Professional pilots and disability

AggieMike88

AggieMike88

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The original "I don't know it all" of aviation.
I had a 6PC and/or Kevin T. type of question pop in my head today. And is directed to our membership who fly for a living.

As we know (and love) there is the current requirement for airmen to hold a second or first class medical for a professional pilot (CP, CFI, or ATP) to exercise his privileges of earning an income from flying activities.

Say an airman has become reliant on his flying income as his primary source of revenue, such as being a Part 121 or Part 135 pilot.

Say this airman suffers a medical incident that is serious enough that he becomes medical disqualified for a first or second class and the chance of ever getting it back are very very low.

So now this airman is now unable to fly and earn revenue.

Are any of our professional pilots protecting themselves against such a risk? While low probability, sure, it comes with a major impact.

Would typical disability coverage (short and long term) work for a professional pilot? If you're part of a union, are there any union benefits for something like this?

With the exception of having gainful training and experience in a non flying income earning area, what are our pro pilots doing to protect against financial hardship/ruin should something kill their career medically?
 
I think they do the same thing as other professionals, buy disabilty insurance, short term and/or long term to protect them on the event they cannot work. I'm not sure how long it would pay if they are capable of doing "other types of work" I don't imagine it would continue to pay if they are able to work, just not as a pilot.:dunno:
 
YES!!!!!! YES!!!!

I have a disability policy through the company ... company pays for it and it is not much and taxable.

I have a disability policy through my union...a lot.
I also purchased an add on disability policy to bring me back up to full pay until 65. I pay out of pocket for these and the income is NOT taxable.

One of the very very unique deals I have through my union policy is that if I cannot maintain a physical for my seat I am NOT required to fly as a First Officer nor am I required to get any type of job but if I start a side business then that income would be deducted from the benefits. This is a relatively rare deal and makes life much easier but is not cheap. The policy's that I pay for through my union keep me at 66 and 2/3 % of my normal pay and the add on brings it up to full normal pay after taxes.

In this business, as easy as it is to lose your medical, one would be foolish to not have disability insurance.
 
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So what triggers these policies? Is a disease which keeps you from holding a medical, but doesn't otherwise reduce your ability to be a productive person, does that count as a disability?:dunno:
 
There used to be one that specifically covered that gap. I think AOPA advertised it but don't know who the underwriter was in the early 90s. Haven't seen anyone pushing the policies since the average pilot age started creeping upward. Bound to be a money loser.
 
First off, you forgot about a huge group of pilots who make their living in part 91 operations, corporate flying.
I'm sure some of those guys have disability insurance through their companies health insurance plan, and some others do not.
As for me, I have my own personal insurance, that only pays for medical bills, I get nothing through the people I fly for.
Another thing, there are no unions in part 91 flying either, except maybe NetJets.
 
Henning said:
So what triggers these policies? Is a disease which keeps you from holding a medical, but doesn't otherwise reduce your ability to be a productive person, does that count as a disability?:dunno:
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Pilot disability insurance pays if you cannot hold a medical certificate.
 
RotorAndWing said:
Pilot disability insurance pays if you cannot hold a medical certificate.
Click to expand...

And to clarify, there are usually sick pay provisions that are the first line of defense for maintaining income. So there are various gates to get through as the length you are grounded gets longer. Almost an administrative game, unfortunately, to make sure you get the money you are owed in as timely a manner as you can.

So it might play out thusly:

I feel sick to my stomach, need to ground myself and call in sick for my next scheduled sequence that starts tomorrow (sick pay). One week later, I still feel sick, time to see a doctor. MRI of my gut finds a tumor, biopsy reveals cancer, treatment option selected that will take six months.

Since I have many years with this employer, I have enough sick pay available to cover four months. The company provided long term disability will kick in after that, but the paperwork for it must be filed two months prior to first benefit. Union provided short term disability has a six week wait from initial onset of the condition. My personally paid for gap coverage kicks in 90 days upon exhaustion of sick time, and requires that I at least file for SSDI. Better set up a calendar to track all those deadlines and submissions.

Complications arise, and treatment drags out for a year. At this point I am getting 90% of my pre-cancer income, some taxable, some not, but no contribution to my pension. Two years later, I finally get a Special Issuance and return to work, which is good. But I have no sick time, so the first stuffy nose of the season that grounds me means I am not paid for that trip.

In the meantime, the contract with the company has changed, and the cost neutral negotiations were such that pay rates were increased, but long term disability does not kick in until six months after initial onset of the condition, or exhaustion of sick leave, whichever is later. Additionally, the Union disability policy can only be used once every five years.

Since I have no sick time, I go to Harvey Watt to spend my own money for a policy that covers me for that six month gap. But I am denied, because I just had cancer. So now, should I break a leg, I will be without income for quite a stretch until I earn enough sick time to cover that new six month wait time. Hmmm, maybe this year's stuffy nose is not really all that stuffy . . .
 
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What happens when you can't get the SI and you a permanently without a medical? When does the insurance run out, or is there a policy limit they pay at that point?
 
Catmandu
That is just about identical to mine. We do another thing called "Mutual Aid" that each pilot pays into if they want and out of that pool of monies any gaps of all the different policies are covered. At the end of the year we get a return of excess monies paid in minus an escrow amount. I get paid 13 months a year (28 day month) and the last few years we have gotten about 43% back. Very cheap insurance.

This might seem like a lot of "extras" but unlike most careers we cannot move to another company and carry over our time and benefits. I am on my 5th airline and had to start over with everything every time.

To another poster....NETJETS. Is not part 91.

Hennings, all of this stops at 65. The new retirement age.
 
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Henning said:
What happens when you can't get the SI and you a permanently without a medical? When does the insurance run out, or is there a policy limit they pay at that point?
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If it's like other long term disability policies I've seen, they typically cover/pay until the earliest age that you would normally qualify for Social Security benefits. Basically, until you hit retirement age.

I think there are extra riders for extra cost that can give you a cost of living adjustment along the way.
 
AggieMike88 said:
Would typical disability coverage (short and long term) work for a professional pilot?
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I'm not sure what is "typical". I'm sure it depends on how the actual policy is written. The one which is provided to us (at least the one provided last year) was the same as for all the other non-pilot employees. Short term covers you if you can't return to your previous specific job description. In the case of pilots you need a medical to do your job. When it rolls over to long term the wording is more like "can't work in your industry". I took that to mean that if you could work at all in some other capacity in aviation they wouldn't pay you. Also keep in mind that many of these policies don't pay even close to what your normal salary would have been.

I have heard of specific loss of medical insurance for pilots but I never looked into it.
 
Additionally we have a rapid accrual of sick time if we come back from an illness that drains our sick bank. When I last checked I think I have almost 600 hours in there and currently I can't take it with me. Guess I'm gonna have start getting sick more !
 
Art VanDelay said:
Additionally we have a rapid accrual of sick time if we come back from an illness that drains our sick bank. When I last checked I think I have almost 600 hours in there and currently I can't take it with me. Guess I'm gonna have start getting sick more !
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I have heard that at American, the latest 'punish the sick, because we know they must be taking mental health days' change put forward is that you only get rapid re-accrual if you start the event with greater than 50% of your career-to-date earned sick time in the bank. So if you have been sick more than most, or have had a prior relatively long term disqualifying event during your career with the company, you get hosed.

Also, their long term disability goes to review after something like two years of benefits. A supposedly neutral third party will decide at that point if the disqualifying condition is such that the pilot is unable to work in any capacity (like, flipping burgers) to determine if benefits should continue. Nutty. Not sure how I feel about that one.
 
catmandu said:
Also, their long term disability goes to review after something like two years of benefits.
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I would think that they would be careful about paying out loss of medical insurance since a number of the disqualifying conditions are pretty subjective. Seems like fraud would be a big problem. Get paid your salary until age 65 without working? Yeah I blacked out last night...
 
Everskyward said:
I would think that they would be careful about paying out loss of medical insurance since a number of the disqualifying conditions are pretty subjective. Seems like fraud would be a big problem. Get paid your salary until age 65 without working? Yeah I blacked out last night...
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I can't imagine the typical pilot could afford, or be comped, with a policy of that level. The premium to assure $150k a year to 65 against the requirements of a 1st Class medical, that premium I think would be steep. Most of them are set up to take you through a couple year transition to either recover or remodel your life to your new reality be that SSI disability. Typically this is a $200,000 gamble against your medical. The other way is closer to a $3MM gamble during the younger years with lower odds. I would think that an expensive bet.
 
Henning said:
I can't imagine the typical pilot could afford, or be comped, with a policy of that level. The premium to assure $150k a year to 65 against the requirements of a 1st Class medical, that premium I think would be steep. Most of them are set up to take you through a couple year transition to either recover or remodel your life to your new reality be that SSI disability. Typically this is a $200,000 gamble against your medical. The other way is closer to a $3MM gamble during the younger years with lower odds. I would think that an expensive bet.
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As I mentioned earlier, I know these policies exist, in fact people have asked me if I had one, but I don't know how they work or what they cost. It seems from the links posted above that you can buy a policy as an individual although I imagine most people who have them get them through their employer or union.
 
Art VanDelay said:
Additionally we have a rapid accrual of sick time if we come back from an illness that drains our sick bank. When I last checked I think I have almost 600 hours in there and currently I can't take it with me. Guess I'm gonna have start getting sick more !
Click to expand...

I guess if you used all of it up and were still unable to work, you do what? Call in dead?


Thanks all who are providing informative answers. Interesting info there.
 
Henning said:
I can't imagine the typical pilot could afford, or be comped, with a policy of that level. The premium to assure $150k a year to 65 against the requirements of a 1st Class medical, that premium I think would be steep. Most of them are set up to take you through a couple year transition to either recover or remodel your life to your new reality be that SSI disability. Typically this is a $200,000 gamble against your medical. The other way is closer to a $3MM gamble during the younger years with lower odds. I would think that an expensive bet.
Click to expand...


The policies do exist. Keep in mind the Actuaries who'd figure out the odds also know most pilots would and do take care of themselves to not lose their job they love. It shows in the real world numbers of folks who've lost a 1st Class who needed one.

And many might qualify for a 2nd Class. And I bet the policy doesn't say you have to be a 121 Captain... I bet if you can get ANY commercial flying job they don't pay anymore... But that'd be fine print you'd need to read in an individual policy to find out.
 
Call in Dead! It would still be listed a crew delay!

AggieMike88 said:
I guess if you used all of it up and were still unable to work, you do what? Call in dead?


Thanks all who are providing informative answers. Interesting info there.
Click to expand...
 
Something to keep in mind is that the companies that provide pilot disability insurance often have doctors in-house or on retainer to work with the FAA to get your medical back. Often the use of these services are covered by the insurance company and its required that you use the services. It's in the insurance company's best interest for you to get your medical back, if you can.
 
jonnyjetprop said:
Something to keep in mind is that the companies that provide pilot disability insurance often have doctors in-house or on retainer to work with the FAA to get your medical back. Often the use of these services are covered by the insurance company and its required that you use the services. It's in the insurance company's best interest for you to get your medical back, if you can.
Click to expand...

You bet, and if they charge $275 a month for a doctor, I'd be interested to see what they charge for a $200,000 a year ATP.
 
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