Question

Lindsay was a lawyer and only 28 years old when she had a snowboarding accident. She was paralyzed, and it took more than nine months of hospitalization and two years of intensive physiotherapy for her to resume her life. She was unable to work and had no one to support her. “I had a good private disability insurance plan covering “own occupation” as those regular monthly payments allowed me to concentrate on my rehabilitation and to live my life without worrying about where the money was coming from for daily living expenses. That made a big difference to me and my recovery in returning back to my law practice.” What type of plan did Lindsay have?

Disability insurance covering the inability to perform the duties of any job.

Worker’s Compensation insurance that provides insurance coverage while away from work.

Disability insurance covering the inability to work at her regular job.

Critical illness insurance coverage that provides a lump-sum benefit.

Permanent insurance coverage that provides insurance for as long as the premiums are paid.

Answer 1

From the scenerio we can understand that the type of plan Lindsay had was a 'Disability insurance covering the inability to work at her regular job'.

This can also be termed as regular occupation disabililty insurance. This policy covers those individuals who during their course of regular work meet with some accident and end up in a situation where they are unable to perform the work that they had done till then. It is necessary that the individual was employed at the time the accident took place, then only will they be eligible for the own occupation disability insurance. Also the individual must be in a state to be able to perform some kind of work even if not the one performed earlier, but not be in a siatuation where he/she cannot perform any work at all for this insurance to get approved.

Own occupation is also one of those disability insurance that has a higher chance of claims getting approved by the insurance company.

Hope this answers the question. If you liked the answer please give an up vote. It would be highly encouraging for me. Thank You