Partial Disability Benefits Versus Residual Disability Insurance Benefits

Posted on April 27, 2010 and updated April 12, 2018 in Disability Insurance, Insurance Types, Life Insurance Canada News 1 min read

There is often a lot of confusion surrounding the difference between a partial disability insurance benefit and a residual disability benefit.

Partial disability insurance benefits are paid to an insured person, who experienced a loss of time or duties as defined in their policy due to a partial disability, such as an injury that affects only one part of the body. The Insured person will be eligible for a flat percentage of their monthly benefit, generally a maximum of 50%. The insured does not have to prove a loss of earnings to qualify for this benefit.

Residual disability benefits, which are less common, cover an insured person who experiences at least a 20% drop in earnings due to less than total disability. The monthly benefit amount is based on a percentage loss of income.

For more details, please contact us at 1-866-899-4849 or visit our Disability Insurance Quotes page.

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LSM Insurance
LSM Insurance

Hi Dhan,

Thanks for the note.

You would have to check the specifics of your policy contract. But if it has a partial diability benefit and you qualify you should be eligible for a flat percentage of your monthly benefit, generally to a maximum of 50%.

dhan kumari
dhan kumari

I have rheumatoid arthritis and is painful to work and i would like to know if i would be able to work part time and the rest be covered by partial disable benefit