Originally Posted by
RJSAviator76
I'm leaning towards LTD-B although I haven't decided just yet. With LTD-B and any sort of sick leave bank saved, you'll be just about made whole if you go out on long-term medical. What's wrong with this picture? Is it worth 1.65 TFP per 100TFP earned to have that peace of mind?
Let me put some cheapskate pilot math out there. How many LCO's in a year would this be? Or how about overflys? DL's? Is that worth potentially being made whole should the unthinkable happen? A single big reroute could potentially pay for the whole year of having this coverage. To me, that just might be worth it.
You really only need to get to 65% of MBE to be made whole if you do nontaxable. That’s also assuming you spend every dollar of that 65% on bills.
Max OOP on the RP is $2500/yr. You won’t go broke from medical bills on LOL depending on what medical plan you’re on. Nontaxable pays NEC as cash vs 401k so you can invest it how you see fit or use it for bills. If the medical problem is bad enough, you’ve got SSID with no offsets. If you have a sick bank, you can cash out some when you need it, and you have vacation pay as well (get NEC on that too).
Sure max of $650/mo doesn’t seem like much when you put it in tfp, but people need to do the math and figure out what they realistically need to be comfortable if their medical is yanked.
You’re looking at $200k a year tax free if you are a 12 yr CA crediting 100/mo (add $65k for NEC and doesn’t count sick time top-off or VA pay…could get you close to $300k)
Personally, I can live pretty damn comfy on nearly $300k a year. Is the $8k/yr in premiums worth another $2500-4500/mo? If your disability isn’t bad (still have the ability to work…just not as a pilot), you can find a side hustle and there’s no offsets.
We don’t pay COBRA anymore, still have travel benefits if you need to fly for treatments. I don’t see where I’d need LTD…but everyone’s finances, etc are different.