Pilot disability insurance, also known as loss of license insurance, provides income protection for professional pilots. In the case that a pilot is disabled and unable to work, loss of license insurance benefits provide income during the period in which the pilot is unable to work.
Pilots must meet the medical certificate requirements established by the Federal Aviation Administration in order to maintain their license. If they are unable to meet the minimum health requirements or have become disabled, their medical certificate may be suspended. During this suspension period, pilots are unable to work and may be left without a source of income. Loss of license insurance protects pilots in such situations by providing monthly benefit amounts so that the pilot can maintain his/her living conditions.
Loss of license insurance covers most professional pilots including commercial, corporate, cargo, agricultural, and stunt pilots, among others. Pilot disability insurance is available to both individuals and groups. It covers temporary and permanent loss of pilot license, providing monthly or lump sum benefits depending on the situation.
Even if a pilot does not consider him/herself disabled, the ability to work depends on the employers licensing authority. A pilot may have his/her medical certificate suspended without much notice, in which case it is important to have pilot disability insurance in order to compensate for potential income loss.