February 20, 2009, Newsletter Issue #48: Know What “Own Occupation” Means

Tip of the Week

You’ll not be surprised to learn that disability insurance has an extensive glossary of terms you may not immediately comprehend. Most insurance policies are often based on a specific universe of terms that relate to the coverage offered. None are more important than "own occupation" coverage.

This provision in a disability insurance income policy specifies the conditions under which a disability is present and the own occupation period over which benefits will be paid. Unlike many basic and government disability insurance policies, coverage that includes an own occupation definition will normally qualify you to continue to receive monthly income benefits until you are able to perform the specific duties of your specialty.

This means that, unlike basic disability coverage, which often specifies that benefits end when you are able to perform the duties of any gainful occupation, having an own occupation rider or language normally keeps you eligible for benefits until you can return to practicing your specialty. Obviously, this affords you a much higher level of protection. As a professional, this is a level of protection that you should have, if at all possible.

As you can see, this term and definition of covered disability is a most important feature of income insurance protection. Be sure to examine the specific language of an own occupation provision or rider offered by your insurer. Even commonly accepted definitions of own occupation insurance may have a variety of modifiers and or enhancers in different insurance contracts. Use excellent websites, like ProtectYourIncome.com, to get more information to assist you in making the best disability insurance decisions for you.

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.

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