Loss of Medical: Disability Insurance for Pilots

Unlike most professions, a pilot's career ends when they lose Class 1 medical certification — even if the underlying condition wouldn't prevent other employment. A cardiac event, a cancer diagnosis, a vision change, a mental health flag: any of these can end a $300K+ career in a day.

The three definitions of "disabled" — and why they matter

Definition	Pays if you…	Common in
True own-occupation (pilot-specific)	Can't perform your duties as a pilot, even if capable of other work	Individual policies from specialty carriers (AFIT, Starr, Harvey Watt, etc.)
Loss of license (real)	Specifically pays on revocation or denial of Class 1 medical	Specialty pilot policies and some union plans
Modified own-occupation	Can't perform your occupation AND not working elsewhere	Many group LTD policies
Any-occupation	Can't perform any work reasonably suited to you	Standard group LTD after 2 years

A pilot with a cardiac disqualification and an "any occupation" policy gets told they're fit for desk work and receives nothing. Own-occupation or specific loss-of-license coverage pays the intended benefit.

Union-provided coverage — read the fine print

Many pilot unions offer supplemental disability and loss-of-license insurance. Common features:

Benefit amount: typically 60-80% of base salary, capped at $10-15K/month
"Loss of license" triggers often require formal FAA revocation — self-grounding due to medication may not qualify
Benefits taxable vs tax-free depends on whether premiums were paid pre-tax
Benefits typically end at age 65 (matches mandatory retirement)

Individual specialty policies

Several insurers specialize in pilot DI:

AFIT (Aviators Financial Services Insurance Trust) — union-adjacent, competitive rates
Starr Aviation — Lloyd's-backed, flexible benefit structures
Harvey Watt — long-established pilot-specific products
Berkley Aviation — commercial focus

Typical cost example: $10K/month benefit to age 65, own-occupation with loss-of-license rider, for a 40-year-old mainline captain in good health: $3,500-$5,500/yr depending on carrier and underwriting class. Cheaper if purchased younger; significantly more if purchased with prior medical history.

Key riders to consider

Future increase option. Raises benefit as income grows without new underwriting.
Cost-of-living adjustment (COLA). Benefits grow with inflation during long claims.
Residual / partial benefit. Pays partial benefit if you're flying reduced hours due to medical limitation.
Catastrophic benefit. Additional benefit if disability is severe (paraplegia, cognitive impairment).

When to buy and how much

Buy early (young pilots face lower rates and fewer exclusions). Buy enough to replace 60-70% of income to age 65. If you're a $350K mainline captain with meaningful savings, $12K/month benefit makes sense. If you're a younger FO at $150K without savings, similar $10K/month ($120K/yr) is the right range.

Review your loss-of-license coverage

Pilot-specialist advisor will read your actual policy and tell you honestly what it covers. Free match.