Own-Occupation Disability Insurance
Own-occupation pays benefits if you cannot perform YOUR specific occupation, even if you could work in another field.
Exam Tip
Own-occ = best definition. Group plans switch to any-occ after 24 months. After-tax premiums = TAX-FREE benefits.
What is Own-Occ Disability?
Strongest definition of disability.
Own-Occ vs. Any-Occ
| Feature | Own-Occ | Any-Occ |
|---|---|---|
| Definition | Can't do YOUR job | Can't do ANY job |
| Premium | Higher | Lower |
| Best for | Specialists | Budget-conscious |
Example: Surgeon with Tremors
- Own-occ: Full benefits + can earn consulting income
- Any-occ: No benefits (can work as consultant)
Tax Treatment
If YOU pay premiums (after-tax) = benefits TAX-FREE.
Study This Term In
Related Terms
Disability Insurance
Disability insurance provides income replacement when a policyholder cannot work due to illness or injury, typically paying 60-70% of pre-disability income after an elimination period.
Elimination Period
The elimination period (also called waiting period) is the time between when a disability or long-term care need begins and when insurance benefits start being paid.
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