Disability Income Strategies

There are several types of disability insurance — some provided by your employer, some you purchase independently — and they all offer slightly different coverage and benefits for different situations. The two main types of disability insurance are long- and short-term policies. Both replace a portion of your monthly base salary up to a cap, such as $10,000, during disability. Some long-term policies pay for additional services, such as training to return to the workforce²¹.

The main difference between own occupation and standard disability insurance is the definition of disability. Under the Regular Occupation definition, physicians or dentists will be considered totally disabled if they’ve limited their practice to a single, recognized specialty and can’t perform that specialty. 

However, by adding the Own Occupation Rider to a policy, they’ll be able to work in another occupation or specialty and still collect benefits. Compared to “any occupation” disability plans, it’s easier to get disability insurance benefits under an own occupation plan since you only have to show that you’re unable to perform the substantial duties of your specific occupation. You also may be able to perform simpler or lighter work and still get the benefits you need12.

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(1) Types of Disability Insurance - Policygenius. https://www.policygenius.com/disability-insurance/types-of-disability-insurance/.

(2) Disability Insurance: Why You Need It - NerdWallet. https://www.nerdwallet.com/article/insurance/disability-insurance-explained.

(3) What is disability insurance? – USA TODAY Blueprint. https://www.usatoday.com/money/blueprint/health-insurance/disability-insurance/.

(4) Disability Benefits | SSA. https://www.ssa.gov/benefits/disability/.

(5) SSDI and SSI benefits for people with disabilities | USAGov. https://www.usa.gov/social-security-disability.