Own Occupation Disability Insurance- Do you Need it?
Posted on January 14th, 2012
Before I share my thoughts about own occupation disability insurance, I thought I should give you definitions of True Own Occupation and Modified Own Occupation, as they arent always clearly identified.
True Own Occupation: Due to injury or illness, you cannot perform the material and substantial duties of your Occupation. You will be considered totally disabled even if you are gainfully employed in another occupation, provided that, due to injury or illness, you are not able to work in your own occupation.
Modified Own Occupation: Due to injury or illness, you cannot perform the material and substantial duties of your Occupation and you are not gainfully employed.
So, the difference in language is easy to see the main difference between the two is that in the True Own Occupation definition, you can work in another occupation and will still receive your full benefits (as long as you cant work in your occupation), whereas in the Modified Own Occupation definition, you will no longer receive your benefit for total disability if you go to work in another occupation.
I have to add that, if you have a Residual benefit in your policy, you might be eligible to receive a partial benefit if you are disabled per the policy language and you choose to work in another occupation. If you choose to work in another occupation and you have a loss of income of at least 20% (or 15%, depending on the policy), you could receive a percentage of your benefit based on your percentage of income loss.
Which Definition is Right for you?
When looking at both modified and own occupation disability insurance, I ask my clients, if, due to illness or injury, you cant work at your occupation, could you potentially work in another occupation (remember, this would be your choice not the insurance companys)? Many times, the answer comes quickly. A good example would be a surgeon with a hand injury. Clearly (unless robotics are involved), if a surgeon has a hand injury, he wouldnt be able to perform surgery, but might want to work in general practice or teach or do something else entirely. This person would be better suited to a True Own Occupation definition of disability.
However, take an Executive who works mostly at a desk. If she couldnt perform the duties of an Executive, the answer to the above question is most often No. In cases like this, especially if there are budgetary concerns, I would recommend the Modified Own Occupation definition (it is less expensive).
You will hear many arguments in the industry as to which definition serves the policy holder better. I cant argue with someone who tells me that the true own occupation definition is better than the modified definition because I would agree that a richer benefit is better than one that has restrictions on it. However, the question I ask that person is, If a benefit is better (and more expensive) but the person doesnt need it, is still a better benefit?
The bottom line is, benefits in a disability insurance policy should be tailor-made for each client and their particular needs. There are a lot of moving parts and cost factors to consider, so make sure you work with an agent/broker who works with several companies and understands this tailor-made concept. You will probably wind up with the policy and premium that fits your needs.
Tags: Disability Insurance, Insurance, Occupation Disability, Occupation Disability Insurance
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All that you need to know about Health Insurance Portability
Posted on November 11th, 2011
Health insurance portability is the right given to a health insurance policyholder to switch from one insurance company to another or from one plan to another. In the process of switching, the credit gained by the insured member for pre-existing diseases and time bound exclusions, no claim bonus etc also gets transferred.
Let us understand this with the help of an example: Kapil has a health insurance policy with ‘A’ company. His Sum Insured is Rs 4 lakhs and has Rs 50,000 as accrued bonus. When he shifts to the new insurance company ‘B’, this company has to offer Kapil a Sum Insured of Rs 4.5 lakhs. In case
Tags: Health Insurance, Health Insurance Portability, Insurance, Insurance Portability
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Insurance Advances, Are You Aware of What Could Be Offered To You?
Posted on November 8th, 2011
Newest Technologies for Insurance Agencies
The United States has a great reputation for always evolving and changing the procedures on how we do our day to day activities. Insurance is no different in following along with our nation known strength. Here are some of the advances that are taking place amongst insurance today:
- One-touch emergency response
- Roadside assistance
- Stolen vehicle location assistance
- Vehicle diagnostic alerts and maintenance reminders
- Family-friendly features like location services and speed alerts
These highly innovated technologies are just a toe on the foot; wedged in the door for the future technologies that agencies will be changing.
Top tenant referencing firm recommends rent guarantee insurance
Posted on October 31st, 2011
If you rent out property to tenants, your specialist landlords insurance will certainly include buildings cover. It might also include contents, accidental damage and alternative accommodation for tenants, should they need to move out of your property while you’re doing necessary repairs.
However, there is another type of landlords insurance cover which is an absolute necessity in today’s economic climate, according to Landlord Assist, a leading UK tenant eviction and referencing company.
The type of insurance they’re referring to is rent guarantee insurance, which covers you if your tenants default on their rent, both for the rent and any legal expenses should you need to take them to court.
Insurance Insight with Jeffrey Greenwald
Posted on October 10th, 2011
I recently took a trip to Florida with my family for a little vacation. While in the lobby of my hotel I came across a young gentleman that was registering for a Insurance seminar. I happened to mention to him that I am an owner of a Insurance Agency In Nebraska. He promptly asked me if I can give him some insights and answers to some important questions that he had regarding the insurance industry these days. Now I have sat down with hundreds of people over my 25year carrier, but for some reason this conversation took somewhat of an interview feel to it.
He started by asking me how I came into Insurance;
I told him that I started working for INSPRO Insurance
around 1980.
Inspro Insurance and You
Posted on August 28th, 2011
INSPRO Insurance goes back to the mid 1930s. The strength of our firm comes from the merging of many strong insurance organizations and their professional staff members. The following is a list of insurance agencies which we have evolved.
INSPRO Insurance is an independent, multi-line insurance agency representing many companies. We are 100% employee owned and have been serving clients for over 50 years, providing professional and risk management services. We offer a complete line of insurance products and services.
Commercial Insurance Employee Benefits
Personal Insurance Financial Services
We provide value to our clients by being problem solvers. To achiev
Tags: Insurance
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