Does it matter whether you are considered Totally or Partially Disabled under your disability insurance policy if you are receiving benefits? Yes. This is because under many disability insurance policies, an individual with a Partial Disability will be paid only through the age of 65, while under the same policy, a Total Disability will allow the individual to collect benefits for the duration of their life. Moreover, Partial Disability benefits are based on the percentage of earned income lost. Thus, unlike Total Disability benefits, if the individual does not suffer a loss of earned income, benefits are not paid and in many cases, the contract ends after a few months. Moreover, in the event of a buy-out of the policy by the disability insurance carrier, resulting in the lump-sum settlement in lieu of periodic payments, an individual would be more apt to surrender the contract for less money than if the individual was deemed Partially rather than Totally Disabled. Insurance companies save themselves hundreds of millions of dollars each year by paying out Partial rather than Total Disability Benefits to their claimants.