Michael, a 45-year-old self-employed consultant, is evaluating disability insurance policies. He currently earns $120,000 per year. One policy defines disability as not being able to perform the 'material and substantial duties of his own occupation.' Another defines it as not being able to perform 'any occupation' for which he is reasonably suited by education, training, or experience. Which definition is more favorable for Michael and why?

Question: Michael, a 45-year-old self-employed consultant, is evaluating disability insurance policies. He currently earns $120,000 per year. One policy defines disability as not being able to perform the 'material and substantial duties of his own occupation.' Another defines it as not being able to perform 'any occupation' for which he is reasonably suited by education, training, or experience. Which definition is more favorable for Michael and why?

Answer options:

• A. 'Any occupation' because it provides broader coverage. ✅ B. 'Own occupation' because it provides coverage even if he can work in a different field.
• C. 'Own occupation' because it is generally less expensive.
• D. 'Any occupation' because it pays benefits for a longer duration.

Correct answer: B. 'Own occupation' because it provides coverage even if he can work in a different field.

Explanation: An 'own occupation' definition is more favourable for a highly specialized professional like Michael because it allows him to receive benefits if he cannot perform the duties of his specific current job, even if he could perform a different, less specialized or lower-paying job. The 'any occupation' definition is much stricter and harder to claim against.