Residual and partial disability benefits
Your disability policy may contain either a residual or partial disability provision that spells out what benefits you'll receive if you cannot work full-time after becoming disabled due to illness or injury. Residual or partial benefits may be part of your base coverage or offered as an optional rider.
|
|
| Residual Disability Benefits
| Partial Disability Benefits
| | Based on your loss of earning power. Your benefit is proportionate to the earning power you've lost, regardless of how many hours you work. For instance, if you suffer a 70% loss of predisability income, you'll receive 70% of your total disability benefit for as long as you are disabled (up to the maximum benefit period specified in the policy).
| Based on your loss of time on the job. You'll generally receive a fixed 50% of your total disability benefit for a short period of time (usually 6-12 months) regardless of your percentage loss of earnings.
|
|
|
|
