Definitions of incapacity - what are they?

Income protection is one of the more comprehensive forms of insurance you can get, but there is some confusing jargon to get through first!

Incapacity can be defined as ‘the physical or mental incapability to do something or manage one’s affairs’. However, when it comes to income protection, there is more than one definition – let us explain…

When applying for any life insurance policy, our trained advisers at Caspian Insurance will guide you through a health and lifestyle questionnaire in order to get offers of cover possible from a range of market leading providers. For income protection, you may hear phrases such as Own Occupation, Suited Occupation or Activities of Daily Living. Our professional advisers will make each of these clear and provide the best advice possible for you, but let’s break these down.

Own Occupation

This is the most comprehensive definition of income protection, as it pays out your claim if you are unable to perform the duties of your own occupation.

If a provider offers this definition; no matter what your profession is, and you are then signed off work by a doctor; then you could be eligible to make a claim.

Suited Occupation

This is a less comprehensive level of cover than an Own Occupation definition.

If a provider offers this definition, they may not pay out a claim if you are able to perform the duties of another occupation that is suited to your experience, training, and qualifications. This is because you may still be able to work, even if it’s not in your current role.

However, they would never expect a teacher to retrain as an accountant; they would only require an appropriate occupation, suited to your skillset and experience.

Activities of Daily Living

Activities of Daily Living, sometimes referred to as Work Tasks, will pay out depending on a list of certain tasks, rather than your specific occupation circumstances.

These include examples such as walking, lifting, seeing or climbing and will commonly pay out if a number of these, depending on your policy, cannot be completed.

How do you know which occupation definition applies to you?

This is why our tailored and specialist advice is a necessity when looking into financial protection. We can help you understand which definition applies to you and your circumstances and guide you through the process. Our team of advisers have specialist training in income protection and life insurance, plus years of hands-on experience helping customers with their policies.

Life Insurance providers offer these definitions based on several factors, taking into account your occupation, age, health and lifestyle disclosures and more. This means that the best advice for one person, may not be the best advice for another.

For an estimate on how much your income protection policy could be, click here to try our easy-to-use income protection calculator and see how little you could be paying in just 30 seconds!