What does 'unable to work' or 'totally disabled' mean in Income Protection policies?

The definition of disability is crucial in Income Protection policies as it determines when you can claim. Most modern policies use an 'own occupation' definition for an initial period (typically 2 years), meaning you're considered disabled if you're unable to perform the important duties of your usual occupation due to illness or injury, even if you could do a different job. After this initial period, many policies switch to an 'any occupation' definition, where you're only considered disabled if you can't work in any occupation for which you're reasonably suited by education, training, or experience. Some premium policies maintain the 'own occupation' definition for the entire benefit period, providing superior coverage. The definition also considers whether you're working reduced hours or in a reduced capacity. Most policies also include a 'loss of earnings' definition that may pay partial benefits if you're working but earning less due to your condition. The specific wording varies between insurers and can significantly impact whether a claim is accepted. For example, a surgeon who loses a finger might be unable to perform surgery ('own occupation') but could potentially teach medicine ('any occupation'). Understanding your policy's disability definition is essential before purchasing.