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Transitional Own Occupation Definition

Recently introduced, on a more limited basis, is the Transitional Own Occupation Definition. This is a variation of the True Own Occupation Definition. Transitional Own Occupation will pay benefits if you are totally disabled in your occupation but are readily employed in another, provided your monthly earnings do not exceed or match the earnings from your former occupation. The benefit amount paid is based on the relationship of earnings to insurance. This definition will take you up to, but not over, what you were making before. Think of it as True Own Occupation with a cap. For example: A dentist makes $8,000 per month, becomes disabled and takes a job as a consultant that pays him $6,500 per month. The benefits payable under the Transitional Own Occupation definition would be $1,500 per month. This would take dentist to his former level of $8,000 per month combining insurance and earnings. This definition also coordinates with benefits from any other source, including group or individual disability coverage, and depending on the carrier, Social Security benefits as well. Currently only two carriers offer this definition to the mid and higher occupational classes, and it is not available in all states. However, other carriers are expected to follow, as this definition presents a more affordable alternative to True Own Occupation and can be offered to a wider range of classes. See the Sales & Marketing Ideas file in Broker Resources.


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