LOL Insurance rip off
Thread Starter
Joined: Jan 2001
Posts: 125
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From: Dirty Sands
LOL Insurance rip off
Gentlemen, your input in this important matter would be greatly appreciated.
The situation is this: Although my outfit provides basic LOL insurance for all pilots at a small cost (gross 450 euro, i.e. about 300k sterling for the loss of your ticket) I had decided to contract some extra insurance privately.
I found a broker that would provide an extra euro 335k insurance compatible with that of my company. That way I would receive a more or less reasonable sum to keep me buoyant above poverty levels for a while should the worse happen. Unfortunately the capital received this way is taxable in Spain so you'd only receive roughly half the aforementioned sums for the privilege of a generous contribution to your fellow citizens.
A few days ago I got a letter from my broker stating that due to difficult market conditions they're reducing the insured capital by a 9% all the while increasing their premiums a modicum of 55%.
That is, I now have to shell out 227 euros (about 150 pounds) monthly for a taxable 305k euro. I'm in the early 40s and never ever had a medical problem.
Now, do any of you ladies and gentlemen have a private LOL policy? And if so at what cost and what's the tune of the money you'd get and is this taxable in your country? The names of any insurers or brokers would be most welcome.
Thanks and happy ldgs.
The situation is this: Although my outfit provides basic LOL insurance for all pilots at a small cost (gross 450 euro, i.e. about 300k sterling for the loss of your ticket) I had decided to contract some extra insurance privately.
I found a broker that would provide an extra euro 335k insurance compatible with that of my company. That way I would receive a more or less reasonable sum to keep me buoyant above poverty levels for a while should the worse happen. Unfortunately the capital received this way is taxable in Spain so you'd only receive roughly half the aforementioned sums for the privilege of a generous contribution to your fellow citizens.
A few days ago I got a letter from my broker stating that due to difficult market conditions they're reducing the insured capital by a 9% all the while increasing their premiums a modicum of 55%.
That is, I now have to shell out 227 euros (about 150 pounds) monthly for a taxable 305k euro. I'm in the early 40s and never ever had a medical problem.
Now, do any of you ladies and gentlemen have a private LOL policy? And if so at what cost and what's the tune of the money you'd get and is this taxable in your country? The names of any insurers or brokers would be most welcome.
Thanks and happy ldgs.
Last edited by TE RANGI; 2nd September 2003 at 16:07.
Joined: May 2002
Posts: 2,242
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From: Australia
The best terms and conditions for Loss of Licence are usually the ones obtained by groups such as pilots associations or companies on behalf of their staff. It probably doesn't pay to go the individual route as the underwriter can only look at your premium versus a possible 100% claim, within a group policy it can be averaged out over tens, hundreds, or perhaps thousands.
Suggest you look at what your pilots association is offering? As you probably hold a JAR licence what is to stop you becoming an associate member of, say, BALPA, and seeing what they have to offer? Or any of the European major organisations.
When I last worked in the UK I managed to arrange, via the insurance manager of my employer, to increase my policy limit and pay the extra myself, enjoying 'company rates', when I left that company the insurance company agreed to continue my policy on a personal basis but gave me the benefit of the corporate terms and conditions.
Best of Luck.
Suggest you look at what your pilots association is offering? As you probably hold a JAR licence what is to stop you becoming an associate member of, say, BALPA, and seeing what they have to offer? Or any of the European major organisations.
When I last worked in the UK I managed to arrange, via the insurance manager of my employer, to increase my policy limit and pay the extra myself, enjoying 'company rates', when I left that company the insurance company agreed to continue my policy on a personal basis but gave me the benefit of the corporate terms and conditions.
Best of Luck.
Thread Starter
Joined: Jan 2001
Posts: 125
Likes: 0
From: Dirty Sands
BlueEagle,
Thank you very much for your sound advice. I will look that way.
In fact the broker I was refering to used to cater for the Spanish pilot association and still retains a number of pilots who purchase a private insurance in what I believe is a colective policy. It's apparently the number of busted medicals what has made the underwriter sky rocket its premiums.
But the bottom line is that I still find the insured capitals ridiculously low compared to the salaries you'd draw in your remaining professional life. Thus, a loss of licence would be to many of us a catastrophic event, both financially and psicologically.
That's why I would like to gather info on the conditions in different countries/lines. May be this question should be addressed on a wider scale.
Rgrds.
Thank you very much for your sound advice. I will look that way.
In fact the broker I was refering to used to cater for the Spanish pilot association and still retains a number of pilots who purchase a private insurance in what I believe is a colective policy. It's apparently the number of busted medicals what has made the underwriter sky rocket its premiums.
But the bottom line is that I still find the insured capitals ridiculously low compared to the salaries you'd draw in your remaining professional life. Thus, a loss of licence would be to many of us a catastrophic event, both financially and psicologically.
That's why I would like to gather info on the conditions in different countries/lines. May be this question should be addressed on a wider scale.
Rgrds.
Joined: Nov 2000
Posts: 893
Likes: 0
From: South of Watford
T R
I have just enquired about LoL insurance from BALPA. The premium was about £720 pa for £100,000 cover. As far as I know this is not taxable in the UK (at least until Tony hears of another stealth tax opportunity). I am 41 years old with no medical problems apart from the gout, only 1 leg and a slight twitch when I get excited.
Must go I am starting to twitch as Maggie Thatcher has just appeared on the telly.
I have just enquired about LoL insurance from BALPA. The premium was about £720 pa for £100,000 cover. As far as I know this is not taxable in the UK (at least until Tony hears of another stealth tax opportunity). I am 41 years old with no medical problems apart from the gout, only 1 leg and a slight twitch when I get excited.
Must go I am starting to twitch as Maggie Thatcher has just appeared on the telly.
Joined: Jul 2003
Posts: 229
Likes: 0
From: woop woop
Well if you think you are hard done by , my policy went from $3200 oz dollars a year for a loss of income policy paying $12000 a month to $17000 a year!!
Needless to say I told em to stick it where the sun do'nt shine.
I will just rely on my lol now.
Needless to say I told em to stick it where the sun do'nt shine.
I will just rely on my lol now.
