Own Occupation Disability Insurance for Physicians – Levels of Coverage

Losing your job due to an injury or disability can be difficult to handle. Besides the mental and physical implications, you also have to deal with the financial risks of having no income. This is  where disability insurance comes in, as it shields you from a financial crisis should you lose your source of income. Own Occupation Disability Insurance for Physicians, specifically, allows you to claim benefits even if you’re able to earn through any other job besides your specialty.

Own Occupation Disability Insurance for Physicians 

In addition to health insurance, disability insurance is something to consider as well. It’s vital to be able to take care of your family, especially as a single parent. In this article, we’ll discuss Own Occupation Disability Insurance for Physicians and how it works.

The Definition of Disability

Physician income disability insurance policies define disability in different ways. To qualify for benefits, you’ll need to meet specific requirements upfront and the declaration pages of your policy will detail the plan you were approved for. The pages outline the benefit period, the amount of monthly coverage, the duration of the coverage and all riders, in which you become qualified if you’re deemed disabled. Every insurance company defines disability in different ways and offers different types of policies.

Own Occupation Disability Insurance for Physicians 

Own Occupation vs. Any-Occupation Policy

Own Occupation Policy

This policy type lets you claim benefits even if you’re still able to earn an income from a job different from your specialty. Medical underwriting is completed prior to paying for the plan, but this only needs to be done one time. Once approved and initial payments made, the policy locks in the approval. If additional medical history arises afterwards, this won’t count against future benefits. Since Own Occupation Disability Insurance allows the insured to collect both income and benefits at the same time, the costs are generally higher than Any Occupation policies.

Any-Occupation Policy

Under this policy, the insured doesn’t receive any insurance benefits if they’re still able to work (even lower-paying jobs) after an injury or illness. Any Occupation policy premiums are usually less expensive as they have more restrictions than Own Occupation policies.

Forms of Own Occupation Disability Insurance

Having an Own Occupation policy can vary from one policy to another based upon the insurer chosen, so it’s important to select carefully. You want to read and understand every part of your policy before purchasing.

  • True Own Occupation – You’re eligible to receive benefits even if you’re employed in another occupation.
  • Transitional Own Occupation – Benefits are adjusted to consider the amount you earn from your new job (after the disability)
  • Own Occupation, Not Engaged – You may still be eligible for benefits if you can do any other job other than your specialty, however, you become ineligible if you take another job, or only receive a partial benefit if working in another job under this definition.
  • Hybrid Own Occupation & Any Occupation – You’re covered by Own Occupation for a certain amount of time before the coverage changes to Any Occupation.

Bottom Line

Disability insurance is vital for professionals, but especially physicians, as they study and train hard for years to gain the skills and knowledge required for their profession. Having disability insurance helps to protect your income in general but Own Occupation Disability Insurance for Physicians allows you to get the most of your insurance coverage to make yourself financially whole.