According to the US Department of Labor, the average person changes careers 5 times during their lifetime. So what happens to your disability policy when you change occupations or medical specialties?
Your individual disability policy is based on where you were at the time of application. This includes your age, occupation, health status, state of residence, income and if you had any other disability coverage in force at the time.
However, your claim covers you where you are at the time of claim. For example, if you were to purchase your disability policy as a medical student without a declared medical specialty, you would receive your policy in the most favorable occupational class for physicians. You would be paying the non surgical rates. Assume you go on and do a residency in orthopedic surgery. You do not need to change your policy. If you have an own occupation policy, your policy would pay you your benefit if you ould no longer practice as an orthopedic surgeon, even if you could work as an internist.
Another example is someone who purchased a policy while practicing as an attorney. They later decide to switch careers and open up a restaurant. With an own occupation policy, if they become sick or injured and can’t run the restaurant, the policy would pay benefits, even if they can go back and practice law.
If you are considering changing careers or medical specialties, it may make sense to evaluate your disability insurance to ensure you have the optimum coverage.
For more information, please contact Set for Life Insurance today!
