Own Occupation Disability Insurance Frisco TX

Call (469) 905-4422 for a free Disability Insurance quote! Let Sentry Income Protection safeguard your future.

Looking to protect your income as a self-employed professional? Disability insurance can be a lifeline, but understanding your options is key. We’ll break it down clearly. As a trusted independent disability insurance agency, Sentry Income Protection is here to help. Call us at 469-905-4422 we’re happy to chat!

Own Occupation Disability Insurance Frisco TX

For many high earners in Frisco, the ability to earn an income is their single largest financial asset. You can insure your home, your car, and your life, but too many people never insure the paycheck that makes everything else possible. That’s what own occupation disability insurance does, it protects your ability to earn in your chosen profession. When explained properly, it’s one of the most valuable and misunderstood pieces of financial planning.

Understanding what own occupation means

Own occupation disability insurance pays benefits if you cannot perform the material and substantial duties of your specific occupation or specialty, even if you are healthy enough to work in another capacity. That distinction is critical.

If you’re a surgeon at Baylor Scott & White Medical Center in Frisco and a hand injury prevents you from operating, you could still teach, consult, or work in administration, but your surgical income is gone. A true own occupation policy would continue paying full benefits even while you earned other income elsewhere.

Some policies use a “modified” or “transitional” definition that only pays if you cannot work at all, or it reduces benefits if you earn money doing something else. A true own occupation definition is what most professionals, farmers, physicians, dentists, attorneys, physical therapists, CPA’s, contractors, nurses, truck drivers, and business owners should look for.

The structure of benefits

Individual disability insurance typically replaces about 60 to 70 percent of your income. The exact amount depends on how “income” is defined in the policy, some include bonuses and partnership distributions, others don’t. If you own a small practice or business near Frisco Square or The Star, ask whether business draws, dividends, or K-1 income are counted.

Premiums for private policies generally cost between one and three percent of annual income depending on coverage options. That’s a practical guideline when setting expectations with a financial planner.



Two time periods define how the policy works: the elimination period and the benefit period. The elimination period is how long you must be disabled before benefits begin, usually 90 days. The benefit period determines how long payments continue, two years, five years, to age 65, or sometimes for life. Longer benefit periods cost more but offer much better protection for long-term disabilities.

Portability and ownership

Portability simply means an employer or group plan cannot cancel coverage when you change jobs or leave an employer. The vast majority of people do not stay with a single employer their entire career anymore. An individual own occupation policy is portable because you own it. You can move from a corporate position in Legacy West to a private firm in Frisco, or take time off to start your own practice, and your policy stays intact.



Employer provided long-term disability plans usually are not portable. If you leave, the coverage ends or must be converted. Conversions often reduce benefits and increase cost. Whenever possible, own your contract outright, with terms that cannot be taken away as long as you pay the premium.

Riders that customize protection

Private disability insurance is built around a base contract, then tailored through riders that adjust how benefits work. Riders are not gimmicks, they’re planning tools that determine how your policy performs under different circumstances.

The Residual or Partial Disability Rider is one of the most valuable. It pays proportional benefits if you return to work but lose part of your income because of reduced hours, duties, or efficiency. For example, if a dentist in Newman Village can only practice three days a week, this rider makes up part of the lost earnings.

The Cost of Living Adjustment (COLA) Rider increases monthly benefits each year you remain on claim, protecting long-term purchasing power. Inflation is the hidden enemy of every long-term disability claim, especially for those who become disabled in their 30s or 40s.

The Future Increase Option (FIO) or Guaranteed Insurability Rider lets you raise your coverage later without new medical underwriting. That’s ideal for younger professionals whose income will grow.

A Catastrophic Disability Rider adds extra benefits if you suffer a severe disability, such as the loss of two limbs, sight, or the ability to perform key daily activities.

A Retirement Protection Rider funds contributions to a retirement plan while you’re disabled, so your long-term savings don’t fall behind.

The Student Loan Protection Rider can cover or reimburse loan payments if you’re disabled early in your career, particularly useful for physicians and attorneys still paying off graduate school debt.

Other riders include Waiver of Premium, which suspends your premium payments while you’re on claim, and Presumptive Disability, which pays full benefits for certain major losses even if you could technically still work.

These riders collectively define how flexible and durable your protection will be. 

Other contract features worth understanding

Several other elements determine whether your policy will truly protect you when you need it most.

Non-cancelable and Guaranteed Renewable means the insurer cannot change your premium or benefits as long as you pay on time. That protects you from premium increases based on your age or occupation class.

Residual and Recovery benefits help you transition back to work gradually, paying partial benefits as your income rebuilds.

Offsets and integration clauses outline whether other sources of income, like Social Security Disability or workers compensation, reduce your private benefits. A well structured private policy minimizes or excludes these offsets.

Mental and nervous limitations deserve special attention. Many policies limit benefits for mental health, stress, or burnout to 24 months. Some high quality carriers allow full benefits for these conditions, which can be critical for professionals under high stress.

Underwriting and occupation class influence eligibility and cost. Each insurer classifies jobs differently. A cardiologist, trial attorney, and civil engineer all face different risk profiles. Different carriers may may treat your occupation more favorably than others.

Company strength and claims reputation matter more than any brochure feature. Look for carriers with strong A.M. Best or Moody’s ratings and a proven record of fair claims handling.



Premium structure also deserves review. Level premiums stay fixed for life; graded premiums start lower and increase over time. Level premiums usually cost less over the long run for those planning to keep their policy to retirement.

Taxes and coordination with other plans

Private disability benefits are typically tax-free if you pay the premiums with after-tax dollars. Employer paid benefits are taxable. That difference can change your net replacement rate significantly.

If you already have employer long-term disability coverage, your private policy can be layered on top to reach your true income protection target. Your financial advisor can model how both integrate, ensuring you’re not over or underinsured.

Bringing it all together

A well constructed own occupation disability policy is not a one size fits all product. It’s a contract built to match your income, specialty, and lifestyle. For a Frisco client earning a high professional income, the key priorities are:

• True own occupation definition
• Portability and ownership of the contract
• Long benefit period (ideally to age 65 or 67)
• Residual and COLA riders
• Future increase option for growing income
• Non-cancelable, guaranteed renewable terms
• A reputable carrier with strong financial ratings

These features are what make private coverage reliable when it counts.

Local considerations in Frisco

Professionals here have diverse careers, technology consultants near Hall Park, financial planners by Stonebriar, healthcare providers in Frisco Station. The area’s growth and entrepreneurial energy mean many people move between roles or start new ventures. Portability and the ability to adjust coverage become especially valuable in a market like this.

It’s also common for households to have dual high incomes. A good financial advisor will coordinate both policies so each partner’s plan complements the other, avoiding duplicated riders while ensuring both incomes are protected.

You can often meet with a local advisor near The Star District or Legacy West who specializes in private disability planning for professionals. Tax return, pay statements, and existing coverage details. That’s all that’s generally needed for a precise analysis and side by side carrier comparison.

Final thoughts

Own occupation disability insurance is not an emotional purchase, it’s a rational one. It protects the income that funds every other financial goal: your mortgage, your children’s education, and your retirement plan. For high income professionals in Frisco TX, it should be part of the same conversation as life insurance and investment planning.



The key is understanding what you’re buying. Focus on definitions, benefit periods, riders, portability, and claim practices. Keep the policy in your name, with clear wording and predictable terms. If you work with a financial advisor who understands both the contracts and your profession, you can build coverage that truly protects your career and lifestyle, no matter what happens.

Call 469-905-4422 for a Free Disability Insurance Quote! We represent all the top carriers and can provide an unbiased evaluation that meets your individual needs.