What is the fundamental difference between own occupation and any occupation in insurance policies?

The fundamental difference between own occupation and any occupation in insurance policies is that own occupation coverage provides benefits if the insured is unable to perform their specific job duties, regardless of their ability to work in other capacities. This means that if someone is a surgeon and they can no longer perform surgeries but can work in a different role, they would still receive benefits under an own occupation policy.

In contrast, any occupation coverage typically stipulates that benefits are only paid out if the insured is unable to work in any capacity. Therefore, if a person can perform an alternative job or role, even if it differs from their previous specific occupation, they would not qualify for benefits under an any occupation policy.

This distinction is crucial for individuals, particularly those with specialized skills, as owning a policy that aligns with their potential inability to perform their job can significantly impact their financial protection and peace of mind.