'Own Occupation' in disability insurance refers to the specific profession or medical specialty that you were performing at the time of becoming injured or sick. It is a key rider for doctors to have on their policy
Own Occupation: Disability Insurance For Doctors Explained
Specialty Specific Policy Contractual Clause
In the realm of disability insurance, the term 'Own Occupation' holds significant importance, particularly for professionals like doctors who have invested considerable time, effort, and resources into their specialized training. This glossary entry aims to provide an in-depth understanding of the concept of 'Own Occupation' in the context of disability insurance for doctors, its implications, benefits, and considerations.
Disability insurance is a type of coverage that provides income replacement in the event that the insured individual becomes unable to work due to an illness or injury. For doctors, who often have high earning potential and significant financial obligations, disability insurance is a critical component of a comprehensive financial plan. The 'Own Occupation' provision in a disability insurance policy is particularly relevant for doctors, as it defines the circumstances under which a claim can be made.
Definition of 'Own Occupation'
The term 'Own Occupation' in disability insurance refers to the specific profession or job that the insured individual was performing at the time of becoming disabled. In the context of doctors, it refers to their specific medical specialty. For instance, if a neurosurgeon becomes unable to perform surgeries due to a hand injury, the 'Own Occupation' provision would apply.
Under an 'Own Occupation' policy, a doctor is considered disabled if they are unable to perform the duties of their specific medical specialty, even if they are still capable of working in a different medical field or occupation. This is a crucial distinction, as it means that the insured doctor can receive disability benefits while still being able to earn income from another job or profession.
True Own Occupation vs. Modified Own Occupation
When discussing 'Own Occupation' disability insurance, it's important to distinguish between 'True Own Occupation' and 'Modified Own Occupation'. A 'True Own Occupation' policy provides benefits if the insured doctor is unable to perform the duties of their specific medical specialty, regardless of whether they are working in another job or profession.
On the other hand, a 'Modified Own Occupation' policy only provides benefits if the insured doctor is unable to perform the duties of their specific medical specialty and is not working in any other job or profession. This means that if the doctor chooses to work in a different field after becoming disabled, they may not receive benefits under a 'Modified Own Occupation' policy.
Benefits of 'Own Occupation' Disability Insurance
The primary benefit of 'Own Occupation' disability insurance is that it provides a high level of income protection for doctors. Given the significant investment in education and training that doctors make, and the high earning potential they have, protecting their ability to earn income in their specific medical specialty is crucial.
Another key benefit is the flexibility it offers. With an 'Own Occupation' policy, doctors have the option to work in a different field or profession if they become unable to perform the duties of their specific medical specialty, without losing their disability benefits. This can provide a significant financial safety net, particularly for doctors who have specialized skills that may not be easily transferable to other fields.
Considerations When Choosing 'Own Occupation' Disability Insurance
While 'Own Occupation' disability insurance offers significant benefits, there are also important considerations to keep in mind when choosing this type of policy. One of the primary considerations is the cost. 'Own Occupation' policies are typically more expensive than other types of disability insurance due to the higher level of coverage they provide.
Another important consideration is the definition of disability used in the policy. Some policies may have a more restrictive definition of disability, requiring the insured doctor to be completely unable to work in their specific medical specialty in order to receive benefits. It's crucial for doctors to carefully review the policy terms and conditions to ensure they understand the coverage they are purchasing.
Own Occupation and Disability Insurance for Doctors: Conclusion
'Own Occupation' disability insurance can provide a critical financial safety net for doctors, protecting their ability to earn income in their specific medical specialty. However, it's important for doctors to carefully consider their individual needs and circumstances when choosing a disability insurance policy, and to seek professional advice if needed.
While the cost of 'Own Occupation' disability insurance can be higher than other types of coverage, the benefits it offers in terms of income protection and flexibility can make it a valuable investment for many doctors. By understanding the key features and considerations of 'Own Occupation' disability insurance, doctors can make informed decisions about their insurance coverage and financial planning.
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Disability Insurance is Complicated
Here are answers to frequently asked questions...
No, the only thing you will ever pay is a premium to the insurance company that provides the disability insurance policy for you.
Yes, we have access to various discounts based on your income, your affiliation with a specialty association and other factors. These discounts will be determined and applied during your quote request process
Rates are based on your age, health history, smoking status, gender and income. The insurance company also compares and makes assessments based on similar individuals with the same profile like age, gender, smoker status, specialty and province of practice. Unlike association rates which are based on the claims of the whole group i.e. your rate is affected by someone who smokes even if you don't smoke, or if you neve claim and other claim multiple times, for example.
We simplify the process knowing how busy doctors get and need flexibility. The first step is simply to request your quotes and getting a sense of the cost and coverage available. Next, we compare the policy options and other riders like Own Occupation and discuss what makes sense for you and answer your questions. Lastly, you apply and buy risk-free.
Yes you can increase it and that is our recommendation. Anywhere you do residency in Canada for example, you’re automatically enrolled in a health-benefits plan, which includes disability insurance coverage. As a resident you can purchase a private disability policy under the Medical Student Offer for example. The benefit of this is that you don't have to go through a medical examination to qualify.
The more relevant clause is what's called "Future Income Option" which gives you the option in the future to buy more disability insurance if your income increases, without having to worry about your health having changed just in case. The monthly benefit and premium will depend on your new income, age, and province you’ll be practicing. The process is simple and will not require you to undergo medical underwriting.
In most cases, it can take between 1-3 months from beginning to end. A lot of the time may depend on follow up information required by the insurance company. In our experience 1 month is usually a standard timeframe.
As an independent insurance broker we have no affiliation with any one insurance company. We know which insurance company is most suited for the type of disability insurance policy that is most conducive for doctors. As a broker we get a finders fee from these insurance companies and they are all the same, without any financial conflict of interest either.
Underwriting is where the insurance company verifies your information that you submitted on the application your complete with us and gathers additional details such as health history , travel, and personal history to determine the best rate possible.