Loss of Licence Insurance

[inandout]

Can any one recommend a good Loss of Licence Insurance Company.

[skylane]

Recommend the Mutual Benefits Fund run by the AFAP, best rates in Australia. You have to be a member of the AFAP, but I have seen operators organise their own loss of licence for staff through their insurance brokers, and the returns offered are about half MBF returns.

[Ando1Bar]

The mutual benefit fund works well - around $1100+ per year depending on your age. Pretty expensive but one of the best kept secrets in GA is (from the Award):


In addition to all other remuneration prescribed by this award the employer will pay to each pilot on permanent hire an annual allowance of up to $1398.00 to assist the pilot to hold adequate insurance against loss of licence. Payment of the allowance will be made on the last date for payment of salary in April of each year on production by the pilot of proof of payment.


Most GA organisations don't make a lot of noise about that.

As well as good loss of licence cover there is a good life insurance benefit too.

I found it very difficult to find any other sort of decent cover as most insurance companies believe we are a real risk unless you fly an 'airliner'. They don't consider you a commercial pilot unless you fly a Boeing.

[Captahab]

but I have seen operators organise their own loss of licence for staff through their insurance brokers, and the returns offered are about half MBF returns.

they do, but in most cases the conditions say they will pay you when you are no longer employable... full stop.

If it is correct pilot insurance it should state that they will pay you when you are no longer employable as a pilot. A slight difference ?

Read the conditions again on company insurance and you will see why they prefer it and why it costs half as much.

[Counter-rotation]

KNOW THE BLOODY AWARD!!! :ok:

CR.

[go_soaring]

Commonwealths CommInsure runs a good one, reasonable monthly cost too. For a $100k income, it costs approx $120.

The cover insures you for 80% of your insured yearly wage, up to $2mil payout or 65yrs of age (which ever comes first). They pay 9% into your super fund too..

Not that I'm, or we as a pilot group is above anyone else - but I asked about the loss of my medical, for example. If I were to loose my hearing, but can still push trolleys at the local supermarket, do I have to do that as I'm still capable of earning money? The answer was, no. As long as you don't have any other qualifications. So I was advised not to further my skills - thankfully I have no intention of doing any further degrees!

The guy who looked after me has been working in the property world for the commonwealth for 10+yrs, and has recently moved internally across to the financial planning game. He has 2-3yrs experience in this area, and is very enthusiastic and knowlegable. I would highly recommend you give him a call. Send me a PM if you're interested.

I'm not sure what the story is with having two funds running at the same time though, I hear that if one (AFAP for instance) hears about the payout through another provider, they may ask for their money back. Take that with a grain of salt, and do your own research there.


go_soaring! instead