Which provision provides reduced benefits for an insured not working at full capacity?

The provision that provides reduced benefits for an insured not working at full capacity is known as residual disability. This provision is specifically designed to offer financial support to individuals who may be able to return to work but are unable to perform at the same level they did prior to their disability.

Residual disability benefits allow for compensation proportional to the loss of income the insured experiences due to their reduced work capacity. For instance, if an individual can only perform half of their job duties and earns lower wages as a result, the residual disability provision would provide benefits that help make up for the difference in lost earnings.

It’s important to note that this type of benefit is distinct from temporary or partial disability provisions, which typically provide benefits based on either a complete inability to work for a short duration or only a portion of the full disability criterion, respectively. Long-term disability benefits, on the other hand, generally kick in after a sustained period of total disability and may not specifically address the nuances of reduced work capacity like the residual disability provision does. Thus, the emphasis on partial work capabilities and associated financial support makes residual disability the correct provision in this context.