📰 Insights · Education

Own occupation vs work tasks: the cover detail that decides claims

Two policies can look identical on price and benefit, then pay out completely differently. The reason is buried in the definition of incapacity.

When you claim on income protection or the disability element of critical illness, the insurer applies a definition to decide whether you qualify. The strongest is 'own occupation': it pays if you cannot do your specific job, even if you could do another. For most office-based and professional roles this is the standard.

Manual and higher-risk occupations are often offered a weaker test instead — a 'work tasks' definition, which only pays if you cannot perform several basic everyday activities such as walking a short distance, climbing stairs, lifting a couple of kilograms or writing. You could be unable to lay bricks or wire a house and still fail that test, because you can technically still walk and write.

It is not that one definition is a con and the other is gold — they reflect how insurers price risk. But it does mean two quotes are rarely like-for-like, and it is exactly the kind of detail a whole-of-market broker is there to flag before you commit.

What it means for you: Always check which definition of incapacity your policy uses — it can matter more than the premium.
Note: This article is general information and industry commentary, not personal financial advice. Product features, eligibility and any tax treatment depend on your circumstances and the insurer’s terms. Life Insurance For Me is a trading style of More Than Money Ltd, authorised and regulated by the Financial Conduct Authority (FRN 1047044). See our regulatory information.

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