Own-Occupation Policy

DEFINITION of 'Own-Occupation Policy'

An insurance policy that covers individuals who become disabled and are unable to perform the majority of the occupational duties that they have been trained to perform. This type of insurance policy is contingent on the individual being employed at the time the disability occurs.

Also known as a "pure own-occupational policy".

BREAKING DOWN 'Own-Occupation Policy'

Persons not working at the time of disablement will not be able to claim insurance under an own-occupation policy but, if they are covered under a modified own-occupational policy, they will. Under a modified policy, the definition of disabled includes persons not working at the time of their disablement. These types of insurance policies apply to highly trained individuals, such as surgeons.

Because the definition on own-occupation is very flexible, persons covered under an own-occupation policy may find another job and still receive full benefit payments.

RELATED TERMS
  1. Any-Occupation Policy

    A term used in the insurance industry to refer to a specific ...
  2. Waiver Of Premium For Disability ...

    A provision in an insurance policy that states that the insurance ...
  3. Disability Insurance

    A program managed by the Social Security Administration that ...
  4. Total Permanent Disability (TPD)

    A condition in which an individual is no longer able to work ...
  5. Policy Or Sales Illustration

    An educational tool that shows a prospective or new insurance ...
  6. Noncancellable Insurance Policy

    A life or disability insurance policy that an insurance company ...
Related Articles
  1. Options & Futures

    The Disability Insurance Policy: Now In English

    Learn to translate this complicated policy so you can rest assured you're covered.
  2. Investing

    Advising FAs: Explaining Disability Insurance to a Client

    Disability is a very critical type of insurance that most individuals should consider carrying. When it comes to your personal finances, long-term disability can have a devastating effect if ...
  3. Insurance

    Tips for Insuring Your Salary

    Those with high incomes really can’t afford to be without disability insurance. Here's why.
  4. Home & Auto

    Intro To Insurance: Disability Insurance

    By Cathy ParetoAside from health insurance, disability is a very critical type of insurance individuals should consider having. When it comes to your personal finances, long-term disability can ...
  5. Professionals

    Disability Income Insurance

    Disability Income Insurance
  6. Professionals

    Disability Insurance

    Disability Insurance
  7. Professionals

    Group Disability Insurance

    Group Disability Insurance
  8. Insurance

    Group and Individual Disability Insurance: What You Need to Know

    What you need to know about group and individual disability income coverage.
  9. Personal Finance

    Disability and Business Overhead Coverage for the Self-Employed

    What every small business owner or professional needs to know about individual and business overhead disability income insurance plans.
  10. Professionals

    Benefit Amounts

    Benefit Amounts
RELATED FAQS
  1. Is there a limit on the amount of disability insurance that I can buy?

    Disability insurance policies are designed to partially replace your income in the event that you become disabled and cannot ... Read Answer >>
  2. What's the difference between casualty insurance and disability insurance?

    Casualty insurance is often called "property casualty insurance", and it provides insurance protection for your property ... Read Answer >>
  3. What is disability-income insurance?

    Disability-income insurance is insurance that provides financial benefits to a policyholder in the event of sickness or injury ... Read Answer >>
  4. What are some examples of industries that practice price discrimination?

    Understand the various types of insurance coverage offered in the insurance marketplace, and learn why each policy should ... Read Answer >>
  5. Are my Social Security disability benefits taxable?

    Understand in which situations your Social Security disability benefits are taxable, as well as which states impose state ... Read Answer >>
  6. What are the maximum Social Security disability benefits?

    Find out the maximum Social Security disability benefits for qualifying individuals and couples in 2015, including who is ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center