Back through the 1990's a couple of LOL providers got burned when they paid out the full claim and 18 months later the claiment got his license back (I worked with two of the claiments back then) At that point the LOL providers started insisting on a full revocation of license with no chance of ever getting it back.
In late 1997 my license was suspended for a medical problem that could have stopped me for good, I was asked by the CAA if I wanted to claim my LOL, on the proviso that was it for ever. I stuck with it and got my license back 7 months later with a two crew stipulation which came off a year later. CAA medical department were fantastic, the help, support and advice I got from them was far better than anything from any of the hospital doctors I dealt with at the time.
I use a PHI product (Permanant Health Insurance) that my broker first fixed for me in 2001. If I'm medically grounded it kicks in after 6 months (contract sick leave) pays full salary for a year and then two thirds until retirement. BUT the small print says it pays while I can't work in a job I'm suitably qualified for. That is a definition I've never tested, but possibly leaves them holding all the aces.
SND