Own Occupation Disability Insurance
Own occupation disability insurance is a type of disability insurance that pays you a benefit if you are unable to work in your current occupation due to illness or injury. This is in contrast to general disability insurance, which only pays you a benefit if you are unable to work in any occupation.
Own occupation disability insurance is especially important for professionals in high-income fields, such as healthcare, science, and business, where their income is largely dependent on their specialized skills and knowledge. This is also important for business owners and anyone who earns a significant portion of their income from commissions, bonuses, or equity.
Most employer-sponsored disability insurance plans are general disability plans, and they may not cover all of your income. This is where a second own occupation disability policy may be necessary.
Own occupation disability insurance can be expensive, but it is worth it for high-income earners who have specialized skills and who are not easily replaceable.
Here are some of the benefits of own occupation disability insurance:
- It pays you a benefit even if you can work in another occupation.
- It can protect your entire income, including bonuses, equity, and overtime.
- It can give you peace of mind knowing that you are financially protected if you are unable to work in your current occupation.
If you are considering purchasing own occupation disability insurance, it is important to do your own research, and find a policy that best fits you!