Life & Health Insurance Practice Exam 2025 – Your All-in-One Guide to Exam Success!

In many disability insurance policies, the definition of disability can indeed change after a specified period, often 24 months. At the outset, many policies define disability in terms of the individual's inability to perform the duties of their "own occupation." This means that if the insured cannot perform their specific job due to a disability, they will be eligible for benefits.

However, after 24 months, the definition is often modified to "any occupation" standard. This means that the insured must demonstrate the inability to perform any job for which they are reasonably suited based on their education, training, and experience. This shift reflects a common practice in the insurance industry, as insurers aim to reduce their liability by ensuring that benefits are only paid if the claimant cannot work in any capacity.

This change in definition allows insurers to limit their exposure and encourages claimants to either return to work in a different capacity or seek rehabilitation to re-enter the workforce. The inclusion of a liberalized definition or additional conditions may not typically occur in most standard disability policies after 24 months, which is why the focus on "any occupation" is significant in understanding these policies.