Own-occupation policy

(redirected from Own Occupation Policy)

Own-Occupation Policy

An insurance policy that pays benefits to the policyholder if he/she becomes unable to perform work for which he/she is qualified. For example, if a dictionary writer's hands fall off, he likely would be eligible for the benefits of an own-occupation policy because he would be unable to write definitions for the dictionary. Some own-occupation policies pay benefits if the policyholder becomes unable to perform his/her current job, while others only do so if he/she is unable to do any job that he/she would otherwise be able to do.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Own-occupation policy.

If you purchase an own-occupation disability insurance policy, you are entitled to receive benefits if a disability prevents you from performing the skilled work for which you have been trained.

Some other disability policies pay a benefit only if you are unable to do any type of work for which you're qualified.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
For example, if you should become disabled and can't perform some of your principal duties, a typical Own Occupation policy would require that you remain at work to receive benefits.
A modified own occupation policy is one that pays only if an insured is unable to engage in his or her chosen occupation and is also unable to work in a reasonably alternative occupation--or one for which the client is qualified by education, training, or experience.
This strategy is cost-effective and a more readily available alternative than an own occupation policy. The initial benefit period is contingent on an inability to perform all, or the principal, duties of the insured's occupation.
First, premium costs tend to be lower than for an own occupation policy. Second, the definition of disability is more favorable than that used for an "any-occupation" policy.