Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Own Occupation Disability Insurance and other Disability Insurance topics.
Comparing quotes for disability insurance that offers “any occupation” or “own occupation” may, at first glance, be deceiving. If your focus is primarily directed to the cost of coverage, you will normally notice a significantly lower premium cost for "any occupation" language insurance, even if benefit levels, elimination (waiting) periods, and length of benefit periods are identical.
Should the only primary difference in coverage quotes be this language, in most cases, "any occupation" coverage will be noticeably less expensive. But this is not a decision that lends itself to haste or impulse. While the cost of your prospective coverage is very important, so is the type of coverage you want, need, and deserve.
Many experts agree that the most important asset of a medical or other professional is his/her current and future earnings ability. Logic would then dictate that this asset be safeguarded and protected as completely as possible. These issues would appear to require trained professionals to seriously consider adding an own occupation rider to their disability insurance coverage. Why?
Coverage with “any occupation” language means you are considered to be disabled until you can perform the duties of any gainful occupation, whether or not it has any connection to your professional specialty. "Own occupation" disability insurance language normally considers you to be disabled – and eligible for continued monthly income benefits – until you are able to resume the duties of your specific specialty.
You can see a) why the definition “own occupation” carries a higher premium cost (as benefits might be payable for a much longer period), and b) why this feature may prove to be intensely important in the future should you suffer an injury or illness that prevents you from practicing your specialty.
The above-listed tip is for informational use only. Refer to your insurance policy contract for specific information regarding your coverage and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.