What are the residual benefits of a disability insurance policy?
A residual disability insurance policy provides disability payments to you if are working but suffer an income loss as a result of your inability to work full-time or your inability to perform all the duties that you routinely performed prior to your disability. According to “Wealth Enhancement & Preservation” (The Institute Inc., Denver), “Generally, residual benefits are payable when your income loss is 20% or more and you are under the care of a physician. The amount of benefits that you receive is in direct proportion to your income loss. For example, you return to work but are earning 40% less than before your disability. In this case, you would be eligible to receive 40% of your disability benefits. Most residual disability plans provide a minimum benefit of 50% of covered compensation.” It’s important to note that some policies define residual disability simply as a loss of income, while others require a loss of income and a loss of time or duties. Other contracts combine these
