ALPA Loss of License insurance
 

Does anyone have this and, if so, what are your experiences with it if it's needed to be used? I'm trying to figure out if it's a wise investment or a waste of money. Thanks in advance for your input!

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.

While it's called loss of license, as Rick pointed out above, it's more for losing your medical cert. Why would you want/need it? If you are young and healthy, probably less of a reason to have it. If you are prone to accidents, and would require extended time off work to heal, you may want it. If you are older, and more likely to fail a medical exam, you might want it.

Another thing to check out is your company's policy on when it goes into effect. Is it right away? Do you have to be unable to fly for an extended period of time? Can you do other work while you are not flying to supplement your income? Will the income you get from LOL insurance (pun intended) be enough for you and your family to live?

I know a pilot who had it, lost his medical, and was able to stay with his company (as a refueler) while maintaining his pilot salary (at the LOL rate of pay) for a year or slightly more. When LOL ran out, the company offered him the same job, but at normal wages for that position. He took it. But it kept him employed at a higher rate for a year or more. For him, I think it was worth it. Like all insurance, you are paying in the hopes you never need it, but when you need it, it comes in handy. The insurance company is hoping you never need it, too. Ever.

If you are a young pilot with a large amount of debt ie college/ratings, and you blow a medical, it may be worth it. Had a kid on the jump seat the other day with $250k in debt for school and ratings, and my first thought was (after what are his loan payments) what would he do if he couldn't fly anymore and had to re-educate himself in a new career? Problem is what are the premiums on top of school loans, rent, food, car, gas etc? Could you declare bankruptcy on all that debt? Guess it depends on what stage of the game you're in, and what your trying to protect. Obviously, read the fine print, premiums might be less for the younger pilot, but as you age the cost increases. One policy I looked at a former employer really wasn't worth it as the pay out amount goes down and premium goes up asome the pilot ages. Wasn't worth it for the older guy, and long term disability was a better deal. But that all depends on what insurance benefits your employer has and whether or not they consider the loss of a medical as being disabled. Knew a guy who lost his medical, and the insurance company was willing to pay for him to go back to college as it would be cheaper than paying for him until he was able to draw on Social Security. Good luck in your research.

I've never had the ALPA provided product, but have encouraged my MEC to promote it vs. the company available benefit.

Either way you go, I think it's worth it, at least the Long Term Option. The Short Term generally kicks in as soon as your sick time is used up, and goes for four months. The Long Term won't kick in until sick time is used up and you've been off work for four months. I've seen several guys keep their houses by having it, and several guys go get a job pronto (making much less than what they make flying) in an effort to keep their house.

I recommend having it, even if you're young. Unless of course you live in your parents basement anyway. :p

How is the ALPA plan different from Long Term Disability that a company offers?

Typically the LT disability is only for a certain percentage of your income (50%), loss of lic helps make up the difference.

Thanks! Good to know.

For those at UAL, the LTD plan will cover you with no real need to purchase outside coverage.

The LTD plan is cheaper, as the company pays 65% of the cost and the LTD plan has better coverage.

The ALPA LOL is really for those that don't have a good collectively bargained alternative.

Also, some of the regional plans will have offsets from outside coverage netting you nothing in return for years of premiums.

Worth spending a lot of time looking at all plans to understand what,when and how they pay, in addition to exclusions and offsets

^^This.

That was my perception. UAL's plan seemed a far better deal, and why I opted for it.

As I understand it, the plan pays about 60% of your pay (not sure if that is monthly guarantee, or what you can bid), BUT, it is tax-free....meaning you net take-home is about 80% of what you earn while working.

Just wanted to make sure I wasn't missing something.