In disability insurance, what does 'own occupation' coverage mean?

'Own occupation' coverage in disability insurance specifically means that benefits are paid to the insured if they are unable to perform the duties of their specific job or profession. This type of coverage is designed to provide financial support to individuals who are unable to carry out their specialized work due to a disability, even if they are capable of performing other types of jobs.

The significance of 'own occupation' coverage lies in its focus on the individual's unique skill set and profession. For example, if a surgeon becomes disabled and is unable to perform surgery, they would be eligible for benefits under this type of coverage, regardless of their ability to work in another field or perform other jobs that don’t require the same qualifications.

This approach is particularly beneficial for professionals who have invested significant time and resources in their specific careers, as it recognizes the value and expertise tied to their occupation. Unlike broader definitions of disability that may provide benefits based on an inability to work in any capacity, 'own occupation' coverage acknowledges the nuances of different professions and offers tailored protection to those who have specialized skills.