Arizona Life and Health Practice Exam

Under a group long-term disability policy, when does the definition of disability based on any occupation typically apply?

1. Immediately after disability

2. After six months of disability

3. After one year of disability

4. After two years of disability

The correct answer is: After two years of disability

Under a group long-term disability policy, the definition of disability based on "any occupation" typically applies after two years of disability. This means that during the first two years, the policy may only require that you are unable to perform the duties of your own occupation. This is significant because it provides a higher level of benefits initially, allowing the policyholder to focus on recovering from their disability without the added pressure of meeting a broader definition of disability. After two years, the standard shifts to "any occupation," which means that to qualify for continued benefits, the policyholder must be unable to perform the duties of any job for which they are reasonably suited by education, training, or experience. This reflects a shift in the insurer's risk exposure as the policyholder is generally expected to show improvement or adaptability after a longer period of disability. Understanding the gradual shift in definitions helps individuals plan for their needs and may affect how they approach long-term health and career planning while dealing with disability.