If a policyowner cannot perform one or more important job duties due to an injury, under which provision would the decreased income be paid?

• A. Total disability
• B. Residual disability
• C. Partial disability
• D. Presumptive disability

Answer: (C)

Partial disability is the provision that handles a reduced income when you can’t perform one or more important duties of your job but can still work in some capacity. Benefits are paid proportionally to the amount of income you lose due to the impairment. For example, if you pre-disability earned $3,000 a month and you return to work but only earn $1,800, your income has fallen by $1,200 (40% of $3,000). The policy would pay a partial disability benefit that reflects that 40% decrease, up to the plan’s limits. This differs from total disability, where you cannot perform any duties and typically receive the full benefit. (Residual disability and presumptive disability have different definitions and payout rules that depend on the policy.)