Own-Occupation Policy

An own-occupation policy is a type of life insurance policy that provides coverage for the policyholder's income in the event of their death or disability. This type of policy is designed to replace the policyholder's income so that their dependents can continue to pay their bills and maintain their standard of living.

Own-occupation policies are often used by people who are self-employed or who have a high income. They can also be used by people who have a large mortgage or other debt.

There are two main types of own-occupation policies:

• Scheduled benefit policies: These policies pay a fixed amount of money in the event of the policyholder's death or disability. The amount of money that is paid is based on the policyholder's age, health, and occupation.
• Residual benefit policies: These policies pay a percentage of the policyholder's income in the event of their death or disability. The percentage of income that is paid is based on the policyholder's age, health, and occupation.

Own-occupation policies can be a valuable way to protect your family's financial security. However, it is important to compare different policies before you buy one to make sure that you get the best coverage for your needs.

Here are some of the benefits of owning an own-occupation policy:

• It can provide peace of mind knowing that your family will be financially secure if you die or become disabled.
• It can help you to replace your income so that you can continue to pay your bills and maintain your standard of living.
• It can be used to pay off your mortgage or other debt.
• It can be used to provide for your children's education.

Here are some of the things to consider when choosing an own-occupation policy:

• The type of policy: Scheduled benefit policies or residual benefit policies?
• The amount of coverage: How much money do you need to replace your income?
• The length of coverage: How long do you want the policy to last?
• The cost of the policy: How much will the policy cost each month?

If you are considering buying an own-occupation policy, it is important to talk to a financial advisor to make sure that you get the right coverage for your needs.