Residual Disability

Published: | Updated: February 4, 2018

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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