Own-Occupation Insurance: What is it & is it right for you?
As a physician, your ability to work is tied directly to your income and livelihood. If you become disabled, your employer-offered default group insurance plan may not cover you completely in the event of the unexpected. With Own-Occupation disability insurance becoming more affordable in recent years, it can be a worthwhile option for physicians across every specialty.
What is Own Occupation Disability Insurance
Under a true own-occupation disability policy the definition of disability is based on the inability of the insured to perform the duties required within their specific occupation instead of the ability to perform any job. That means that if the insured is unable to perform those specific occupational duties required of their profession, they are considered totally disabled and eligible for benefits under the rules of the policy. This means that even if you work within a different medical field, you would still be eligible to receive benefits.
How does it work?
If you become disabled, the policy will provide monthly benefit payments to replace a portion of your lost income based on the conditions of the policy. As the loss of income amount varies among carriers this is an important condition to be aware of. These benefits will continue until you can return to work within your specific occupation or for the duration of the policy's benefit period, which can range from a few years to retirement age.
Why is it important?
Typically, own-occupation disability insurance is not offered through your employer and is sourced via an independent insurance carrier. While many employers do offer group disability policies, they are typically a “one size fits all” solution for the medical group and does not offer coverage based on the duties within your specialty. Another upside is that independently sourced own-occupation disability insurance offers consistent coverage that will follow you throughout your career regardless of your current or future employer.
How do you choose the right Own Occupation Disability Insurance policy?
Choosing the right Own Occupation Disability insurance can be a complex process and there are several factors to consider. It’s important to consider your individual needs and review the key factors to choose the policy that best fits your needs. The cost of the policy, benefit amount, maximum benefit period, any policy exclusions, cost-of-living adjustments, and catastrophic benefits are all important to review to make sure you are adequately covered in the event of a disability.
If you’re considering if own-occupation insurance is right for you we’d love to provide our expertise and guidance to help you navigate the process. We help with the assessment, cost analysis, and policy selection to recommend the policy that’s the right fit for you. We make the process stress free and simple by reviewing quotes from carriers, so you don’t have to, then we recommend the right policy fit for you.
By utilizing Fortress to do the heavy lifting of policy comparisons the client below was able to save $50k+ over the life of their career. We’d love to help you do the same!