Income protection insurance policies by Aviva will now offer more focused cover for highly skilled workers, providing a clearer and narrower definition of events which qualify for a payout.
Highly skilled medical and other professionals may now choose to buy income protection cover for losing the ability to do their “own occupation”, rather than being covered only for the eventuality of losing their ability to do a “suited occupation”.
“Suited occupation” cover in income protection insurance meant that a surgeon who injures a finger or hand, affecting or ending their ability to operate, would not receive a payout, as they would still be able to work in a related (‘suited’) occupation, such as a surgical consultant.
Now, Aviva can provide the surgeon with ‘own occupation’ cover, so that the income protection policy would pay out for the loss of the ability to perform operations.
“Own occupation” cover is up to 70% more expensive than the broader “suited occupation” cover, as losing the ability to perform all suited occupations would require much more extensive injuries or illness, and thus be less likely, than simply losing the ability to perform operations.
The principle behind the move has implications for holders of income protection insurance and also critical illness insurance in many professions, as it gives greater freedom to ensure a payout if you are forced to give up the profession you have trained for.
This provides considerably more reliable income payment protection insurance cover (IPPI) for all professions. In the past, for example, a professional lorry driver, injured in a road accident and confined to a wheelchair, could have been denied a payout, as the insurer could maintain they were still fit to work in other professions, such as office administration.
