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Do we need "own occupation" or "regular occupation"?

Home Insurance Do we need "own occupation" or "regular occupation"?

  • Avatar WhiteCoatSpouse 
    Participant
    Status: Spouse
    Posts: 10
    Joined: 02/02/2019

    Hello,

    We’re looking at disability insurance (Principal) and wondering if we need either of the following options.

    1) “Own Occupation”($15 monthly premium): Will pay if you are unable to work in your specific occupation and choose not to become employed in another occupation.

    2) “Regular Occupation” ($50 monthly premium): Will pay if you are unable to work in your specific occupation even if you become employed in, and receive compensation from, another occupation.

    The reason why I’m asking is because my spouse is a hospitalist. I believe that if she’s disabled to the point where she can’t work as a hospitalist then she is probably “too disabled” to work anywhere else. All feedback is welcomed. Thanks.

    #214221 Reply
    Avatar Chessknt 
    Participant
    Status: Resident, Physician
    Posts: 7
    Joined: 04/16/2018

    My policy has a rider that functionally does the same as your second option so that must be company specific language.

    I would disagree disability as a hospitalist means too disabled to do anything else. Hospitalists have to move around a fair bit but if she could sit still to do admin work or chart reviews then there is potential for work in that capacity. I think it is an important rider because it makes you feel like you can still look for work to be productive without losing your income safety net.

    #214223 Reply
    Scott at MD Financial Services Scott at MD Financial Services 
    Participant
    Status: Website Sponsor, Insurance Agent, Small Business Owner
    Posts: 429
    Joined: 01/14/2016

    Hello,

    We’re looking at disability insurance (Principal) and wondering if we need either of the following options.

    1) “Own Occupation”($15 monthly premium): Will pay if you are unable to work in your specific occupation and choose not to become employed in another occupation.

    2) “Regular Occupation” ($50 monthly premium): Will pay if you are unable to work in your specific occupation even if you become employed in, and receive compensation from, another occupation.

    The reason why I’m asking is because my spouse is a hospitalist. I believe that if she’s disabled to the point where she can’t work as a hospitalist then she is probably “too disabled” to work anywhere else. All feedback is welcomed. Thanks.

    Click to expand…

    My opinion is that Principal has a bad title for their Own Specialty Title when compared against the market place since the base contract comes with Own Occupation but the better rider with them is rider HH757 Regular Occupation.  The real question you have to answer is if she gets hurt and can’t do hospitalist work do you/she want to get paid 100% of the benefit if she goes to do something else regardless of time or income earned from that new occupation.  If you want that option to be paid 100% then take that HH757 rider, if you don’t mind the contract going to the mathematical equation of % of income lost is the % of benefit to be paid then don’t take it, assuming residual is included in the optional features.  I would have a tendency to agree with you on most of the primary specialties (IM, Family, Peds, Psy, etc.) in terms of some over buy a disability policy some are oversold a disability policy.  Be sure to check for unisex rates on her!

    S. Scott Nelson-Archer, CLU, ChFC with M. D. Financial Services, Inc.
    Direct Phone 713-966-3932, Email [email protected]

    #214241 Reply

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