insurance at airports, the practice has since died out.
The demand for pre-travel life insurance decreased as air travel became safer and more routine. Travellers also started obtaining insurance from other sources, reducing the need for airport life insurance.
Airport life insurance policies were priced at $2.50, paid in quarters. The maximum amount of insurance one could purchase was $62,500.
Airport life insurance covered "accidental loss of life, limb or sight and other injuries" during flights.
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