Disability Insurance Basics
What is the definition of disability for insurance purposes?
The definition of disability varies by policy. Own-occupation: cannot perform the material duties of your specific occupation. Any-occupation: cannot perform any occupation for which you are reasonably suited. Modified own-occupation: own-occupation for the first 2-5 years, then any-occupation. Own-occupation is the most comprehensive definition.
Key Points
- Own-occupation: cannot perform your specific occupation — most comprehensive
- Any-occupation: cannot perform any occupation — most restrictive
- Modified own-occupation: own-occupation for 2-5 years, then any-occupation
- SSDI: very strict definition — cannot perform any substantial gainful activity
- An independent agent can help you choose the right definition