Residual disability insurance is a rider that can be put on a long-term disability income policy. It is something that everyone should consider. If disabled, this rider guarantees that when you return to work you don’t lose all your disability income at once. Since recovery takes time, not everyone can return to work immediately; people must ease into working at 100% capacity, and residual disability benefits help fill in the gaps.
Take a salesman for instance. If he were disabled for a length of time, then he may have lost clients – his book of business may have shrunk. It takes a lot of work and effort to restore his clientele. With the residual disability, he will be compensated a portion of his disability income as he rebuilds his business. Similarly, some people can not immediately come back to work full-time; they may only be able to work half-days. Until they are fully recovered and can return to work full-time, residual disability benefits will provide compensation. Typically, the residual benefits pay 50% of the disability income.
Since insurance is oftentimes overwhelmingly confusing, we want to shed light on this industry by answering YOUR questions. So if you have any questions or concerns, comment below and your question may be the topic of our next video!
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