The Own-Occupation (Own-Occ) definition of disability is the strongest definition you can find in a policy. However, you should note that not all Own-Occupation definitions are the same. These are the three basic definitions you will find:
- True Own-Occupation: Due to sickness or injury you are unable to perform the material and substantial duties of your occupation. Benefits will still be paid if the claimant works in another occupation (or specialty, for physicians).
- Modified Own Occupation: Due to sickness or injury you are unable to perform the material and substantial duties of your occupation and you are not working.
- Transitional Own Occupation: Own-Occ definition that includes a benefit reduction provision which is based on the relationship of earnings to insurance and may pay a reduced monthly benefit based on the monthly benefit for total disability, your monthly earnings at time of claim, your prior earnings and your other disability coverage in effect at the time of disability. In other words, if you choose to work in another occupation while disabled, your monthly benefit may be reduced so the combination of your new income and disability benefits doesn’t exceed your pre-disability income.
If you are a physician, look for a policy that considers your medical specialty as your occupation. Only a few companies include this specialty language in the definition.
For more information about own-occupation coverage for specific occupations, visit:
Disability Insurance for Attorneys and Lawyers
Disability Insurance for Dentists
Disability Insurance for Executives and Business Owners