Residual Disability

A residual disability rider provides a reduced basic monthly benefit in the event that the insured does not meet the definition of “total disability” under the policy, but nevertheless suffers from a disability that affects his or her ability to work and/or capacity to earn income.  Residual disability benefits are typically provided in cases where the insured returns to work on a part-time or full-time basis, but suffers a loss of earnings.  The insurance company calculates what it believes to be the insured’s loss of income, and then pays benefits on a pro rata basis, based upon its calculations.

Click here for more information about how benefits are calculated under residual disability provisions.