There is a lot to like about the protection offered by a disability insurance policy. Most people fail to think about the possibility, but it is a real possibility that you will be unable to work for at least one period throughout your career. Are you ready to survive that period from a financial standpoint and do you know whether you should have an Own Occupation Rider attached to your policy? Most people are not.
When paychecks suddenly stop flowing, it becomes difficult – if not impossible – for most people to get by.
This is exactly why disability insurance is so valuable. Having a quality disability insurance policy behind you can provide valuable peace of mind. You still don’t want to get hurt or ill and have to miss work, of course, but you will know that you have coverage if that should happen. Your disability insurance policy will kick in if you can’t work, and your bill will keep getting paid.
When you are able to return to work, you should still be in solid financial condition, and you can pick back up where you left off. When you think about the alternative – having no coverage and harming your financial future – picking up a disability insurance policy seems like an obvious choice.
A Potential Reservation
Of course, there is a cost associated with taking out a disability insurance policy. You will need to pay a monthly premium, and while these premiums tend to be relatively modest, they are still money that you need to spend. So, you will want to make sure that the potential reward of having a disability insurance policy is worth the expense. One reservation that some highly-trained people have with regard to buying a policy is the issue of not being able to go back to work at all to continue receiving your disability benefits.
For an example, let’s imagine that you are injured in such a way that you cannot work in your current occupation. Your job requires you to perform a specific skill or motion on a regular basis, and you simply can’t complete the task in your condition. That means you are disabled with regard to your own occupation, and you would be in line for payments from your disability insurance policy.
But this is where it can get tricky. If you don’t want to just sit around the house – if you want to get back to work in some capacity – you may lose out on some of your benefits. This is going to make it less attractive to go back to work, and you may just decide to stay home instead. That is not an ideal outcome for anyone involved.
It is important to shop intelligently when looking for a disability insurance policy. In this case, having an own occupation rider as part of your policy would be a huge help. What does an own occupation rider do? Simply put, it allows you to go back to work in another occupation while still receiving disability benefits from your policy. If you are deemed to be unable to work in your current occupation, your policy will pay out – even if you find something else that you can do in the meantime.
An own occupation rider is not something that you can just expect to find as part of every disability insurance policy. That simply isn’t how it works. Rather, you are going to have to seek out this rider to make sure it is included. Of course, this is the kind of homework that you need to do in advance. Once you have purchased the policy and need to make a claim, it will be too late to make changes. If this is something that is important to you, highlight it as a key criterion and only consider policies which include this rider.
To find out exactly what an own occupation rider would cost you, you should hire a non biased licensed disability coach to perform the research for you. Find your coach here.
Avoid Tricky Language
One of the troubles that you may run into when looking for an own occupation rider is the fact that not everything is as it seems in this market. You may come across policies which have own occupation language, but don’t really offer the coverage you need or want. It will take a little bit of reading and research, but you should be able to track down the right rider in the end.
With a true own occupation rider, you will be considered totally disabled and eligible for pay out from your policy if you are not able to perform the duties of your current occupation. That is to stay nothing of other occupations, where you may be able to work and earn a separate income. Basically, the disability insurance policy is separated from any work that you do in other areas. As long as you are unable to work in your own occupation, your claim should be valid.
It should be noted that you are unlikely to find a true own occupation rider when you get disability insurance through your employer. This is something you will need to look for on an individual plan in most cases, and even then, many options will not present this valuable rider.
Think About Your Situation
While an own occupation rider is a great feature to have as part of your policy, it might not be the best choice for everyone. Think about your current situation and what kinds of disabilities may take you off the job. Does your profession have specific physical requirements that may be impossible to complete if you suffer a certain injury? If so, own occupation is coverage that you will want to have.
The downside to having an own occupation rider is simple – the additional cost of your policy. Since the presence of this rider makes the policy more valuable overall, you can expect to pay at least a little bit more per month for your coverage. Is that added expense going to be worth it for you? Only you can answer that question, once you have all the necessary information at hand. Collect various policy quotes and coverages, compare them against each other, and make an informed choice.
Whether you choose to use an Own Occupation Rider to avoid being told, that even though you cannot completed the substantial duties of your original occupation, you could work behind the counter of the local diner…
It all boils down to this…
You only have three options to choose from when the unexpected accident or illness happens, and your payroll deposit stops:
- You can deplete your savings and retirement accounts
- You have a wealthy family member that will pay bills for you
- You planned ahead and have a disability insurance policy in place that delivers monthly, tax-free cash to your bank account, until you are ready to go back to work
Be smart and allow a disability insurance coach do the work for you. All of our coaches are disability insurance experts who are unbiased and not allowed to charge you a fee
by law. Hire a coach today by calling or clicking here.