why an own-occupation rider is essential for your disability insurance

when it comes to your disability insurance, one small add-on called an “own-occupation rider” can potentially make a significant difference

by nainesh kotak

published jun 19, 2024

last updated jun 20, 2024

3 minute read

join the conversation

3 minute read

join the conversation

with an own-occupation rider, the definition of disability is tied specifically to your own profession. getty images

have you read every page of your disability insurance policy? too few people do, as understanding the intricacies of your insurance policy can feel like trying to decode an alien language. however, when it comes to your disability insurance, one small add-on called an “own-occupation rider” can potentially make a significant difference — especially if you are a trained professional in your career field.

an own-occupation rider is an additional feature you can include in your disability insurance policy. while this rider is generally only available for individual policies, it may be an optional add-on for individuals part of a group policy. it changes the criteria for what is considered a total disability. most policies stipulate that after a certain period, often two years, you’re considered disabled if you can’t perform the duties of any occupation that suits your education, training and experience.

however, with an own-occupation rider, the definition of disability is tied specifically to your own profession. if you’re unable to perform the essential duties of your job due to disability, you’re eligible for benefits, even if you could potentially do another job.

doctors, lawyers and other professionals commonly purchase own-occupation features in their policies, but these are not the only careers that benefit from this type of insurance. architects, chefs and even administrative assistants may be able to add own-occupation riders to their insurance.

if you’re wondering about cost, yes, your monthly premium would increase, but consider it an investment in your future. it provides a more robust financial safety net, ensuring you can maintain your lifestyle and meet financial obligations if you’re unable to perform the job you’re trained for.

the own-occupation rider isn’t just beneficial in the short term. it significantly impacts the length of time you can receive benefits. without this rider, you would only receive benefits as long as you meet the standard disability test. but with the own-occupation rider, as long as you remain disabled from performing your specific job, you could receive benefits until your policy ends, typically at age 65.

here’s an often used scenario to explain the benefits. you’re a surgeon who suffers an accident that limits your hand mobility. despite this, you could still teach, consult, or perform a variety of other jobs. without the own-occupation rider, your insurance company could argue that you’re not totally disabled and deny your claim.

with an own-occupation rider, however, the focus is solely on your capacity to perform your trained profession — in this case, surgery. if you can’t do that, you’re considered totally disabled and entitled to benefits, regardless of your ability to perform other jobs.

so if you decide the own-occupation rider is something you wish to have to provide the best protection in the event of a disability, the first thing to do is read your policy over carefully. familiarize yourself with the terms of your policy, especially the definition of total disability. find out if you have own-occupation coverage, or if your policy or insurance provider offers an opportunity to upgrade or add that feature.

not every insurance company offers an own-occupation rider and not every profession would qualify. if you want to make an informed decision, specialty disability lawyers can offer help and guidance concerning an own-occupation add-on to your disability insurance.

nainesh kotak, is the founder of kotak personal injury law, a firm focusing on protecting their client’s rights to justice and obtaining the compensation their clients deserve. he also serves as the chair of the long-term disability section of the ontario trial lawyers’ association.