A pilot applies for Life insurance but declines a modification due to an additional premium. What is the insurer most likely to issue?

When a pilot applies for life insurance and chooses not to accept a modification that would require an additional premium, it is customary for the insurer to issue a policy with an Aviation Exclusion. This exclusion means that the insurer will not cover any claims arising from incidents related to aviation activities, which are considered higher risk.

By not accepting the modification, the pilot is indicating a reluctance to pay for the increased premium that compensates the insurer for the added risk associated with aviation. As a result, the insurer protects itself from potential claims resulting from the pilot's aviation-related activities while still providing coverage for other, non-aviation related risks. This approach helps the insurer balance the risk it takes on while still offering a policy to the applicant.

The other options do not align with the insurer's typical response in this situation, as they either provide full coverage without addressing the specific risk or involve policy structures that are not suited to a situation where the applicant declines modification for a higher premium.