In disability income insurance, a condition in which the insured is not totally disabled, but is still unable to function as before the sickness or injury, and therefore suffers a reduction in income of at least the percentage - typically 20 percent to 25 percent - specified in the disability income plan. Also known as partial disability.
In health insurance, a disability that limits an insured's earning ability even though he or she may be able to work full time. Many insurance companies are replacing the partial disability benefit with the residual disability benefit because it improves coverage with a longer benefit period and with benefits that are based on lost income instead of loss of time at work. (See also: partial disability and total disability.)
partial disability that limits one's ability to work and results in decreased income.