We are often asked “What is a residual benefit and what makes it important?” Being residually disabled is often defined as having a loss of earnings because of an illness or injury, yet still working in your job because you’re not totally disabled.
In a disability policy, a residual benefit rider is designed to provide supplemental income to a partially disabled person who is still working. It pays if you are residually (or partially) disabled, unable to work at full capacity and suffer a loss of income of 15 to 20 percent or greater. Structured properly, it can pay benefits for the full policy period ,usually to age 65 or 67.
It’s important to know that with many association policies, a residual benefit rider can require a period of total disability before the partial disability. In such policies, if a total disability does not occur first, policy benefits would not be paid. Because a large percentage of disability insurance claims can either start or end in a residual claim, a solid Residual Benefit Rider is an integral part of specialty occupation disability coverage.
To be sure your specialty coverage contains the long term residual benefit rider, please give us a call or text us at (704) 707-5788.