Loss of License (LOL) insurance is insurance that kicks in when flying personnel (usually pilots (airmen) and flight attendants) lose their license to perform their duties due to loss of airman medical fitness.
This license is in jeopardy for a wide variety of reasons (accident, illness), as there are high requirement profiles associated with it. This is also referred to as occupational disability insurance for pilots. The same applies to air traffic controllers.
The policyholders are either air carriers or the insured person himself. The agreed lump-sum benefit from the insurance is predominantly provided in the form of an annuity or also in the form of a one-off lump-sum payment.