The Legal Definition of Total Disability

The courts and the insurance companies do not have the same definition for a total disability. In fact, not all insurance companies link the same set of characteristics to a situation where a policy holder has become totally disabled.

How the court system defines total disability?

According to the courts, a reasonable man would be classified as totally disabled if he could not engage in a certain activity, even though he does not have a physical disability.

A second definition focuses on the decisions made by an injured policy holder. If common sense and prudence have pushed that same policy holder to terminate a business or an occupation, then the policy holder’s status would change to that of someone who has become totally disabled.

How insurance companies define total disability?

Generally, a totally disabled policy holder lacks the ability to perform the regular duties of his or her job. Insurance companies place a stipulation on that definition. The policy holder’s status can be terminated, if that injured but insured person fails to go after a proper level of care from a qualified physician.

Types of policies for consumers that have become totally disabled:

The most expensive policy carries this description: own occupation. That means that the policy holder is unable to perform the jobs associated with his or her most recent occupation.

The most common policy carries this description: regular occupation. That means that the policy holder is unable to perform the jobs that match his or her skills and education level. While the least expensive policy bears this descriptive phrase: any occupation. It provides benefits to someone that is unable to perform as a money-earner in any occupation.

Some consumers elect to buy a policy that bears this description: reasonable occupation. It covers those who are unable to perform in any occupation where they might reasonably become qualified.

Personal Injury Lawyer in Lindsay know of one type of policy warns of future changes. Those changes might surprise the policy holder, if he or she has not studied the policy’s provisions. This particular policy offers coverage to those content with one of the limited regular occupation policies. It offers coverage for 24 months to someone with the status of regular occupation. After that 2-year interval, it changes to the terms of an any occupation policy.

The final type of policy makes no reference to the policy holder’s occupation. It carries this title: Loss of income. The benefits delivered to those that hold one of the loss of income policies are based on the amount of income lost, due to the disability. If the policy holder’s condition forces him or her to put in a workday with fewer hours, then the insurance company steps-in and covers that financial loss.