Personal disability insurance might be one of the most important types of insurance a working person can own – it protects against the financial risk of some day becoming unable to work because of an injury or illness. Understanding the guidelines for that which constitutes a disability is therefore extremely important for any consumer interested in obtaining an individual disability policy.
Every disability income insurance policy is different from the next and since professionals earn an income by working in various occupations, it is important that the policy you purchase provides benefits if you are unable to work in your specific occupation. The clause that provides a description of these conditions is known as the “definition of total disability”. The definition of total disability provides a description of the circumstances under which an insured may be eligible for benefits.
Consumers should understand that this provision will not include the name of your exact title or profession. Instead, it may state that a total disability occurs when you are unable to perform the material and substantial duties of your occupation, or any occupation, depending on the exact policy. The term “occupation” will generally be further defined as the occupation for which you are participating, during the 12-months prior to becoming disabled.
For purposes of obtaining a comprehensive policy, consumers should look for a policy that includes wording which is specific to their own occupation. A policy that uses the any-occupation definition of disability, may be more difficult to collect on for highly skilled professionals.