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Insurance · Disability Income and Long-Term Care

What is the difference between 'own-occupation' and 'any-occupation' disability definitions?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

Own-occ: disabled if unable to perform the duties of YOUR specific occupation. Any-occ: disabled only if unable to perform ANY occupation for which you're qualified by education and experience — a much stricter standard

  1. A Own-occ is only for doctors and lawyers
  2. B Own-occ: disabled if unable to perform the duties of YOUR specific occupation. Any-occ: disabled only if unable to perform ANY occupation for which you're qualified by education and experience — a much stricter standard
  3. C They are the same standard with different names
  4. D Own-occ pays more; any-occ pays less

Why this is the answer

The disability definition is the most important policy provision in a disability income contract. OWN-OCCUPATION ('own occ'): if a surgeon loses fine motor control and cannot perform surgery, they are 'totally disabled' under own-occ even if they could work as a teacher — their specific occupation is the standard. ANY-OCCUPATION ('any occ'): the surgeon described above would NOT be disabled — they can perform 'any occupation' (teaching, consulting, etc.) for which their education qualifies them. Any-occ is the standard for most employer-sponsored group LTD policies. Own-occ is available in individual disability policies, typically at higher premium. For professionals whose income depends on their specific skills (surgeons, pilots, athletes), own-occ coverage is critical.
Source: Health Insurance Exam, Own-Occ vs Any-Occ

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About this topic: Disability Income and Long-Term Care

Disability income and long-term care questions cover definitions of disability, elimination and benefit periods, riders, and the triggers and benefits of long-term care policies including partnership programs. This is one of 9 Health Insurance questions on disability income and long-term care, each with a full explanation on a single study page.

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