Own Occupation: benefits paid if you’re unable to perform you'r occupation’s duties .

• more comprehensive coverage tailored to your specific job duties & skills

• Typically more expensive due to the broader coverage it offers.

• provides more peace of mind for specialized or high-skilled professions.

• Benefits are paid even if you can work in another occupation, as long as you can not perform your own job.

Any Occupation: benefits if you're unable to work in any occupation for which you're reasonably suited by education, training, or experience.

• More strict eligibility criteria, tends to be less expensive than own occupation

• May lead to disputes over whether you're capable of performing other work

• May not adequately protect individuals with highly specialized skills

• Benefits cease if you can perform any other job, even if it's significantly different from your previous occupation.

Elimination & Benefit Period

• Elimination: waiting time before benefits being

• Benefit: duration of disability benefits

Total, Residual, and Partial Disability Coverage

*Residual & Partial are similar, but differ in a few ways

• Total: total disability occurs in the event that you unable to work at all. Total disability may defined variably among different insurance companies

• Residual: benefits are paid according to the income you have lost due to your disability. You receive these benefits even if you can work part-time; the benefit would be %-based on your part-time income in relation to full-time income.

• Partial: benefits are paid an amount equal to 50% (or less) of the benefit you would earn if totally disabled. The benefit period is also typically shorter.

Increase Option: ability to increase coverage

Factors to Consider

Greatest Protection, but Higher Costs —> Total with residual disability coverage

Income Protection, Lower Cost —> Stand-alone Residual

Short-term Benefits, Lower Cost —> Stand-alone Partial

• The cheaper the policy, the longer the waiting period is, generally.

Cost of Living Rider: adjustment of benefits to inflation

Protection:

• Student Loan: specific coverage for student loans

• Catastrophic: additional coverage for severe disabilities

• Retirement: protects retirement savings during disability

Mental Nervous Benefit: coverage for mental health-related disabilities