What type of disability allows for claims to be payable to a disabled income insured even if they can still work?

The correct answer is residual disability. This type of insurance coverage is designed to provide benefits to individuals who are unable to perform all of their regular duties due to a disability, but who are still able to work in some capacity. Residual disability benefits allow for partial claims to be paid based on the income difference between what the individual was earning before the disability and what they can earn now. This means that even if the insured is still capable of earning some income, they can receive financial support to help bridge the gap created by their disability.

In contrast, temporary disability refers to a situation where an insured individual is unable to perform any work for a limited duration, and generally, benefits are only paid during that time when they are completely unable to work. Occupational disability means the individual is unable to perform their specific job or occupation, which may not cover situations where they can work in a different capacity. Presumptive disability typically refers to conditions that automatically qualify an individual for benefits without the need for proof of loss of income or functional impairment, such as loss of sight or limb, which does not fit the scenario of still being able to work.