What is an Own-Occupation Policy?
An own-occupation policy is a specific type of disability insurance designed to protect professionals who become unable to work in their chosen field due to illness or injury. Unlike regular policies that might require the insured to seek any job they are able to perform, an own-occupation policy pays benefits if the policyholder cannot perform their specific occupation, even if they can work in another role.
This type of coverage is especially beneficial for individuals in specialized professions, such as doctors, lawyers, or other high-income earners, where the ability to perform their exact job is crucial to their income. If they are unable to complete the duties associated with their own occupation, they may receive benefits that replace a portion of their lost income, allowing them to maintain financial stability.
Own-occupation policies typically have higher premiums due to the comprehensive nature of the coverage provided. When buying such a policy, it's important to carefully review the terms, including definitions of disability and any exclusions, to ensure it meets your specific needs. Overall, this type of insurance offers tailored protection that secures your financial future in the face of unforeseen circumstances that could hinder your career.