Having lost my licence last year at the grand old age of 41, due to newly diagnosed Type 2 Diabetes I feel eligible to comment. At early middle age I am now looking to have to spend to retrain for a new career having flown for the last 20 years and not being qualified to do anything else.
Loss of Licence Insurance covers the unexpected. We all have medicals once or twice a year and normally pass them without any problems. But ANYONE can be diagnosed with something totally unexpected and suddenly everything changes in your life. A Doctor friend has just been diagnosed with non-operable lung cancer which has already spread into his bones. He is 33, never smoked and is/was a marathon runner. He knows he will be lucky to see 3-4 months.
You have got to think whether you have the finances to continue to pay your bills if you lost your licence tomorrow. Most of us couldn't. You young guys that have borrowed huge sums to get into this game - Where would you be?
Loss of Licence Insurance is as it says - an Insurance. It is covered by insurance premium tax, the same as your car, house, pet or Life insurances, currently at 5% of premium. Therefore there is no tax penalty if they have to pay out (incidently only after you have lost your ticket for 6 months. Do you have a salary that will pay for that period?).
For those of you with company LoL schemes, check your contract to see what you are insured for. If you feel you need more to cover your mortgage/bills in the event, either speak directly to your insurance company
or your HR department and arrange to top-up. Check the policy annually to make sure it is being increased in line with pay rises. Be honest on the proposal forms - if there is any chance of getting out of paying, the insurance companies will find it.
For those of you without company schemes - get insured. The BALPA scheme is regarded as one of the best in terms of cost & simplicity.
Stay healthy
Jon