Own occupation insurance, also known as own occupation disability insurance, is a specific type of disability insurance that can be particularly important for medical professionals. This type of insurance can provide benefits if you are unable to perform the specific duties of your occupation due to a disability, rather than being limited to a general definition of disability (typically meaning you cannot work at all)
The history of own occupation insurance for medical professionals can be traced back to the early 20th century, when the first policies were introduced for physicians.* These policies were designed to provide financial support for physicians who were unable to work due to a disability, and were intended to protect their income and their ability to continue practicing their profession.
As the field of medicine progressed, the definition of own occupation evolved to include a broader range of medical professionals, such as dentists, nurses, and other healthcare practitioners. Additionally, as the definition of disability expanded to include mental and emotional impairments, own occupation insurance policies began to include coverage for these types of disabilities as well.
Own occupation insurance has also evolved to include more specialized coverage options, such as residual and partial disability coverage. Residual coverage can provide benefits if you are unable to perform some, but not all, of the duties of your occupation, while partial coverage can provide benefits if you are able to work in a different occupation.
In my experience, own occupation insurance for medical professionals has become increasingly important due to the high cost of medical education and the significant income that many medical professionals earn. Meeting with Nurse Practitioners, Physician Assistant and Doctors I have seen debt run anywhere from $132,000-$264,000 which can take a bite out of future planning for sure. Own occupation insurance can provide financial security in the event of a disability, and help you to maintain your standard of living and continue practicing in another area of your profession, for example lecturing.
With the high cost of medical education and the significant income that many aesthetic professionals earn, own occupation insurance is becoming increasingly important to protect your income.