Affording Life Insurance: Apollo Astronauts' Dilemma

The Apollo 11 astronauts, Neil Armstrong, Buzz Aldrin, and Michael Collins, were unable to afford life insurance coverage. At the time, a life insurance policy would have cost $50,000, a large sum compared to their $17,000 salary. As a result, they devised an alternative plan to provide for their families in case of their deaths: they signed hundreds of postal covers, which they left in the care of a trusted friend. These autographs, known as Apollo insurance covers, were intended to be sold by their families if the astronauts did not return from their mission. This strategy proved unnecessary, as the astronauts returned safely and the signed covers remained in their possession for many years. However, some of these autographs began to appear at auctions in the 1990s, selling for substantial amounts.

Apollo 11 astronauts' salaries

The Apollo 11 astronauts' salaries were as follows:

• Commander Neil Armstrong: $27,401 per year, the highest-paid of the flying astronauts. In 2019 dollars, this would be $190,684. Accounting for inflation, Armstrong was paid $230 for his time on the moon.
• Lunar Module Pilot Edwin "Buzz" Aldrin: $18,623 per year, including base pay, quarters, subsistence allowance, and flight pay. In 2019 dollars, his salary would be $129,598.
• Command Module Pilot Michael Collins: $17,148 per year, including fringe benefits. In 2019 dollars, this would amount to $119,333.

The Apollo 11 crew did not receive any special treatment in terms of salary and were paid according to the federal government's General Schedule (GS) payscale. Their salaries were comparable to those of other US military officers, as most of the astronauts held the rank of captain.

In addition to their salaries, the Apollo 11 astronauts received an $8 per diem for the mission to the moon, the same rate they would have received for being away from base. This amount was subject to deductions, including $3.75 per day for accommodations provided by the government on the spaceship.

At the time, life insurance was not included in the astronauts' government-provided benefits package, and the high cost of a policy made it unaffordable for them. As a result, the astronauts devised a creative solution by signing autographs on postal covers, known as "insurance covers," which their families could sell in the event of their deaths.

Cost of life insurance policies

The cost of life insurance policies varies depending on several factors, including age, gender, health, lifestyle, policy type, coverage amount, and term length. Generally, younger people pay less for life insurance than older people as they are less likely to have health problems. Women also tend to pay less than men of the same age and health because women have longer life expectancies.

The cost of a 10-year, $250,000 term life insurance policy for a healthy 20 to 40-year-old is typically between $24 and $29 per month. On the other hand, a 20-year, $250,000 term life insurance policy for a healthy 30-year-old costs under $200 per year on average.

The type of life insurance policy also affects the cost. Term life insurance is generally the least expensive as it lasts for a set number of years and does not build cash value. Permanent life insurance, on the other hand, typically lasts a lifetime and includes a cash value component, making it more expensive than term life insurance.

The cost of life insurance can also be affected by controllable factors such as smoking status and participation in risky activities. Smokers tend to pay higher rates due to the increased risk of developing health issues. Similarly, individuals who engage in dangerous hobbies like skydiving may be charged higher premiums.

In the case of the Apollo astronauts, they faced a challenge in obtaining life insurance coverage due to the high cost and the refusal of life insurance companies to provide coverage for such a dangerous mission. As a result, they devised a creative solution by signing hundreds of postal covers, which they left for their families to sell in the event of their deaths.

Autographs as insurance

The Apollo 11 mission was a risky endeavour, and the astronauts were aware of the dangers involved. However, life insurance policies were extremely expensive for such missions and would not have adequately supported the astronauts' families. Private insurers were unwilling to provide coverage for astronauts due to the high risks involved in space missions. As a result, the astronauts devised a unique strategy: they signed hundreds of autographs known as "covers" or "insurance covers". These were signed envelopes postmarked on significant dates, such as the day of the launch or the lunar landing. The autographs were distributed to the astronauts' families, who could then sell them in the event of the astronauts' deaths. This ensured that their families would have financial support if the worst were to happen.

The astronauts' friend, Al Bishop, played a crucial role in this process. He was entrusted with the autographs and ensured they were postmarked on the important dates. The "Bishop Covers" became one of the two varieties of the Apollo 11 covers, the other being produced by the Manned Spacecraft Center Stamp Club in Houston, Texas ("MSCSC Covers"). The tradition of signing autographs as insurance continued with the crews of Apollo 12 through 16 until 1972.

The Apollo 11 insurance autographs were never needed, as the astronauts returned safely from their mission. However, in the 1990s, these autographs began to appear in space memorabilia auctions, fetching incredible prices. An Apollo 11 insurance autograph can now cost as much as $30,000. This demonstrates the value that people place on these historic mementos and the demand for signatures from American heroes.

The use of autographs as insurance was a creative solution to the challenge faced by the Apollo astronauts in obtaining affordable life insurance. It ensured that their families would have financial security in the event of a tragedy. This unique approach to insurance highlights the determination of the astronauts to protect their loved ones and the value that society places on their extraordinary achievements.

Apollo 11 insurance covers

The Apollo 11 astronauts, Neil Armstrong, Buzz Aldrin, and Michael Collins, were unable to secure life insurance coverage before their historic 1969 mission. At the time, a life insurance policy would have cost $50,000, an exorbitant amount compared to their $17,000 salary.

As a creative solution, the astronauts signed hundreds of postal covers, known as "Apollo insurance covers" or "insurance autographs". These were autographed envelopes, often featuring a mission emblem or cachet, that were postmarked on significant dates such as the day of the launch or the lunar landing. The astronauts left these covers with trusted friends or family members, who could then sell them to collectors in the event of the astronauts' deaths. This ensured that their families would have financial security.

The Apollo 11 insurance covers are particularly valuable because they were the first of their kind and were part of the historic first lunar landing mission. There were three varieties of the Apollo 11 covers, each with a unique design: the large Apollo 11 mission emblem cover, the Project Apollo DowUnicover, and the NASA Manned Spacecraft Center Stamp Club cover. The crew signed these covers while in pre-flight quarantine, and they were postmarked on July 16, 1969 (the launch date) or July 20, 1969 (the lunar landing date).

The idea for the insurance covers is attributed to Matthew and Eunice Radnofsky of Seabrook, Texas, who produced them with the help of the Manned Spacecraft Center Stamp Club in Houston, Texas. The stamp club arranged the logistics, and the covers were kept by the club and the astronauts' families during the mission. After the astronauts returned safely, the covers were stored away or dispersed. Today, these covers are highly sought-after collectibles, with some selling for as much as $30,000 at auction.

US government's role

The US government played a significant role in the Apollo astronauts' quest for life insurance. The Apollo missions were undertaken by NASA, a US government agency, and the astronauts were government employees. As such, their salaries were determined by the General Schedule (GS) payscale, which did not provide enough income to cover the high cost of life insurance.

At the time of the Apollo 11 mission, an astronaut earned an annual salary of $17,000, while a life insurance policy cost $50,000. This meant that the astronauts had to devise an alternative way to provide financial security for their families in the event of their deaths.

The US government, through NASA, was responsible for the selection and training of the Apollo astronauts. These astronauts became famous, particularly the crew of Apollo 11, and people were eager to obtain their autographs. Recognizing the value of their signatures, the astronauts signed hundreds of postal covers (envelopes) before their missions, which were then postmarked on significant dates, such as the day of launch or the day of the lunar landing.

These autographed postal covers, known as "Apollo insurance covers," were left with a trusted friend or ally, who was designated to distribute them to the astronauts' families in the event of their deaths. The families could then sell these valuable collectibles to fund their day-to-day lives, their children's education, and other expenses.

The practice of creating these insurance covers began with Apollo 11 and ended with Apollo 16. The covers from Apollo 11 typically fetch the highest prices due to the historical significance of that mission.

Frequently asked questions