In the Beth scenario, does an own-occupation disability policy keep paying the full benefit if the insured earns income elsewhere?

• A. False
• B. Only if the other income is over a threshold
• C. Only after a future re-underwriting
• D. True

Answer: (D)

With own-occupation disability coverage, the key idea is that disability is defined by the inability to perform the duties of your own occupation. Benefits are based on that disability, not on how much you earn elsewhere. So as long as Beth cannot perform the duties of her own occupation, she remains eligible for the full benefit, regardless of any other income she earns. Only if the policy includes an explicit offset for other income or a different rider would the benefit be reduced. In the typical scenario described, the benefit is paid in full.