Residual disability
| Residual disability |
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| See also |
Residual disability is a type of disability, when a person is capable of executing some of his or her important duties [1]. Residual disability is also defined as inability of performing some duties of one's occupation or at least inability to execute these functions as often as able-bodied worker.
Residual disability is conjugate with a percentage of workers' pre-disability income. In other words, residual disability is a benefit which ensures the coverage for any partially disabled person based on their loss of income due to their inability to work at full capacity[2]. The benefit is calculated according to the sum of total income a worker has lost due to his inability to work. The benefit is also paid when an employee can work part-time instead of full-time. Residual disability also administers the protection of salary lost due to disability and is adapted to the previous amount of salary.
Residual disability rider
In most cases, to claim residual disability rider, disabled person has to experience at least a loss of 20% of income or more due to his or her disability. What is more, when a worker loses more than 80% of his salary, it is possible to claim 100% of his monthly disability benefit [3]. In some cases, a worker has to go through[4]:
- A qualification period which points out a particular amount of days that must antedate the period of reduced disability.
- Elimination period which means that before the benefits are applied, some amount of time has to elapse. This appertains to the total days since the disability occurred. Most typical elimination periods are: 30, 60, 90, 120, 180, 365 days.
Footnotes
References
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- Crews T., (2010)., Fundamentals of Insurance. South-western Cengage Learning, Mason.
- Figas J., (2009)., Disability Insurance and Other Living Benefits. CCH Canadian Limited, Canada, p. 46.
- Huffman B., (2005)., Scared Rich: Building Wealth with Confidence. iUniverse Inc., Lincoln
- Korman J., Furans H., (2010)., The Business of Plastic Surgery: Navigating a Successful Career. World Scientific Publishing, Singapore, p. 443.
- Meyer B., Wallace K.C. Mok., (2019)., Disability, earnings, income and consumption. Journal of Public Economics 171, 51-69.
- Magratten B., (2007)., Erisa Survey of Federal Circuits. ABA Publishing, Chicago, Illinois, p. 145.
- Ormel J., Oldehinkel T., Brilman E., (1993)., Outcome of Depression and Anxiety in Primary Care. A Three-Wave 31/2-Year Study of Psychopathology and Disability. Arch Gen Psychiatry, vol. 50.
- Ostir G. V. (Ed.), (1998)., Lower Body Functioning as a Predictor of Subsequent Disability Among Older Mexican Americans. Journal of Gerontology, Vol. 53A. No. 6.
- Rattiner J., (2009)., Financial Planning Answer Book. CCH, Chicago, Illinois, p. 3.46
- Roth E. J., (ed.), (2011)., Increased Residual Disability Among Poststroke Survivors and the Repercussions. Top Stroke Rehabil, Belgium.
Author: Michał Sznurkowski
