Life insurance to cover secured loan

[nakbin]

I’m considering applying to Flight Training Europe and getting a loan to pay for the course (with the help of a guarantor). However, I would like to make sure I have a decent life insurance policy.

Does anyone have any recommendations for companies that offer life insurance and loss of medical cover before taking a loan for flight training. If, for example, I died or was seriously injured during or after the course (during the loan repayment term), I want to make sure that the life insurance covers as much of the loan as possible (ideally the whole amount) so that someone else isn’t left with my debt.

I assume many people have had these concerns, although I haven’t managed to find much info about it. I imagine there may be a few insurance brokers that a lot of students have used? FTE weren’t able to offer me any advice about this.

What sort of cover is possible?
Is cover for the full course cost a possibility?
Roughly how much do these policies cost?
Any recommendations for good insurance brokers for this sort of cover?

I assume loss of medical cover would give a much lower payout – especially before actually having a job, and isn’t as big a concern as life insurance. Any advice about this? I think BALPA offer loss of medical cover but don’t know any details.

Thanks for any advice!

[nakbin]

...............?

[Mercenary Pilot]

Probably a good idea to look at terminal illness as cover for the loan and also loss of medical cover for your licence.

[veetwo]

Hi.

I also went to Flight Training Europe (recently graduated). I arranged both loss of licence and life insurance cover through BALPA.

While BALPA do not actually provide life insurance they can forward your details to a list of companies or who will consider your proposal. You will find that not all insurance companies will be willing to insure you due to the increased risk involved in flying light aircraft. I also had insurance declined because I would not be living within the UK for the duration of the course.

However, I did finally arrange a policy with Lutine (www.lutine.com). I pay around £20 a month for the cover. The policy runs for around 10 years and covers the complete amount of my loan.

The loss of medical insurance can be arranged directly through BALPA financial services. This, again, covers me for the entire loan and costs me around £13 a month.

It took quite a lot of research and time to set up these policies so I suggest you get going as soon as possible... the paperwork involved is quite formidable!

V2

[nakbin]

Thanks for your reply V2 - very helpful!