Residual Disability is a disability income policy that provides what?

Residual Disability is a disability income policy that provides what?

• A. A disability income policy that provides continuing benefits after the insured returns to work.
• B. A disability policy that pays a lump sum on disability.
• C. Premium waiver during disability.
• D. A policy that pays a benefit only at total disability with no post-return benefits.

Answer: (A)

Residual disability provides ongoing protection even after you go back to work. It pays a portion of the disability benefit to cover the income you’ve lost because of the disability, as long as you’re earning less than your pre-disability income. The idea is to bridge the gap created by partial return to work, so you’re not fully without income while you’re still dealing with the disability. For example, if your full benefit is $2,000 a month and your earnings after returning to work drop you to $1,200, the policy would continue paying enough to offset that loss, within the policy’s limits. This isn’t a lump-sum payment, it isn’t a premium waiver, and it isn’t restricted to total disability—it's designed to provide ongoing benefits when you’ve returned to work but still have reduced income due to the disability.

Residual disability provides ongoing protection even after you go back to work. It pays a portion of the disability benefit to cover the income you’ve lost because of the disability, as long as you’re earning less than your pre-disability income. The idea is to bridge the gap created by partial return to work, so you’re not fully without income while you’re still dealing with the disability. For example, if your full benefit is $2,000 a month and your earnings after returning to work drop you to $1,200, the policy would continue paying enough to offset that loss, within the policy’s limits. This isn’t a lump-sum payment, it isn’t a premium waiver, and it isn’t restricted to total disability—it's designed to provide ongoing benefits when you’ve returned to work but still have reduced income due to the disability.