Own-Occupation vs. Any-Occupation Disability Insurance
Not all Disability Insurance Policies define being “Disabled” the same. Own-Occupation Policies determine ability to perform your specific day to day job duties. Any-Occupation Policies determine ability to perform any occupation you may be qualified for at all.
Obviously, there is a significant difference between these two definitions of Disability. For some jobs, an Any-Occ policy is fine. But highly trained professionals need an Own-Occ Disability Policy. However, some Own-Occ policies have more comprehensive and “client friendly” provisions vs. others.
Own-Occupation Disability Insurance
The number one feature you need in a Disability Policy is “Own-Occ” or “Own-Occupation” provisions. Simply put, this means that when judging if you are disabled or not, the insurer considers if you can perform your specific job duties. This includes both physical and connotative functions of your job.
Obviously, this is at least the starting point that most anyone would want for their Disability Insurance. But that is not the case with all policies.
Any-Occupation Disability Insurance
Any-Occupation is used with most Group Disability Insurance. It can also be found on some of the less expensive individual policies on the market.
Not all “Own-Occ” Disability Policies are the same
An Own-Occupation Policy is a good starting point. But there are differences within the various Own-Occ Policies. The main difference is in how “specific” the policy is to what constitutes job duties and occupation. Take someone in the medical field for example… the occupation of “Doctor” or “Physician” is a very broad term. There are certain conditions that might restrict you from doing brain surgery, but would still allow you to practice medicine as a Family Doctor. The same goes for others who have highly technical expertise in their field.
What to look for in an “Own-Occupation Disability Policy
You need a policy that states it will cover your SPECIFIC job duties. Not just your general occupation. If you are a specialist in your field, then you need a policy stating it will cover the “specific job duties of your specific specialty”.
Do all professions need that level of coverage?
It depends. Some professions, especially certain blue-collar professions, might not qualify for an Own-Occupation Disability Policy. Others people might not need the most comprehensive level of coverage there is. Especially a policy with specialty provisions in it if the person is not a specialist. This can sometimes save some money vs. the most comprehensive option available. However, if you plan to obtain some type of specialty in the future, it would be wise to go ahead and lock-in a policy now that has Specialty Disability Provisions. You can find out more advantages of why you should lock-in a Disability Policy now, by clicking this link.
As you can see, not all Disability Insurance Policies are created the same. There are some very major differences between the many options on the market. Feel free to reach with any questions you may have, or for a customized Disability Insurance Quote.
Thanks for reading,