Non-business Related Coverage

Two special disability policies are used in non-business related situations:

Non occupational policies, and
Debt protection policies

Non occupational policies

Non-occupational disability coverage is more common in group insurance than in individual insurance.  However, the coverage exists in both individual and group insurance forms.  The principal feature of the non-occupational policy is that it pays disability income benefits only if the disability is caused by a sickness or injury that is not related to the insured's occupation.   

The individual policy version providing non-occupational coverage is often used to supplement Workers Compensation benefits.  While certainly not as comprehensive as traditional disability coverage, it may be the only form of coverage available to workers in certain high-risk occupations.   

Debt Protection

Debt protection disability policies are, also, more frequently issued on a group rather than an individual basis.  Just as in the case of non-occupational coverage, however, debt protection coverage exists in both forms.  

When debt protection disability coverage is issued on a group insurance basis, the beneficiary is usually the lending institution.  Group debt protection disability coverage is often used with mortgage debt.  In individual disability policies that provide debt protection disability payments, the beneficiary is almost always the debtor, not the creditor.