This is one of the most debated topics among pilots. Understanding the difference is crucial.
Pays a lump sum if you permanently lose your medical. Typical cover: £200,000–500,000. Cost: ~£100–200/mo depending on age, cover level, and provider.
Pays a monthly income (typically 50-70% of salary) if you can't work due to illness or injury — even temporarily. Covers both permanent and temporary loss of medical.
| Feature | Loss of Licence (LoL) | Income Protection (IP) |
|---|---|---|
| Payout type | Lump sum | Monthly income |
| Temporary loss of medical | Usually not covered | Covered |
| Permanent loss | Covered | Covered |
| Typical cost | £100–200/mo | £80–180/mo |
| Tax on payout | Tax-free lump sum | Taxable as income |
| Deferred period | N/A | Usually 13-26 weeks |
APPN — Aviation Personnel Protection Network. Specialist pilot LoL insurance. Well-known in the industry.
Drewberry — Independent broker offering both LoL and income protection. Can compare multiple providers and find the best deal for your situation.
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