The Difference Between Own-Occupation and General Disability Income Insurance

It’s important to know the differences between job specific disability coverage and general disability income insurance. If you specialize in a certain field, you can get a disability plan for your own-occupation. Take for instance a veterinarian, who works exclusively with horses; they may want to take out a disability income plan for their own occupation as a horse veterinarian. If they are ever disabled and can no longer work with horses, then the plan will cover them. Even if they’re qualified and capable to treat other animals, the plan will cover them because they can no longer work in their speciality. 

If, however, someone does not have a plan for their own occupation, then the plan may or may not pay out. With a general plan type, the insurer does not consider a person disabled if they can still get a job in the field for which they were educated or trained. So, the horse veterinarian under a general plan type would not receive benefits if they could no longer work with horses; they would simply need to work with other animals.

If you’re self-employed, then you can apply for a plan through the company. In doing so, you will have been paying for the plan pre-taxed. If you become disabled, then the benefits will be taxed. However, if you pay for the plan with after-tax dollars, then the benefits are not taxed.

There are so many nuances when it comes to disability income insurance because it takes into account every facet of one’s career. Therefore, it’s important to contact an agent. An agent will ask the right questions so that they can fit you with the right plan. Don’t navigate the confusion of disability income insurance along. Talk to an agent.

Since insurance is oftentimes overwhelmingly confusing, we want to shed light on this industry by answering YOUR questions.  So if you have any questions or concerns, comment below and your question may be the topic of our next video!

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