Residual Disability

What Does Residual Disability Mean?

Residual disability refers to a reduction in work performance due to a health condition. Disability insurance compensates for the loss of income resulting from this condition.

Insuranceopedia Explains Residual Disability

To qualify for a residual disability benefit, the insured must still be able to work, but not at the same level or number of hours as before the health condition occurred.

Insurers typically require a significant loss of income for the benefit to be paid. Some companies will only provide payment if the loss of income exceeds 20%.