What Is An Occupation Class For Disability Insurance? By R Reich At Isnare.com Ezine Articles

When you're researching Disability Insurance one of the areas you run into is something called the "occupational class". Insurance of all types is based on an estimate of the financial risk to the insurance company. Based on that data a premium (payment) is calculated.

The factors that go into determining a rate for disability insurance include, among others, one's health history, age and occupation.

Based on historical claims records, some occupations have lower claims experience than others. Logically, those occupations with lower claims would be assigned an insurance rate in a less expensive "occupational class" and thus would be charged less for someone at the same age with an occupation that has more likelihood of claim payment.

To take an obvious example, it stands to reason that a worker at a fireworks plant has more likelihood of disability than a CPA. This is an extreme example and it gets very fine tuned. Even an M.D. who is in family practice may have a different occupation class for physician disability insurance than a general surgeon - all based on the industry and that insurance company's claims experience with the occupation and specialty.

Part of what we do at ProtectYourIncome is sort through this complex set of facts to make sure you get the right company, at the right rate in the right occupational class. Some companies have better rates for different occupations and different specialties within an occupation. We know who they are and who fits you.

With all the disability insurance policies we have set up for clients we're very up on which disability companies will be right in each set of circumstances. We hope we'll have the opportunity to help you with this decision.

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