Disability Income Insurance
What does disability do for me?
Disability income insurance policies are designed to provide an individual with a defined amount of regular income in the event he or she cannot continue to work due to debilitating injury or illness. Statistics show that it is far more likely that an individual will become disabled rather than pass away during their working years. Disability insurance can exist on an individual or group basis, much like health and life insurance.
Benefits paid on a disability policy are in the form of a monthly check. Something to note however, is that disability insurance has benefit limits. Insurance companies will determine the amount of disability coverage that an applicant can apply for based on the insured's earnings. This cap can vary depending on the product and benefits selected. With the exception of a partial disability policy, the insured must be totally disabled before benefits are payable. The definition of total disability changes based on the policy and the insured must meet the requirements set forth in their contract. The two definitions are any occupation own occupation.
Any Occupation
The "any occupation" definition of disability provides that the insured must be incapable of performing any occupation for which he or she is reasonably suited through education, training, or experience in order to qualify for disability income benefits under the "any occupation" definition.
Own Occupation
The "own occupation" definition of total disability requires the insured be unable to work in their own profession as a result of a given accident or illness. It is easier to qualify under the "own occupation" definition, but it also more expensive and harder to qualify for. Often a policy will provide for benefits with either definition, paying a set amount for own occupation and another amount for any occupation.
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