Disability Insurance Articles

Disability Insurance Coverage For A Partial Disability

2010-10-06

Partial disability, also known as residual disability, pays the insured person when they become unable to do part of their job. Disability can be the result of an accident but is more commonly caused by an illness and is a temporary condition. Partial disability insurance benefits are paid directly to the insured person and are intended to replace their lost income. This kind of policy does not pay for the medical expenses related to a disability.

Partial disability may be part of a full disability insurance claim. When the person is just becoming ill or recovering from full disability they may at some point be considered partially disabled. An insured person can normally claim residual benefits when they lose at least 20% of their income due to their condition and the attending physician can verify the disability.

Partial disability benefits are usually paid as a percentage of the benefits allowed in a full disability insurance claim. Most residual disability plans provide a minimum benefit of 50% of covered compensation. If your disability policy would normally pay $5000 per month if you are declared totally disabled then a partial disability that causes you to be out of work and lose that income for 50% of the time would make your partial disability benefit $2500 per month.

Insurance for a partial disability may define the disability using two different methods. One is based on the dollar amount lost through the inability to perform the job. Another definition looks at the time lost and a list of duties that the person cannot perform during the disability period. Those duties are normally associated with a particular specialty or profession. If for instance a surgeon could see patients but not perform surgery this provision would invoke a period of partial disability.

Some disability plans do not have a provision for partial benefits. Under this type of plan you are defined as totally disabled if you cannot perform the functions of your job on a full time basis. If a plan has a partial disability benefit then an insured person may have more difficulty in proving a total disability and end up receiving fewer benefits than they might have under a full disability only plan.

Full disability insurance may have a benefit period that may range from 12 months to retirement age. Residual disability benefits may only be payable for as little as 12 months. The rates for disability insurance vary with the amount of coverage that is provided with a longer benefit period usually resulting in a higher rate.

Each policy has a contract that includes the specific terms of the coverage. An insured person should refer to their own policy to determine their benefits.