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All About Own Occupation Disability Insurance

All About Own Occupation Disability Insurance

There are several forms of disability insurance available that provide varying levels of coverage to the insured.  One of the common forms is what is known as own occupation disability insurance.  There are also any occupation and modified own occuapation policies.  True own occupation disability insurance is considered to be the most favorable to the person who is insured, because they will still receive some benefits even if they are able to find another way to make some money.

By definition, own occupation disability insurance is a benefit that is provided to the insured when they are rendered incapable of doing the duties involved in their current occupation.  Because so many people have put many years of education and learning into the occupation they currently perform, it is unlikely that they would be able to make the same amount of money at another occupation.  Own occupation disabiltiy insurance allows the insured to obtain a different form of employment and still receive benefits to make up for that common disparity in income.

When you have an own occupation disability insurance policy you are considered totally disabled when you are incapable of doing the job for which you are trained and at which you have been employed when the disability occurs.  This differs from any occupation insurance which requires that you are disabled in such a way that you can not work at any sort of job.  In some cases any occupation will have the caveat that you are unable to perform any job for which you are educated or trained.  Modified own occupation disablity insurance is similar to true own occupation except that it usually requires that you are not working, and not able to work at the job you held prior to the disability.

True own occupation disability insurance policies often cost more than the other type because they are more likely to cost the insurance company a lot more money in the case of a disability.  An injury that does not prevent the insured from having an occupation but does prevent them from continuing in their current occupation is eligible for benefits, while in any other form of insurance this might not be so.  Insurance companies in the case of own occupation disability insurance will continue to pay out benefits even though their insured is still gainfully employed.  

A good example of how own occupation disability insurance works is a doctor who performs delicate surgeries.  If this doctor were to suffer injuries to the hands that rendered him or her incapable of performing these surgeries, he or she would no longer be able to perform their own occupation.  They could, however still practice medicine in other ways and continue a viable career, but would likely make considerably less money.  With an own occupation disability policy in place, this doctor would receive benefits to make up for the lost wages due to the disability.  

Talk to your insurance agent to determine whether own occupation disability insurance is the best choice for you.

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