Residual Benefits
What Does Residual Benefits Mean?
Residual benefits provide a percentage of a policyholder’s benefits if they become disabled due to health issues. These benefits are paid monthly until the injured or ill person can return to work. Depending on the company, employees may be eligible to receive these benefits while working part-time.
Insuranceopedia Explains Residual Benefits
Residual benefits are provided to policyholders who cannot work due to an injury or illness. To receive these benefits, policyholders must provide sufficient proof of their condition. The insurance company will then provide a monthly income as long as the policyholder maintains an active insurance policy. To calculate the benefit amount, the insurance company considers the policyholder’s loss of income and the total benefit they would receive if they were fully unable to work, then determines a percentage of that amount. These benefits are only available to those who are temporarily disabled. Once the benefits are exhausted, individuals must apply for disability insurance if they remain unable to work.
