If you are researching disability insurance you have probably heard about “True Own Occupation” coverage or “Own-Occ” coverage. One of the most important things you need to decide is if you want to pursue this type of coverage. It can be really important for certain occupations.
What is “Own Occ” Disability Insurance?
When people talk about Own Occupation Disability Insurance they are referring to the definition of total disability in the actual disability insurance contract. True Own-Occupation coverage is usually the strongest definition of disability available. With this type of coverage you are protected if you have a medical condition that does not allow you to work in your current occupation – EVEN IF YOU CAN WORK IN ANOTHER OCCUPATION. That means with Own-Occupation coverage your policy will pay your disability benefits for a wide range of medical conditions that might otherwise not be considered as “disabling.” This type of coverage is really important for highly specialized occupations. Own Occupation Disability Insurance is truly insuring your ability to perform a specialized task.
Example of True Own Occupation Disability Insurance
Let’s say you are a Physician Assistant. A major part of your job is using your vision and your hands to assist in surgery. If you lost vision in one of your eyes would you be able to perform your job? With vision in only one eye you would not have depth perception and it would be dangerous to use scalpels and other medical devices during surgery. Losing vision in one eye isn’t commonly thought of as a permanent disability. Plenty of people have great lives and make a lot of money even though they only have vision in one eye. For a physician assistant, however, losing that vision would be truly disabling.
If a physician assistant had a True Own Occupation Disability Insurance Policy, they would be eligible for their full disability benefit. The insurance company would not ask them to go get another job. The benefits would pay even if they went and got another job – regardless of how much money they made.
True Own-Occupation coverage is usually the strongest definition of disability available. With this type of coverage you are protected if you have a medical condition that does not allow you to work in your current occupation - EVEN IF YOU CAN WORK IN ANOTHER OCCUPATION.
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