Over the past many years, being a pilot has consistently figured out the top ten dream jobs for youngsters.
This profession comes with the perception of glamour, the attraction of extensive traveling, and the thrill of flying across the skies. But the job also entails a huge amount of responsibility and hard work and requires adherence to stringent rules.
To become a commercial pilot, one must obtain a pilot license. This license does not expire but there are regulations to keep it current and there are circumstances in which the license can be suspended or canceled.
This leads to loss of work and income for the pilot and hence, for a pilot, loss of license insurance becomes an essential product offered by insurance companies.
What is Loss of License Insurance?
A pilot license is a permit issued by the authority for operating an aircraft. It is issued once the candidate meets the requirements of knowledge as well as flying experience. There are multiple steps involved in obtaining a commercial license.
The candidate has to pass the medical fitness test, undergo ground training, and clock in the required number of flying hours.
Even after obtaining a flying license, a pilot has to undergo regular medical tests to keep the license current.
The aviation authorities stipulate very strict medical criteria for pilots and failure to meet these standards due to a medical condition or accident can lead to suspension or termination of the license.
This can result in a situation of temporary or permanent loss of employment and income for the pilot. Loss of license insurance covers suspension or termination of license due to disease, illness, or accident.
This provides immediate financial assistance to the pilot and helps them tide over the loss of income till the license is renewed or they are able to find an alternate source of income. Hence, for a pilot, loss of license insurance is a crucial product.
How does Loss of License Insurance Work?
This product – loss of license insurance – has been designed as insurance against loss of income for a pilot due to illness, disease, or accident. The loss of income could be temporary till the suspension is revoked or permanent in case the license is not renewed.
In either case, the insurance payout helps the pilot financially.
The premium of such a policy is calculated based on the age of the pilot, medical history, and other factors. There are a few standard exclusions and conditions. Insurance brokers can assist with this information as well as with booking the policy.
In many cases, the employer takes group insurance for its pilots and crew. Else, there is an option of taking an individual policy too. There are also options for fixed amount payments versus monthly payments.
The product offers different options making it flexible and useful.
Why Should a Pilot Buy Loss of License Insurance?
The Loss of License Insurance is a must-have product for all commercial pilots. It provides excellent benefits at affordable rates. If your income is from a career in flying aircraft, then taking such a policy would be an essential part of good financial planning.
If a pilot is laid low due to an illness or an accident, the last thing they would want to worry about is paying the rent or repaying a loan.
Many people take a loan for their pilot training and the payout of such an insurance policy can help repay such loans and ease the financial strain on the person.
In case the suspension of license and employment is temporary – for example, till the medical condition is treated fully – one can opt for monthly payments from the insurance which will tide the person over till they are reinstated.
Insurance brokers can help with options that are optimal for the insured person.
If for some unfortunate reason, the license is terminated and the pilot needs to look at alternative careers, they can opt for a lump sum payment. This will not only take care of immediate financial needs but can also help towards training or education for a new career.
So, if you are a pilot and depend on flying for your income, then it’s imperative as part of long-term planning to buy loss of license insurance. This will go a long way towards securing your finances in the unfortunate event of an illness or accident.
As the famous quote goes – “The time to repair the roof is when the sun is shining”.
Get the loss of license insurance and secure your “roof”.