Partial (Residual) Disability

Total disability means the insured cannot perform the duties of their occupation or any occupation, depending on the definition; partial disability means the insured can work but at reduced capacity or income — Total disability is defined by the inability to perform occupational duties: under an own-occupation definition, the duties of the insured's own occupation; under an any-occupation definition, the duties of any occupation for which the insured is reasonably suited. Partial or residual disability exists when the insured can work but at a reduced level or reduced income, allowing a proportional benefit. The duration of the disability does not define the distinction; the degree of incapacity to work does, and the policy language determines which standard the insured must meet to qualify for full benefits.

National insurance concept

Returns to work but suffers a loss of income because the disability prevents working at full capacity — A residual disability benefit addresses the partial-income situation: the insured returns to work but, because of the disability, cannot earn what they did before, for example a surgeon who can no longer perform surgery or a consultant limited to part-time hours. Benefits are typically proportional to the actual income loss: a 40 percent loss of income produces roughly 40 percent of the total benefit. Residual benefits are broader than older partial disability clauses and are a common rider on quality individual disability policies, encouraging return to work while still protecting the insured's reduced earning capacity.

National insurance concept