A disability is a sickness or injury which interferes in your ability to work and earn a living. In disability insurance, there’s 3 types of definitions that a policy can use – the definition of disability in the policy is the most critical item to look at in a policy. As to which policy features which definition, you need to look at which carrier you’re using and what definition options their policies offer.
The 3 definitions of disability that a policy can use are:
1) True Own Occupation
2) Modified Own Occupation
3) Gainful Occupation
True Own Occupation (also referred to as “own-occ”) is the most favorable definition you can have on your policy. This definition says that you are considered totally disabled if, solely due to injury or sickness, you are not able to perform the material and substantial duties of your occupation, even if you are at work in another occupation. Guardian’s ProVider Plus product features this definition and also has a specialty definition for medical or dental specialists that have limited their occupation to a single specialty. That specialty is considered to be their occupation, even if they can work in another medical occupation.
Modified Own Occupation has become the most common definition that most disability policies offer today. The first part of the modified definition is similar to the True Own Occupation definition, however, the second part of the modified definition is where the major change comes into play. The definition says that you are considered totally disabled if, solely due to injury or sickness, you are not able to perform the material and substantial duties of your occupation, and are not engaged in any other occupation.
Gainful Occupation is a definition that is more commonly used in group disability plans or plans offered by property and casualty companies that offer disability coverage. This definition provides the least coverage out of every disability plan. If you have a disability plan with this definition, you may want to look at securing coverage with a modified or true own occupation definition – or at the very least supplement the coverage. Many people who are looking for the cheapest disability plan will often end up with this definition on their policy.
Disability insurance is a very complex type of insurance with many moving parts. You cannot simply shop for a disability policy as you would for a term life insurance policy. For this type of coverage, you want to work with agents that have in-depth knowledge of products, how disability insurance works, and experience with these programs to help you through the process from start to finish. We make getting disability insurance as seemless a process as possible.
Even if you already have disability insurance in place, you may want to review your current coverage to see if there is a program available to you that offers better benefits and guarantees.
Give us a call today at 1-888-972-0024 to learn more about disability insurance and how it can help you protect one of your greatest assets – your ability to work! CLICK HERE to send us an e-mail.