Disability Terms

The following terms are unique to insurance purchased to protect you in the event you are unable to work due to an injury or illness.

Any-Occupation: A definition in a disability insurance policy that defines disability as the inability to perform the duties of any occupation. This is the strictest definition of disability that might appear in a disability policy and means you would only receive payment if you are unable to work in any occupation, not just your own.

Elimination Period: The waiting period before benefits begin. This is the period of time you are unable to work due to disability but would not be able to collect benefits under the policy. Waiting or elimination periods can range from as little as 3 days to longer than 30 days. Be sure you are aware of and comfortable with the elimination period in your disability policy. You may want to keep a rainy day fund large enough to pay your bills during this waiting period.

Own-Occupation: A definition in a disability insurance policy that defines disability as the inability to perform the duties of your current occupation. This definition of disability is liberal, because even if you can work in another occupation, you still receive disability benefits. Own occupation coverage is typically more expensive and may be available only to individuals who have a clean medical history and who work in a relatively risk-free occupation.