Own Income Protection

What Does Own Income Protection Mean?

Own income protection is a type of disability insurance that provides disability benefits if the policyholder is unable to perform their regular occupation due to a disability.

This differs from general income protection, which offers benefits if the disability prevents the insured from performing any occupation, not just their own. Because the policy pays out based on the policyholder’s specific job rather than any work they could conceivably do, own occupation coverage is usually the more expensive option you’ll find when shopping for disability insurance.

Insuranceopedia Explains Own Income Protection

The distinction between own income and any income protection is crucial for disability insurance policies. Which type is included in the policy determines when benefits are activated and when they are withheld.

Own income protection is the more comprehensive of the two types of coverage. It provides benefits even if the insured can still find some form of employment, covering less severe disabilities. Additionally, it alleviates the uncertainty and challenges associated with finding a new line of work that accommodates the insured’s newly acquired disability. This kind of protection is especially relevant for professionals whose income depends on specialized skills, since a partial disability could end their career even if they remain capable of other work. Coverage also gets more complicated when applying for life insurance for people with disabilities, so it helps to think through both at the same time.