A residual disability benefit is an optional benefit to add to your disability insurance plan. This benefit supports policyholders with a portion of the total benefits stated within the policy.
The residual disability benefit is generally determined as a percentage of the total disability benefit and is designed to compensate you for income lost due to your disability.
Keep reading to learn more about residual disability.
Residual Disability Benefits
If your physician's disability insurance plan includes residual benefits, you’ll receive benefits according to the amount of income you have lost as a result of your disability.
This type of policy will pay benefits even if you’re able to work part-time and aren’t completely disabled. The amount you receive is calculated by a percentage of income you earn working part-time with respect to what you earned when you worked full-time.
Key Elements of Residual Disability Benefits
In essence, everything you need to know about residual disability benefits can be summarized in a few key points:
- Residual disability benefits represent the income that you lose when you go on disability insurance.
- Generally, recipients of residual disability benefits work part-time but are usually unable to work full-time as a result of a disability.
- A residual disability benefit differs from a disability benefit.
- If you’d like to collect residual benefits from disability insurance, you’ll need to provide adequate information with respect to your disability.
Residual disability benefits can provide policyholders with much-needed income during a difficult time. It may be a good idea to shop around for policies that include this element so that you’re fully protected in the event you sustain a disability.
Shopping for disability insurance can be a complicated and time-consuming process. If you need assistance applying for disability insurance benefits or your claim for benefits was denied, our team may be able to help.
Call Dabdoub Law Firm today at (800) 969-0488 to speak with an attorney about your case.