What defines being unable to work?
When setting up an income protection plan it is important to know what occupation cover is being provided and what definition of 'unable to work' is being used by the insurer.
This can be divided into three main categories:
- Own Occupation - Unable to do your own job
- Suited Occupation - Unable to do your own job or a similar one for which you are qualified
- Any Occupation - Unable to do any kind of paid work
The best option to go for here is 'own occupation' as this means that subject to a valid claim your inability to carry out your normal day to day job triggers payment.
'Suited Occupation' means that you need to be prepared to accept the fact that even if you had a valid claim, if it is possible for you to continue to work in some way in a job that you have relevant skills and experience in place for, the insurer may not pay any benefits. Therefore you may have to take on a less pleasant job if you became unable to do your current job.
'Any Occupation' means that you have to be physically unable to do any job before you will receive benefits form your plan and whilst this can often be the cheapest option, you run the risk of paying for a plan that, even if you find yourself suffering with a long term sickness or disability, may never pay the benefits that you had hoped it was going to.
If you're concerned about being unable to continue in your current job in the event of a long term accident or illness, you can find out more about how to provide yourself with the peace of mind you are looking for by using our exclusive online financial research tool, the Finance Navigator.
By asking you targeted questions it will help you to find out more about the solutions available for meeting your needs, allowing you to consider what to look at in more depth.
