Individual Disability Insurance Policies
Individual policies fall into two categories: “general” and “occupational.” A general disability policy insures against sickness or injury that precludes the insured from performing all work, while an occupational policy provides relief if the insured cannot perform the material and substantial duties of his or her own occupation. Thus, an occupational policy will provide greater coverage to the insured, who will be entitled to benefits even if he or she is able to engage in another occupation. Individual policies usually provide coverage in set amounts, (e.g., $5,000 per month) rather than as a percentage of the insured’s salary.
Click here for more information about different provisions that can be included in individual disability insurance policies.