CandleFocus Glossary Editor
The concept of an own-occupation insurance policy is not a new one. It has been available for many years, but in recent years has gained more attention due to the increasing number of physicians considering retirement. With recent changes in healthcare legislation, physicians may find themselves unable to continue their regular practice due to the medical restrictions and changes in the healthcare system. An own-occupation policy offers physicians the peace of mind that should anything happen to them, they will still receive benefits if they cannot practice their occupation.
An own-occupation policy is different from a regular disability policy in that it offers benefits that are based on an individual's ability to work in their specialty or profession. This means, regardless of where they choose to work, they will receive benefits as long as they cannot work in their profession. For example, if a physician was injured and unable to return to the practice of medicine, they would still receive disability benefits, even if they chose to take a job in a different field. Additionally, since the policy is based on an individual's own occupation, it often offers higher benefit levels than traditional disability policies.
Own-occupation policies usually require that a person be totally disabled in order to qualify for the policy, although certain policies may allow for partial disability benefits. Benefits can be paid for the insured's lifetime, or there may be limitations and expiration periods specified in the policy. In most cases, the disability must be due to an illness, accident, or sickness that would keep an individual from performing the duties of their specific occupation. Policies also typically include provisions for increasing benefits due to inflation.
Own-occupation policies are well worth considering for any professional who depends on their earning capacity, particularly those who are heading towards retirement. The peace of mind provided by having an own-occupation policy can be invaluable to those who generate their income from one specific profession. Taking the time to shop around for the right policy and analyze the provisions and benefits offered can greatly reduce future financial worries and ensure that a policyholder’s financial security is protected in the event of an illness or injury.
An own-occupation policy is different from a regular disability policy in that it offers benefits that are based on an individual's ability to work in their specialty or profession. This means, regardless of where they choose to work, they will receive benefits as long as they cannot work in their profession. For example, if a physician was injured and unable to return to the practice of medicine, they would still receive disability benefits, even if they chose to take a job in a different field. Additionally, since the policy is based on an individual's own occupation, it often offers higher benefit levels than traditional disability policies.
Own-occupation policies usually require that a person be totally disabled in order to qualify for the policy, although certain policies may allow for partial disability benefits. Benefits can be paid for the insured's lifetime, or there may be limitations and expiration periods specified in the policy. In most cases, the disability must be due to an illness, accident, or sickness that would keep an individual from performing the duties of their specific occupation. Policies also typically include provisions for increasing benefits due to inflation.
Own-occupation policies are well worth considering for any professional who depends on their earning capacity, particularly those who are heading towards retirement. The peace of mind provided by having an own-occupation policy can be invaluable to those who generate their income from one specific profession. Taking the time to shop around for the right policy and analyze the provisions and benefits offered can greatly reduce future financial worries and ensure that a policyholder’s financial security is protected in the event of an illness or injury.