2019 Best Own Ocuppation Disability Insurance
If you are like most people, disability insurance is not very high on your list when it comes to coverage you should have.
Most workers take the standard (free or subsidized) disability insurance offered by their employer and if none is available, they simply forgo it.
This is strange because the risk of disability is far higher than the risk of death.
Disability insurance provides a source of replacement income during your disability.
It provides an income stream to partially replace the wages lost when you are unable to work for an extended period of time. Most policies limit coverage to 60 percent-70 percent of your previous income.
Short Term vs. Long Term Disability
Disability policies are classified as either short term or long term.
Short term policies only pay benefits for a maximum of 2 years, and many pay for only 3-12 months.
Long term policies typically pay benefits for at least 2 years. Most policies typically pay until you turn 65 or for the rest of your life.
Many businesses carry disability coverage for their employees, but by and large it’s short term coverage only.
It’s not uncommon for employees to be left on their own when it comes to long term disability.
Own Occupation vs. Any Occupation
When purchasing disability insurance, it’s important to understand the distinction between any- and own-occupation coverage. Any-occupation disability insurance requires that the policyholder be completely disabled and unable to work in any occupation before any benefits will be paid. Own-occupation disability insurance is tailor-made for those who work in a specific profession. Benefits will be paid if the policyholder is unable to work in his or her occupation, and payments are based on the policyholder’s current income.
The most important distinction in any disability coverage is the policy’s definition of disability.
Own occupation disability policies pay benefits if you’re unable to perform your own job.
Any occupation disability policies pay benefits if you’re unable to perform any job.
The definition of “any occupation” plan means you’ll receive disability benefits only if you’re unable to work at all. This mean your illness or injury prevents you performing the duties of any job for which you’re reasonably suited.
You don’t qualify for benefits if you can work in a different job from the one you had before your disability, based on your training, experience and education.
For example, brain surgeons should always carry own occupation disability policies. If they’re in an accident and lose functionality in their hand, their career as a brain surgeon would probably be over.
An own occupation policy would pay benefits in this circumstance. An any occupation policy would not, since the surgeon could still go work in another profession.
As you can guess, own occupation policies are more expensive than any occupation policies since they’re more comprehensive.
What to ask when buying disability insurance
When buying disability insurance make sure you understand the following. Ask your benefits administrator or insurance agent about anything you don’t understand.
General terms and conditions
- How the plan defines disability
- Are there any exclusions
- Are there any pre-existing condition clauses in the plan that you should be aware of
- How much the policy will cost
- Do you still need to make premium payments while living with a disability
- the amount of money you’ll get each month
- Are the benefits taxable
- Will benefits be adjusted for inflation
- How long you need to wait before starting to receive benefits
- Does the plan include partial disability benefits
- Can you increase your coverage without a medical exam
It is important to understand the benefits of having own-occupation disability insurance, and find the right policy for their career.
Get a Free Quote for Own Disability Insurance
In today’s uncertain economic climate, everyone needs the financial security of disability insurance.
Because you have invested considerable time and money into acquiring the skills necessary to practice your specialty, it is vital to protect that investment. A broker with experience catering to the healthcare community can help you find the right policy at the right terms to safeguard your future.
If you are looking to save money, you can request your free disability insurance quote now via our Contact Us form.
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