Depends on whether you could get a non-flying job making enough money on short notice. For a regional FO who changed careers from computer programming, it's a waste.
For a widebody CA who's been a stick-monkey his entire adult life, probably a good idea.
Also pretty sure it's actually "loss of medical" insurance. If you do something dumb, get violated and your pilot certificates revoked, I don't think anyone's going to pay you to sit home after that. But read the fine print anyway.