Income protection insurance protects your income when you’re unable to work due to an illness or injury. The truth is, there are terms and conditions that apply to your policy, and that you need to understand in order to be prepared for the worst. 

For instance, the term ‘own occupation’ vs ‘any occupation’ can mean different things for your insurance claim and how you’re protected when it comes to it. How? Income protection doesn’t just cover you if you can’t do your current job, but if you’re unable to work at all. 

Let’s imagine you’re a surgeon, and you injure your hand so you can’t perform surgery, you can still practice and teach medicine. This is where the critical difference in your insurance policy comes into action.

The Definition:

When you’re navigating your income protection insurance, there are two terms that you will come across: ‘own occupation’ and ‘any occupation’. Let’s break down what these really mean.

Any Occupation

This refers to when an individual is entirely unable to work any job that is relevant to their education, training or profession. So, referring back to the example of the surgeon above, if they were to claim on their income protection insurance, they may be declined as they are still able to carry out other tasks in their field. This is the common standard with most income protection policies, and misunderstanding the term can leave you vulnerable when you need to claim.

Own Occupation

Own occupation determines an individual unable to perform the specific responsibilities of the job they have at the time they submit the claim. So, if this is a term of your income protection insurance, and you’re a surgeon who injures their hand, you will be covered by your insurance policy to allow you a full recovery.

Who Needs Own Occupation?

If you want to allow yourself time to recover if the worst were to happen, then ‘own occupation’ may be a premium that you consider on your policy. However, it is particularly beneficial for individuals in careers such as: 

• Specialised Medical Professionals: Dentists, Surgeons, etc
• Trade or Construction: Builders or plumbers, where a physical injury wouldn’t completely impair their ability to work.

• Any High Income Profession

How Does It Work?

The truth is, ‘own occupations’ are usually subject to higher premiums, but they give you much more certainty and stability that you’re protected if you need to claim, and you can afford to recover in your own time. 

Obtaining ‘own occupation’ terms on your policy can be difficult if you’re only looking at standard income protection insurance. When you use specialised brokers like Morgan Insurance, we’ll navigate the market to secure you the best terms for your insurance policy and ensure you’re appropriately covered. 

We can spot any gaps in your coverage and negotiate better coverage before you need to claim. As brokers, we can see what you can’t. ‘Own occupations’ come at higher premiums, but we’ll secure better pricing for you, so it’s worth it if you ever need to make a claim. 

Morgan Insurance: By Your Side 

Reading the fine print can make all the difference when it’s crunch time. We don’t expect you to go it alone. At Morgan Insurance, we’re dedicated to securing you the best terms and pricing for your income protection insurance. 

The wording of your insurance policy is specific for a reason, and we’ll help you understand why. If you’re not sure about your current coverage, contact Morgan Insurance Brokers, and our team of specialists can review it for you. 

Get started today. We’re by your side. 

FAQ’s

What does ETE on my policy mean?

ETE stands for Education, Training and Experience. Under ‘any occupation’ terms, insurers may look at your CV to determine what other jobs you have the education, training or experience to do, so you may still have to work, and your claim could be rejected. 

Is ‘Own Occupation’ tax-deductible?

Generally, yes. If you hold additional policy terms, like ‘own occupation’, it is 100% tax-deductible, which makes it all the more worthwhile when you need to make a claim.

Why is there a higher premium on ‘Own Occupation’?

These terms usually come at a higher premium as they come at higher risks for insurers, that they will need to pay out if you submit a claim.