What Does Own-Occupation Policy Mean?

It is an insurance contract type providing the insured with coverage should they become disabled and/or unable to carry out the present occupational tasks and functions. As the individual was trained to learn these tasks and was paid for these trainings, this policy is essential for people not to suffer from the financial point of view. Own-occupation insurance contracts are conditioned by the individual’s employment at that time when the disability happens.

The contract is also called the ‘pure own-occupational policy’.

Own-Occupation Policy Explained

Remember that if one is not working when disablement occurs, he or she is not able to ask for financial protection in the name of an own-occupation contract. However, there exists such a modified policy which allows help in these situations as well. Modified policy means that the person still benefits from the coverage even if he or she was not working when his or her disablement occurred.

Another specification should be made, namely, that this policy is usually used to protect professional or expert people, for instance surgeons.

Another thing to be mentioned is that if the person getting benefit payments finds a new job, payments will not be stopped.