Understand Individual Disability Insurance Occupation Classification

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Rates charged will vary as to gender and smoking status. The classification may vary between companies and the number of classifications may vary from as few as five to twenty or more.Occupations are grouped into classification and under writing is restricted to proper occupation classification.
Occupational Classifications are rated on their morbidity exposure and based on the answers received below:
1. Is the occupation and income stable and permanent
2. Does the occupation require travel and what is the normal location of the individual’s work site?
3. What are the work duties?
4.Does the occupation require a regular work schedule?
5. What economic, social or environmental factors impact the worker?
6. Are there any health or hazards related to the individuals job tasks?

The classes will vary by company, but I can tell you how one of the companies I deal with does it. They use five classes, as follows:
1. Class 5A
a) Professionals work in the office.
b) White Collar Executives that is in a senior position with senior duties.

2. Class 4A
a) Professional work outside the office with no hazardous duties.
b) White collar executive that is less experience and duties than someone at a 5 A level.

3. Class 3A
a) those work in non-hazardous occupations such as manufacturing agents, certain clerical duties like an auctioneer or surveyor.
b) Occupational demands that take them out of the office on a regular basis.
c) Supervisors, superintendents, contractors and inspectors.

4. Class 2A
a) Light manual occupations, such as hairdresser and barber.
b) Skilled trades people with good occupational experience, including plumbers, and painters.

5. Class 1A
All other insurable occupation workers.
Some occupations are not insurable. Disability insurance are harder to get issued than life insurance policy and it requires more detail.
The waiting period for these type of policies usually are 14, 30, 60 or 90 days and the benefit amount is based on a percentage of pre-disability income and is determined by the companies.
I hope this information will help. If you need more information of the about subject, please visit my home page at:
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