Own Occupation vs Any Occupation: What Doctors and Dentists Should Know About Insurance Definitions
Short answer: "Own occupation" generally means a claim can be assessed against your specific job, such as operating as a surgeon or treating patients as a dentist. "Any occupation" generally means a claim is assessed against whether you could do any job suited to your education, training and experience. For doctors and dentists, whose skills are highly specialised, that difference can matter a great deal.
Why the definition matters more than the price
Two policies can look identical on a quote yet pay very differently on a claim. Take a surgeon with a hand injury who can no longer operate but could still teach or consult. Under an own-occupation definition, the question is whether they can do their own job. Under an any-occupation definition, it's whether they could do any suitable job.
The two definitions at a glance
Own occupation | Any occupation | |
What's assessed | Ability to do your specific job | Ability to do any job suited to your education, training and experience |
Can you be working elsewhere? | Depends on the policy wording | Usually, yes, being able to work in a suitable role can affect the claim |
Typically found in | Many income protection policies and some TPD policies held outside super | Many TPD policies, including those held inside super |
Cost | No big difference in premium compare to any occupation definition policy. | No big difference in premium compare to own occupation definition policy. |
Not all "own occupation" definitions are equal
Working elsewhere: some policies pay only if you aren't working at all, others allow income from a different role.
How your occupation is defined: your specialty, or a broad category like "medical practitioner".
Age changes: some policies switch to a broader definition at a certain age.
The super rule many people miss
Since 1 July 2014, new TPD cover held inside superannuation generally can't include an own-occupation definition. Cover inside super is usually limited to an "any occupation" style definition because of superannuation law.
Inside super: premiums come from your super balance, which eases cash flow, but the definition is generally narrower.
Outside super: own-occupation TPD may be available, but part of premiums come from your own cash flow.
Questions to ask when reviewing your own cover
Is my disability definition own occupation, any occupation or something else?
Does it change after a certain age?
Is my TPD held inside or outside super?
Would working in a different role affect a claim?
The takeaway
The wording of the disability definition can decide whether a claim is paid, so read the PDS before you need it.
We Educate. You Decide.
Understanding your options is the first step. To see where you stand,
This article contains general information only and does not take into account your objectives, financial situation or needs. It is not personal advice. Before acting on any information, consider whether it is appropriate for you and read the relevant Product Disclosure Statement and Target Market Determination. Insurance rules and product features change, so check current terms.
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