Definition - What does Residual Disability mean?
Residual disability refers to a decline in work performance because of a health condition. Disability insurance pays for income loss as a result of the condition.
Insuranceopedia explains Residual Disability
To receive a residual disability benefit, the insured should still be able to work but not at a level or number of hours comparable to their performance prior to the health condition.
Insurers will only pay out the benefit if the insured experiences a significant loss of income. Some companies only pay when the loss of income is over 20%.
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