Understand Diability Insurance Contract Wording of Total Disability
The main purpose of disability insurance is to to replace an individual's income should they be unable to work, helps to balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality as a result of either an accident or a sickness. In this article, we will discuss the contract wording of total disability of disability insurance.
Not all contracts contain all of these definitions and some insurers may vary the definitions. For this reason, it is important to know the definitions contained in the policies that you buy. Most types of disability insurance are usually available for benefit periods of 2, 5, 10 years or to age 65. Total Disability definitions can vary depending on type of the plan and insured occupation. The definition of disability it contains and how the policy determines when the insured qualifies for benefits.
1) Own occupation definition
Insured is considered totally disabled if she/he is unable to perform the substantial duties of his/her regular occupation,due to an accident or sickness. If the insured is employed in a new unrelated occupation than she/he can continue to receive the benefits of the policy.
Example:
Dr. Jenson is a surgeon who has lost the use of his hand and no longer can perform surgery.If his policy has an own occupation definition, he can work as a professor, earn an income and still receive his disability benefits.
2) Regular occupation definition
This definition is more strict than the definition of own occupation. Under regular occupation basis, the insured must be unable to perform the substantial duties of their regular occupation due to the result of an accident or sickness and the insured must not be gainfully employed in any occupation. Generally, if the insured has a policy with a specified benefit term for the regular occupation definition and the claim lasts longer than that period then the definition will automatically change to an any occupation definition.
3) Any Occupation Definition
This is the most restrictive definition that means the insured is considered totally disabled if they are unable to perform the substantial duties of any occupation for which that person is reasonably suited by training, education or experience due to the result of an accident or sickness.
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