Life Insurance Blog

Any-occupation life or occupational insurance covers a person if they cannot work under any circumstances, in any occupation, following an accident, injury, or disability. The insurance is intended to provide an income until retirement for the policy holder.

Disability and occupational insurance can be added onto life insurance or it can be provided separately. It is usually cheaper for a policy holder to purchase all the insurance from one provider, as the administrative costs tend to be lower and there are other costs, such as getting a medical examination, that won’t need to be duplicated and which can be split between the two elements. This is quite unusual with insurance companies, which often reward a person for purchasing the “best of breed,” and it can sometimes be worthwhile for a person, particularly the relatively young who are unlikely to need a medical examination, to check if the insurance will in fact save them any money if purchased separately.

There are two other types of disability insurance. The first pays out if the person cannot work in the same occupation. This variety tends to be very expensive, although it will pay out relatively easily. The second type pays out if the person cannot work at the same level, and this will usually cover at least some of the difference between the old and new salaries, or pay out if the person cannot work at all.

The any-occupation insurance tends to be relatively cheap compared to other forms of disability insurance, but it can be quite hard to establish a claim, as the policy holder must demonstrate he or she doesn’t have a realistic chance of working in any other field, even one requiring a considerably lower skill set.

This type of insurance can provide a person with considerable peace of mind, as it’s also likely to help with the medical costs which are likely in these circumstances.

As with life insurance the premiums will vary according to the occupation, age, and previous health record of the policy holder.