Part of our guide: Disability Income Insurance: Solutions, Tools and Guides →
Ask clients to picture a disability and most imagine a catastrophic accident. That’s the least likely scenario. Understanding the three types of disability helps clients see why partial benefits matter.
Key takeaways
- Accidental injuries cause a small share of disability claims; most come from illness.
- Disabilities fall into three categories: loss of use (presumptive), loss of ability (total), and loss of income (partial).
- Many claims are partial, so a partial or residual benefit should be part of nearly every recommendation.
Many disability claims are partial: the client can still work, just not fully. Without a residual benefit, the policy may not pay.
Loss of use: presumptive disability
Permanent loss of sight, hearing, speech, or use of hands or feet. Most policies treat these as total disability automatically, even if the insured can still work.
Loss of ability: total disability
Inability to perform the substantial and material duties of one’s occupation. Common causes include heart attack, stroke, and back injuries.
Loss of income: partial disability
The insured can do some duties, or all duties for less time or less effectively, and loses income as a result. Conditions such as multiple sclerosis, cancer, arthritis, and diabetes often cause partial disabilities.
Why residual benefits matter
Because so many claims are partial, always include a partial or residual disability benefit. For severe cases, consider a catastrophic disability benefit rider.
Frequently asked questions
What are the types of disability in disability insurance?
Presumptive (loss of use), total (loss of ability to do one’s job), and partial or residual (loss of income from reduced ability).
What is a residual disability benefit?
A benefit that pays a proportion of the monthly benefit when a disability reduces income but the insured can still work part-time or in a limited way.
Are most disabilities caused by accidents?
No. Most disabilities are caused by illnesses.
Reviewed by Tim Fuller on 2026-09-25
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.
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