We are unable due to regulations to offer specific advice. Below are general guidelines for guidance.
Commercial Pilot Insurance
No two pilots’ circumstances are the same, and you may find few airlines these days offer comprehensive benefit packages, so you need to consider whether you need to top up your cover with Loss of Licence insurance.
As a general guide, you need enough cover from all sources to enable you to pay the bills if you are unable to work for a period of time, to clear your debts if you lose you medical permanently, and have an income whilst you transition yourself to a life without flying.
How will this look in practice?
Lump sum and/or monthly benefit
If you have debts, you will take out Loss of Licence lump sum cover to enable these debts to be repaid if you cannot continue your flying career. Whilst paying off your debts is a fantastic feeling, the repayments probably only account for less than 35% of your take-home pay.
You will take out Loss of Licence monthly benefit cover to give you an income whilst you are off sick to enable you to pay the bills and also to give you an income until you return to work or whilst you transition your lifestyle to life without flying.
Topping up your employer’s cover
You are not limited to only one Loss of Licence monthly benefit policy; you can have as many as you wish. For instance, if your employer gave you full sick pay for 6 months, then half pay for 6 months, you could have cover with a 180 days deferred period to provide extra income whilst you are on half pay, and then also arrange extra cover with a 365 days deferred period to top up your other cover for when your pay stops.
One of the unique features of our Loss of Licence monthly benefit policy is that whilst there are limitations on how much monthly cover you can take out if you have lost your medical permanently, we will not restrict your ongoing benefit just because you have secured a well-paid job outside of flying.
Trainee Pilot Insurance
You should look to take out Loss of Licence lump sum benefit to cover the amount you have or will spend on your training although sometimes a lender may require you to take out a slightly higher amount. You would normally take out the lump sum cover so that any borrowing or perhaps gifts from relatives could be repaid if you were unable to regain your medical. Even if your lump sum was a gift from a parent or relative, mention this cover to them; you may be surprised how interested they are!
How will this look in practice?
Additional Cover
Loss of Licence monthly benefit cover is an additional cover that may be appropriate if you have loan repayments and/or contractual accommodation expenses that will still need to be paid if you lose your medical temporarily.
You may also wish to repay relatives and loans if you were to die, and some lenders require you to have a life policy in place if they lend to you, so life cover is also available.
Review your cover
When you secure your first job as a commercial pilot, it may be that your employer offers some Loss of Licence cover. Before you cancel your policy with us, you need to consider not only the cost of your training but how much compensation you personally require if your dream job is taken away from you through ill health. An extra lump sum as compensation can ease the transition to a non-flying career.
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