One in four American workers aged 20 will become disabled before reaching age 67, according to the Social Security Administration in 2020. Over half of the US workforce (in fact, 67 percent of private-sector employees today) have no long-term disability coverage. This leaves most Americans in a challenging situation if they can no longer work. A short- or long-term disability policy can help prevent financial catastrophe.
Definitions in any insurance policy govern how coverage applies. Most disability policies define disability in one of two ways. “Own occupation” and “any occupation” definitions are important distinctions that can help you choose the policy that best fits your circumstances.
“Own occupation” means the policyholder can no longer perform the essential functions of the occupation. So, if you’re a plumber, you can no longer perform the tasks needed to install a water heater, for example.
“Any occupation” means the policy will provide disability benefits only if the policyholder cannot perform any occupation the policyholder could perform by virtue of experience, training, or education. For example, if you’re a surgeon with an any occupation policy, you could find yourself working in another role in a medical facility if you could no longer practice as a surgeon.
Don’t Buy Online-Call for Help
Most of us are comfortable shopping online. That’s great when you’re buying shoes, but it can be a critical mistake when you’re considering something as important as disability insurance. You may want to complete online research to better understand the differences in disability policies and then with us so we can guide you in making the best choice for your budget and your professional demands.
As we age, disability can happen in unexpected ways. New threats, like the recent pandemic, present us with new disability management challenges. Call us today and we will help you navigate your disability coverage options.