Hey guys,
I just applied for my Meritize loan yesterday after a very long thinking process and I can’t stop thinking about the worst case scenario if, for whatever reason, someone is no longer able to fly cuz of an illness or a pandemic and can’t pay back that enormous loan. Is there some type of insurance in the loan for that or even third party?
Thanks,
Marwan
Marwan,
That’s a question for Kirk in finance. There are of course all kinds of insurance products out there available but that’s a conversation with your insurance agent.
Adam
Hey Marwan!
Those details will either be found in the fine print of your loan’s terms and conditions or the loan officer would be able to tell you what to do in the event that you cannot continue flying.
I imagine that you would still be responsible for repaying the loan but maybe you would have the option to defer payments?
Tory
Marwan,
I do know of a few third party insurance programs you can pay into as an employee of an airline that will protect your income if for any reason you lose your medical. The payments are a percentage of how much of your income you’d like to protect. I’d be cautious and read the fine print of them but just wanted to let you know those were out there.
As for loan repayment protections, Kirk in finance will be your best resource.
-Hannah
Thank you guys, I did email Kirk about it and he said that typically loan companies will work with you on some kind of economic forbearance, but that would be a temporary circumstance.
They do have a Permanent Disability clause, where if you are injured or cannot work to earn an income permanently, then the loan amount is forgiven.
I will be looking into this in detail with Meritize once everything is finalized.