Loss of Medical/License Insurance

[AZ Typed]

What insurance companies are you using for this type of coverage for pilots: loss of license or loss of medical? Here's the situation:

You are 40 and have a heart attack - lose your medical. You had insurance that either gives you a lump sum of say $50,000 or a monthly benefit of $1000 for 24 months.

Do you have insurance like this for pilots and if so - who do you recommend for such insurance? Thanks!

AZT

 

[h25b]

What insurance companies are you using for this type of coverage for pilots: loss of license or loss of medical? Here's the situation:

You are 40 and have a heart attack - lose your medical. You had insurance that either gives you a lump sum of say $50,000 or a monthly benefit of $1000 for 24 months.

Do you have insurance like this for pilots and if so - who do you recommend for such insurance? Thanks!

AZT

There are companies that offer such to it's pilots and most of those are large corporations that self-insure. Do to the frequent need of corporate pilots to change companies I'd recommend getting a policy of your own that moves when you do. I have the maximum plan that AOPA offers. The only other company that I know of that offers such coverage is Harvey Watt and you must be an employee of an NBAA member company. My coverage is for $2500/mo. payout after a 90-day wait. During that 90 day wait they will provide assistance in the attempt to regain your medical. (after all, at that point it's in their best interests for you to be successful)...

My premium is $122.51 quarterly...

 

[bafanguy]

What insurance companies are you using for this type of coverage for pilots: loss of license or loss of medical? Here's the situation:

You are 40 and have a heart attack - lose your medical. You had insurance that either gives you a lump sum of say $50,000 or a monthly benefit of $1000 for 24 months.

Do you have insurance like this for pilots and if so - who do you recommend for such insurance? Thanks!

AZT

AZ,

You didn't mention where you're working now but Watt will also cover a pilot in a 121 carrier; I had it for many years. From what I recall, Watt has a pretty good reputation.

 

[G100driver]

h25b: Without being too specific, how many airplanes does your flight department have? Are you getting a discount because of flight department size? Also, are you paying the entire premium (after tax) as to assure that you do not have to taxes on the payout?

We are researching this right now. Thank-you for any info that you can provide.

 

[h25b]

h25b: Without being too specific, how many airplanes does your flight department have? Are you getting a discount because of flight department size? Also, are you paying the entire premium (after tax) as to assure that you do not have to taxes on the payout?

We are researching this right now. Thank-you for any info that you can provide.

I would certainly advise working out some sort of deal with your employer (if they would consider it) where you got the policy on your own and it got paid for with after-tax money so like you said you have no tax to pay upon it's pay-out... Additionally make sure you get it set up so that you can take it with you should you leave the employ of your current company, assuming you're willing to start picking up the premiums... We're a very small department/company and do not offer anything like this. I just have my own policy for peace of mind through AOPA...

 

[AZ Typed]

http://www.harveywatt.com/

They seem to have what I'm looking for. Do we know if AOPA offers disability/lump sum medical coverage for pilots (135 - small operation)?

Thanks for all the help folks...

AZT

 

[G4G5]

Does anyone know of any flight departments that pick up the cost for their pilots?

 

[Bebop]

Does anyone know of any flight departments that pick up the cost for their pilots?

Its not your traditional flight department but NetJets has short term and long term disability insurance that is company paid.

24.6 Disability Salary Continuation, Long Term Disability Insurance, Loss of Medical Certificate Disability Benefit and Aero-Medical Benefits
[FONT=Arial,Arial]All Crewmembers covered under this Agreement shall be entitled to a salary continuation benefit if the pilot becomes disabled within the meaning of the salary continuation plan document. Crewmembers who are notified of LTD eligibility are required to immediately file an LTD claim according to the procedures outlined in the appropriate plan documents. Failure to do so may result in postponement of benefits.

The salary continuation benefit equals sixty (60) percent of a pilot’s base salary on the date of disability (subject to increases the pilot would have received but for the disability) and shall continue for one hundred and eighty (180) days from date of disability. A pilot may elect to use paid sick days for any portion of the benefit period, provided those days a pilot elects to use a paid sick day shall be charged against the one hundred and eighty day (180) benefit period.

All Crewmembers covered under this Agreement shall receive long-term disability benefits equal to the lesser of sixty (60) percent of a pilot’s base salary (subject to any increases in salary the pilot would have received but for the disability) or five thousand ($5,000) dollars per month beginning the one hundred and eighty-first (181st) day of disability in accordance with the terms and conditions of the Company’s regular and loss of medical long term disability plan documents.

Subject to the qualification requirements of the Company’s loss of medical disability benefit, [/FONT][FONT=Arial,Arial]pilots shall receive a two (2) year loss of medical certificate insurance benefit equal to the lesser of sixty (60) percent of a pilot’s base salary (subject to any increases the pilot would have received but for the disability) or five thousand ($5,000.00) dollars per month beginning on the one hundred and eighty first (181st) day of disability. For purposes of the loss of medical disability benefit, the definition of disability shall include disqualifying conditions set forth in FAR Part 67.

Should a disability qualify for benefits payable under either the regular or loss of medical disability plans, or both plans concurrently, the aggregate benefit may not exceed sixty (60) percent of the pilot’s base monthly salary or $5000.00 per month from both sources.

Pilots shall receive aero-medical benefits through Virtual Flight Surgeons and approved providers. Virtual Flight Surgeons shall serve as claims administrator for the benefits referred to in Section 24.5.

There shall be no employee contribution towards the cost of the benefits set forth in Section 24.5. Medical expenses and incidentals not covered by insurance shall be paid for by the Company. Benefit levels, eligibility and other terms and conditions of coverage shall be as set forth in the various plan documents in existence at the time this Agreement is made, copies of which shall be made available to all Crewmembers. The claims administrator, benefit levels, eligibility criteria and all other terms and conditions of coverage shall be maintained until amended. The claims administrator may be changed by mutual consent of the Company and the Union in the event of inadequate service, nonperformance of duties, unreasonable rate increases and/or change in control. The Company reserves the right to add to or change insurance carriers and/or substitute a different financing method at any time. [/FONT]

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[G100driver]

G4G5:

FYI. The best way to set this up is to have a salary increase that equals the amount of the payment and you pay the premium yourself (or through payrole) AFTER taxes.

This will make your benefit payout non-taxable. By doing it this way, your premium, in effect, is lowered to give you an income close to what your take home is now if in the event you loose your medical.