What is Total Disability?

The definition of total disability differs from the outlined parameters in the policy taken out. Generally, total disability refers to the inability to perform the regular functions of your job.

However, the definition of total disability contained in your insurance policy may affect your benefit entitlements if you can perform the functions of another job other than the job you were doing at the time of illness or injury.

For total disability, some policies will stipulate that you are unable to complete the function of your job. Other policies will stipulate that you are unable to perform other work even outside of the field of expertise to receive total disability benefits.

Normally, all insurance policies require that you seek appropriate care from a qualified medical professional to receive total disability benefits.

There are six common definitions of total disability:

Own Occupation

This definition of total disability requires that, directly because of injury or illness, you are unable to perform the important duties of your occupation. Own occupation looks at your ability to perform your specific job duties. Being able to perform other tasks does not disqualify you from receiving benefits.

This is the most generous definition of total disability. Policies that define total disability in terms of own occupation are also the most expensive. They tend be available only to individuals at the top of their occupational field such as CEOs or specialized surgeons.

Regular Occupation

This definition of total disability is the most commonly used in insurance policies. The definition is quite similar to the own occupation definition, but it’s broader in the types of employment you can pursue.

The inability to perform the specific tasks of your occupation alone doesn’t qualify you to receive total disability insurance benefits. However, you are not expected to take on other employment that’s unsuited for your skill or education level.

For example, an injured electrician is not required to take a job as a cashier but will be required to find other employment as an electrician in another less demanding sector in that industry.

Any Occupation

Any occupation definition of total disability is the least liberal and least expensive. You must be unable to work in gainful employment in any occupation you are qualified for based upon your training, education, and experience.

Reasonable Occupation

The definition of total disability is similar but more liberal than that of any occupation definition. The specifics of the definition include any occupation for which you are reasonably qualified through education, training, and experience.

Limited Regular Occupation

Limited regular occupation protects you based on the definition of total disability in regular occupation 24 months after injury or illness. Your coverage will change to any occupation definition of total disability after lapsing of the 24 months.

Loss of Income

The definition of total disability under the loss of income coverage is not based on your ability to perform a job. Benefits are paid depending on the loss of income due to illness or injury. You receive the full benefit following a total inability to work and earn an income. The coverage supplements lost income if you are unable to work to the same degree as before.

What is Total Disability?