Disability Insurance Claim Articles

Own vs. Any Occupation Disability Insurance

By Jeffrey L. Greyber, Esq.

What's the difference between own vs. any occupation disability insurance policies? In this article you will see my recommendations on which type of disability insurance policy you should be looking into purchasing. First off, a reminder, that each and every disability insurance policy has in place their very own definition of disabled. This may differ from your definition, as well as your physician’s, but the insurance company’s definition is considered ultimate.

One point potential policyholders need to absolutely look out for when shopping for a disability insurance policy are the terms "own occupation” and “any occupation". In an own-occupation situation, the policy typically requires that the policyholder need be unable to perform in their current occupation. In opting for an own occupation disability health insurance policy, you are ensuring that if by chance you are no longer able to perform in your current occupation, your disability benefits would cover your salary.

Any-occupation more so references a policyholder’s education, experience and an evaluation of the labor market to summarize a payment payout. The bottom line: it is best to have the most coverage from the very beginning. A number of insurance companies will make that distinction, but if possible, it is recommended that you purchase an own occupation disability insurance policy.

Another thing I advise potential policyholders to look out for when purchasing a disability insurance policy, is the lifetime vs. age of 65 distinctions. The most common type of disability insurance policies cease benefits to the policyholder by the age of 65. There are disability insurance policies out there that will continue to pay the salary you are missing out on due to your disability, through your lifetime. Lifetime expectancy is continuously expanding, and we the policyholders, need to adjust accordingly. It is critical that policyholders are aware of all of their coverage and options.

Those are two of the biggest things to be assessed when purchasing a disability insurance policy, but there are many more possibilities that could be discussed when searching for appropriate coverage.

Disability Insurance Claim Articles