When considering the purchase of disability insurance, it is vital to look at the definition of disability in each policy. In addition, you must consider how that definition applies to your specific job situation.

Disabilities carry adjectives such as "total and permanent," "partial" and "temporary." Frankly, most disabilities are "partial" and "temporary."

Tip. As such, if you are considering the purchase of a disability policy that covers "total and permanent" injuries or illnesses only, you may be wasting your money.

Disability policies also have definitions relating to your occupation. The best, and most expensive, coverage is that which kicks in when you are unable to perform your specific job.

Example. Say a neurosurgeon loses his or her hand in an accident. The person could still be a physician, but probably could no longer perform the duties of a neurosurgeon. By the definition of so-called "own occupation" policies, this person is disabled.

In contrast to "own occupation," there is "any occupation" coverage. In this case, if the person can perform a job that requires the same skills and training, he or she would not be disabled. In the case of the neurosurgeon, if he or she could continue to serve as, say, a general practitioner, that person would not be disabled. However, some disability policies will pay some of the difference in salary that results from having to change job duties.

Please keep in mind that some disability policies define "any occupation" to be truly that - any occupation, regardless of the amount of skill and training required.