CFP

AAA

Group Disability Insurance - Definition of Disability

The policy has a provision defining under what conditions you will, or will not be awarded benefits. This provision is called the definition of disability.

  • Own Occupation ('own occ') - The insured is unable to work at his or her own occupation due to an accident or sickness. Because this is more beneficial to the insured, it is more expensive and difficult to qualify for.
  • Any occupation ('any occ') - The insured is unable to perform any occupation for which he or she is suited based upon education, training or experience. This definition of disability is more restrictive, less desirable for the insured, more so for the insurer.
Most plans offer two tiered coverage with the own occupation definition used for a period of time initially and then the any occupation definition if the disability's duration turns out to be longer than expected.

Eligibility
comments powered by Disqus
Related Articles
  1. 7 Ways To Protect Against Credit Card ...
    Credit & Loans

    7 Ways To Protect Against Credit Card ...

  2. New 2015 Contribution Limits: Advisors ...
    Investing Basics

    New 2015 Contribution Limits: Advisors ...

  3. The Fear And Greed Cycle Lives On
    Markets

    The Fear And Greed Cycle Lives On

  4. Credit Card Breach: How To Stay Safe
    Credit & Loans

    Credit Card Breach: How To Stay Safe

  5. Six Things Bad Financial Advisors Do
    Investing Basics

    Six Things Bad Financial Advisors Do

Trading Center