Loss of Licence Cover
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Loss of Licence Cover
Ok - so does anybody out there know 'who to recommend' on Loss of Licence Insurance. Although a member of BALPA, i'm not convinced their the best to use.
This is in addition to Company schemes - for that added cushion ( just in case ! )
This is in addition to Company schemes - for that added cushion ( just in case ! )
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Not sure if you got anywhere with this, but I am looking for cover at the moment. I'd greatly appreciate some thoughts on the matter of Loss of Licence Cover ie who has the best open-market policy for those of us not covered by company schemes.
Join Date: Sep 2000
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Forget loss of licence.
Work out the total gross salery you will earn to retirement then double it.
Then take out term life insurance for this new sum for the number of years to retirement.
Write it all in trust for your kids to mitigate tax.
Chances are if you loose your licence medically you will be dead in two years, if you do not you will be fit enough to work in a proper job.
Work out the total gross salery you will earn to retirement then double it.
Then take out term life insurance for this new sum for the number of years to retirement.
Write it all in trust for your kids to mitigate tax.
Chances are if you loose your licence medically you will be dead in two years, if you do not you will be fit enough to work in a proper job.
Last edited by scanscanscan; 16th Sep 2005 at 18:42.
Scanscan: so lets see:
pilot aged 30, has 30 more years to work@£40000/yr = £1,200,000, double it = 2.4 million.
Term insurance will cost about £400/month for this.
Secondly, term insurance only pays out when you die....fat lot of good it is to you if you dont then.
I know of several pilots who have 'lost their licence': 2 x diabetes and 1 x heart murmer.
They most certainly aren't going to die for a very long time - 2 years is way off the mark. Now they needed cover immediately, which is what this thread is all about.
So why dont you read the thread properly and stop coming up with a load of twaddle?
For others who want the name of a superb LOL company, PM me.
[I'm not connected to them in any way, but they have been faithful when tested in anger].
pilot aged 30, has 30 more years to work@£40000/yr = £1,200,000, double it = 2.4 million.
Term insurance will cost about £400/month for this.
Secondly, term insurance only pays out when you die....fat lot of good it is to you if you dont then.
I know of several pilots who have 'lost their licence': 2 x diabetes and 1 x heart murmer.
They most certainly aren't going to die for a very long time - 2 years is way off the mark. Now they needed cover immediately, which is what this thread is all about.
So why dont you read the thread properly and stop coming up with a load of twaddle?
For others who want the name of a superb LOL company, PM me.
[I'm not connected to them in any way, but they have been faithful when tested in anger].
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Personally I used to have a policy through Traffords, (Global) but have now moved to BALPA's policy for a few reasons.
My company has instigated "self-insured" coverage for both loss of licence and PHI. i.e any claim will be paid from the pocket of my employer, so I will be on my own trying to fight my employer to get a payout. Also, they have introduced various exclusions, which are quite ambiguous, and legal advice has suggested that unless you were sitting at home quietly (which I don't do very often) and something fell on you, any accident or injury could be argued against.
The other reasons though were that BALPA's policy offers the chance of upping your premium very slightly and getting temporary benefits after only a 3 month waiting period. If the temporary benefit is paid, it does not have to be repaid if you get your licence back before the 2 years is up.
Also, it has no exclusions as far as activities go so you can go skiing, sailing, quad biking to your heart's content and not worry.
Finally, you can pay monthly and I don't think it cost any more than paying a lump sum, or if it was, it wasn't very much.
My company has instigated "self-insured" coverage for both loss of licence and PHI. i.e any claim will be paid from the pocket of my employer, so I will be on my own trying to fight my employer to get a payout. Also, they have introduced various exclusions, which are quite ambiguous, and legal advice has suggested that unless you were sitting at home quietly (which I don't do very often) and something fell on you, any accident or injury could be argued against.
The other reasons though were that BALPA's policy offers the chance of upping your premium very slightly and getting temporary benefits after only a 3 month waiting period. If the temporary benefit is paid, it does not have to be repaid if you get your licence back before the 2 years is up.
Also, it has no exclusions as far as activities go so you can go skiing, sailing, quad biking to your heart's content and not worry.
Finally, you can pay monthly and I don't think it cost any more than paying a lump sum, or if it was, it wasn't very much.
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I cannot make any recommendations about LoL insurance but Airbus Girl has hit the nail on the head as far as insurance companies (including self insuring employers) introducing exclusions to avoid paying out for PHI, Income / Mortgage Protection, etc. is concerned.
My experience, as a spook (no longer) and a claimant (Former life came in very handy when they put the hounds on yours truly), over the past ten years or so, has been that they will go to any and all lengths to avoid paying.
And now, today, a friend of mine, following a serious RTA, has been told by her GP that she cannot work (NHS radiographer) and the NHS Trust doctors have said the same. However, after submitting her claim the insurers insisted that she saw their own doctor who, amazingly, pronounced her fit for work and now refuse to pay.
Believe me, you can argue until you are blue in the face. Short of near death they will fight paying, and the Financial Services Ombudsman is a complete and utter waste of space that is funded by the industry that it serves to regulate - another case of deja vu as per the Law Society / GMC.
Maybe an insurance company doctor should get a job at the Belgrano then everyone will pass as they obviously have a magic medical wand.
Sorry if I sound a tad bitter - I just happen to have a bee in my bonnet over the insurance industry.
2close
My experience, as a spook (no longer) and a claimant (Former life came in very handy when they put the hounds on yours truly), over the past ten years or so, has been that they will go to any and all lengths to avoid paying.
And now, today, a friend of mine, following a serious RTA, has been told by her GP that she cannot work (NHS radiographer) and the NHS Trust doctors have said the same. However, after submitting her claim the insurers insisted that she saw their own doctor who, amazingly, pronounced her fit for work and now refuse to pay.
Believe me, you can argue until you are blue in the face. Short of near death they will fight paying, and the Financial Services Ombudsman is a complete and utter waste of space that is funded by the industry that it serves to regulate - another case of deja vu as per the Law Society / GMC.
Maybe an insurance company doctor should get a job at the Belgrano then everyone will pass as they obviously have a magic medical wand.
Sorry if I sound a tad bitter - I just happen to have a bee in my bonnet over the insurance industry.
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I echo what's been said above.
Mate of mine can't work due to a traffic accident. LOL paid out ok.
He had another policy which is specifically linked to his job. It's undecided as to whether it's going to pay out saying he could do another job although he's not trained to do anything else and that isn't part of the policy.
This is kind of funny as the CAA say he is unfit for work and so do the LOL company.
Now he's faced with big legal bills to make them pay out if they decide to refuse to pay...
I've got £200k worth of cover through BALPA, costs about £60 a month. I'll reduce it as the mortgage goes down. Not a great fan of insurance policies but having seen how some people have to survive following loss of licence it's something I think is worth its weight in gold....If I lose my licence no one will be able to take the roof from over my head, except the future wife! (I can't insure against her
)
Mate of mine can't work due to a traffic accident. LOL paid out ok.
He had another policy which is specifically linked to his job. It's undecided as to whether it's going to pay out saying he could do another job although he's not trained to do anything else and that isn't part of the policy.
This is kind of funny as the CAA say he is unfit for work and so do the LOL company.
Now he's faced with big legal bills to make them pay out if they decide to refuse to pay...
I've got £200k worth of cover through BALPA, costs about £60 a month. I'll reduce it as the mortgage goes down. Not a great fan of insurance policies but having seen how some people have to survive following loss of licence it's something I think is worth its weight in gold....If I lose my licence no one will be able to take the roof from over my head, except the future wife! (I can't insure against her
)
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I'm with Swiss Life.
If -for whatever reason - you are not able to do your job anymore; they pay. There's lots of different ways to cover losing your medical; my policy foresees a lump sum (to get rid of that studyloan) plus a monthly payment 'till the end of the policy (normally age 60).
Problem is, the older you are when you start with them, the more you pay. I started early (age 23), so without building capital, I pay €230 monthly. If I would have started this policy today (28), it would have been around €400.
The catch with a lot of cheap insurances is that they'll never pay 100%, except in case of 100% disability. F.e. losing a eye would get you only 25% of the insured sum. With Swiss Life you'd get everything, simply because you can't continue your job.
Good luck!
If -for whatever reason - you are not able to do your job anymore; they pay. There's lots of different ways to cover losing your medical; my policy foresees a lump sum (to get rid of that studyloan) plus a monthly payment 'till the end of the policy (normally age 60).
Problem is, the older you are when you start with them, the more you pay. I started early (age 23), so without building capital, I pay €230 monthly. If I would have started this policy today (28), it would have been around €400.
The catch with a lot of cheap insurances is that they'll never pay 100%, except in case of 100% disability. F.e. losing a eye would get you only 25% of the insured sum. With Swiss Life you'd get everything, simply because you can't continue your job.
Good luck!
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Klink,
I admire your confidence in your chosen insurer and I hope you never have to test the water.
But, having had extensive dealings with the company you mention and on the very subject of your last sentence, all I will say is read the fine print extremely closely, get it double checked, and get them to commit to writing on any doubts you may have.
Saying that, I note you are in Central Europe and my experiences are limited to the UK element.
Best of Luck,
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I admire your confidence in your chosen insurer and I hope you never have to test the water.
But, having had extensive dealings with the company you mention and on the very subject of your last sentence, all I will say is read the fine print extremely closely, get it double checked, and get them to commit to writing on any doubts you may have.
Saying that, I note you are in Central Europe and my experiences are limited to the UK element.
Best of Luck,
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laser eye treatment
not wanting too take this too far off tangent - has anyone had any limitations imposed by LOL insurers for laser eye treatment (not had it done, but thinking about it).
Cheers..
Cheers..
An interesting issue has arisen lately while discussing this. The premium for your LOL might have to be treated as a 'perk'. Perks in the UK are taxed.
So your average £200,000 LOL cover might work out at around £1500/yr for the company taking the insurance out, but YOU might have to pay tax on that at the highest rate?????
Hence (I suspect) the above example of the BALPA rate of £60/month - That could just be you paying your premium tax. The company you work for have already paid your premium
If you dont pay tax on your premium....the tax gets taken out of the pay out........ouch!
So your average £200,000 LOL cover might work out at around £1500/yr for the company taking the insurance out, but YOU might have to pay tax on that at the highest rate?????
Hence (I suspect) the above example of the BALPA rate of £60/month - That could just be you paying your premium tax. The company you work for have already paid your premium
If you dont pay tax on your premium....the tax gets taken out of the pay out........ouch!
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If you lose your licence chances are you have a critical ilness, so take out a critical illness policy, this will pay out when you get the illness. Mine covers my mortgage, but I have also got a separate life cover for that, so if I do get anything serious i'll have loads of cash to flutter in my final few years and my mortgage will be taken care off when I die, so my wife will be doubly happy!
Amsterdam here I come!
Amsterdam here I come!
St Paul:
Diabetes
Heart arrhythma
V poor eyesight
Failing your hearing test
Any illness that requires drugs to combat it
All of the above wont kill you, you will go onto to live weel into your 70's / 80's with any of these.
Losing your licence does not require you to inherit a critical illness perse.
Diabetes
Heart arrhythma
V poor eyesight
Failing your hearing test
Any illness that requires drugs to combat it
All of the above wont kill you, you will go onto to live weel into your 70's / 80's with any of these.
Losing your licence does not require you to inherit a critical illness perse.
