Understanding occupation definitions and how they affect your claim
Some income protection policies apply different occupation definitions over time, often changing after the first two years of a claim. While this can reduce premiums, it's critical to understand how it may affect your eligibility to continue receiving benefits.
The two main occupation definitions used in income protection are:
- Any occupation
- Own occupation
📋 What Is an Occupation Definition?
An occupation definition sets out how your ability to work is assessed if you become ill or injured. It answers:
Are you unable to work in your own job - or any job you're reasonably suited to?
Compare Occupation Definitions
Any Occupation
Under an any occupation definition, you're generally considered disabled only if you're unable to work in any occupation you are reasonably suited to by education, training, or experience.
This means the assessment is not limited to your current role.
How claims are assessed
- Your previous work experience and qualifications
- Skills that could reasonably transfer to another role
- Medical evidence of your functional capacity
- Whether alternative work would be reasonable for your background
Key characteristics
- Narrower claim definition
- Generally lower premiums
- Focuses on overall work capacity
Own Occupation
Under an own occupation definition, you're generally considered disabled if you're unable to perform the duties of your usual occupation — even if you could work in another role.
How claims are assessed
- The duties and requirements of your specific job
- Medical evidence confirming you can't perform those duties
- Whether your condition meets the policy's disability definition
Key characteristics
- Broader claim eligibility
- Typically higher premiums
- Often preferred for specialised or physical roles
Why insurers use different occupation definitions
Insurers commonly apply an any occupation definition because it:
- Reflects that most claims resolve within the first two years
- Encourages rehabilitation or return to suitable work where possible
- Helps balance affordability with meaningful short-term protection
Some policies combine both definitions — using own occupation early in a claim and switching to any occupation after a set period, usually 2 years.
⚠️ What to Be Aware Of
If your policy changes from own occupation to any occupation after a period on claim:
- Ongoing benefits eligibility may change
- Long-term claims may face stricter assessment
- The definition of “reasonably suited” becomes critical
This structure can suit people who want strong early protection without the cost of permanent own occupation cover, but it requires careful consideration.
📊 Any vs Own Occupation - At a Glance
| Feature | Any Occupation | Own Occupation |
|---|---|---|
| Claim definition | Any suitable job | Your specific job |
| Claim flexibility | More restrictive | More generous |
| Premium cost | Generally lower | Generally higher |
| Best suited to | Transferable skills | Specialised roles |
| Long-term certainty | Lower | Higher |
🤔 Which definition might suit you?
Any Occupation may suit you if:
- 💰 Cost is a priority
- 🔁 Your skills transfer easily between roles
- ⚖️ You’re comfortable with a stricter claim test
Typically lower premiums with more restrictive eligibility.
Own Occupation may suit you if:
- 🧠 Your role is specialised or technical
- 🏗️ Your income depends on specific duties
- 🛡️ You want greater certainty at claim time
Higher premiums but broader claim protection.
Frequently Asked Questions
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