“Own Occupation” Disability Insurance
From the time you start dental school, to wherever you are in your career now, I’m sure you’ve heard that you need “own occupation” disability insurance. While that sounds easy enough, it can be a bit confusing. Own Occupation basically means the policy will protect you in your specific occupation as a dentist. If you can’t practice dentistry, even if you are working in another occupation, you will receive benefits from the insurance company. However there are multiple versions, and sub-categories of “own occupation” language:
- True Own Occupation
- Allows you to earn any amount of money in a new occupation if disabled, and receive no offset in disability benefits
- Transitional Own Occupation
- Allows you to earn up to 100% of your original occupation’s pre-disability income before any offset in income benefits would occur
- Modified Own Occupation
- Disability benefits would be reduced if you earn more than 20% of your pre-disability earnings
- Temporary Own Occupation
- Some policies will have a temporary period where you are covered under “own occupation” language, and then the policy will convert to “any occupation”. Most often it will happen after 2 years (many association or group policies are set up this way)
- Any Occupation
- You must be unable to work in any occupation you are reasonably qualified for
While “true own occupation” coverage is ideal, it is also the most expensive. If you are looking to cut cost on your premiums, you may want to consider another form of “own occupation”. Give us a call and we can help you decide what policy would best fit your needs.
