Compare own occupation disability insurance

What is own occupation disability insurance?

Own occupation disability is a type of disability insurance policy that pays out a monthly benefit equal to a percentage of your income if you suffer a disability and can’t work your specific job.

The key part of an own occupation policy is that you can still receive your monthly disability benefit after returning to work — as long as you’re unable to work the same job that you had before you went out on disability.

Own occupation vs. any occupation

Own vs any occupation refers to the type of work that disqualifies you from receiving disability benefits.

• Own occupation. You won’t qualify for disability payments if you’re able to return to work in the exact same occupation or capacity as you had before your disability. This means you can receive disability payments and return to work in other capacities, even if it’s in the same industry — a broader, and more favorable return-to-work guideline.
• Any occupation. You’ll be ineligible to receive your disability payments if you can return to work in any capacity or occupation — a much stricter return-to-work guideline.

What are the different types of own occupation disability insurance?

While own occupation disability policies offer broad coverage, there are subtypes that further breakdown how you’ll be paid once you return to work.

True own occupation disability insurance

A true own occupation disability policy is the most comprehensive type of own occupation policy. As long as you’re suffering a physical or mental disability and can’t perform your regular job, this policy will pay you a monthly benefit.

You’ll still be eligible for 100% of your monthly benefit if you take another type of job, regardless of how much it pays. But, be sure to clarify with your insurer how it defines occupation, and whether it considers your whole professional specialty your occupation, such as medicine, education or law.

True own occupation disability has the most relaxed guidelines for disability policies, which also makes it the most expensive. This type of policy is best for high-earners who are highly specialized and can afford the steep premiums, such as doctors, lawyers, or executives.

Transitional own occupation disability insurance

A transitional own occupation disability policy is similar to a true own occupation policy, but won’t pay out the full benefit once you return to work. Instead, your monthly benefit is reduced by the amount that your new job pays you. You’ll still be able to receive 100% of your pre-disability income, but not more than that.

This type of policy might be a good option for professionals who want to ensure they get all of their pre-disability income, but can’t afford to buy a pricier true own occupation disability policy.

Not engaged own occupation disability insurance

Also known as a modified own occupation policy, this type of policy has the most restrictive own occupation definition. It will stop paying your disability benefit if you start work in any type of job.

The difference between this policy and an any occupation policy is that a not engaged policy stops paying when you actually begin working. Any occupation policies stop paying when you’re physically able to begin working, regardless of whether you actually return to work or not.

A policy like this is more affordable than a true or transitional own occupation policy and could be a good fit for teachers or dental assistants who likely won’t find immediate employment in their same industry while on disability.

Adjustable hybrid policies

This policy is a combination of an own occupation and an any occupation policy. It starts out as an own occupation policy that pays out the benefit even if you return to work. However, the own occupation period is limited to a specified amount of time, after which, the policy becomes an any occupation policy, where being able to return to any job disqualifies you from receiving disability benefits.

For example, the policy may be considered an own occupation policy for two years. If you return to work within those two years, you’ll receive your disability benefit. After two years, your policy is considered an any occupation policy, and being able to work disqualifies you from receiving disability payments.

How do I pick the best policy for me?

Compare disability insurance companies

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Name	Product	Coverage Amount	Benefit period	Waiting period	Own Occupation	Medical exam required
Policygenius Disability Insurance		$100 to $20,000	2, 5, or 10 years or until age 65 or 67	60 - 365 days	Yes	Depends on provider	Get matched with one of 15 top life insurance companies to find the best coverage and rates for you.	Go to site More Info	Compare	loading Fetching your data...
Breeze		$500 to $20,000	1, 2, 5, or 10 years or until age 65 or 67	30 - 365 days	Yes	No	This startup offers some of the most riders and benefits backed by an established underwriter.	Go to site More Info	Compare	loading Fetching your data...
LeverageRx		$100 to $20,000+	1, 2, 5, or 10 years or until age 65 or 67	30 - 365 days	Yes	Depends on provider	Protect your income with own occupation disability insurance exclusively for medical professionals.	Go to site More Info	Compare	loading Fetching your data...

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Bottom line

Own occupation disability insurance provides more comprehensive coverage than any occupation disability. It allows you to return to work and make money while still paying you a monthly disability benefit — as long as you’re not working in the job you had when you suffered a disability.

Read about and compare different disability insurance companies to see which one is the best fit for you and your budget.

Common questions about own occupation disability insurance

• Does own vs. any occupation apply to both short and long term disability policies?

  Yes, you can have an own occupation policy or any occupation policy for both short and long term disability.

• Can I have more than one disability insurance policy?

  Yes, It’s common to have a private disability policy and an employer-based one. Having multiple disability policies can help protect your income for a longer time period.