I hear my colleagues talking about "own occupation" disability coverage, what does that really mean?
"Own occupation" is the basis used in defining disability coverage under the Income Protection and Office Overhead Expense Plans. TRUE "own occupation" definition of disability—the most generous definition there is—pays you full benefits if you're disabled and can't work in your special area of dentistry, even if you're able to practice other types of dentistry or choose to work in another profession. (Not all insurance companies offer this.) For example, if you are a practicing dentist performing clinical dentistry, then your occupation is the clinical practice of either general dentistry or one of the specialized areas of dental practice approved by the ADA, such as orthodontics or oral surgery.
By contrast, "any occupation" disability coverage does not consider you disabled if you are still capable of performing the duties of any occupation for which you are reasonably suited, such as teaching, consulting, sales, or administration. If you purchase "any occupation" coverage, you may not receive any cash benefits from another occupation even though you cannot physically tolerate the rigors of active dental practice.
Both ADA-sponsored disability insurance plans, the Disability Income Protection Plan and the Office Overhead Expense Plan, automatically include own occupation coverage for all participants.
In fact, under the Disability Income Protection Plan, you can receive full own occupation benefits up to age 67, regardless of your age at time of disability, and regardless of any other income you choose to earn while disabled from dentistry. (Other policies may offer own occupation coverage for two or five years at most; then "any occupation" definition usually replaces own occupation, which determines your eligibility to continue receiving benefits. Still other policies may offset, or reduce, the dollar amount of benefits you receive as a result of income you earn from other sources, like teaching or consulting.)
If you're shopping around for the best disability insurance, consider the impact that an own occupation definition could have on your potential to receive benefits. If your family's standard of living relies on your ability to earn income as a dentist, you may decide that it's well worth purchasing the most generous own occupation coverage available.