Residual disability benefit

Payment for an individual with a residual disability. Amount may vary depending on the percentage of income loss that is attributed to the disability. See partial disability benefit .
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A provision in disability income policies that grants benefits based on a reduction in earnings, as opposed to inability to work full time.

Residual Disability Rider

If one is disabled but can still work, he or she may suffer a loss of income. For example, the insured may have heart problems and be told to “slow down” at work. The policy pays the reduction in income if the slow down results in a loss of 20% or more of the insured’s income.

Residual Income

A clause used with disability income policies that provides for benefits to be paid when insured can do some but not all of his duties. For example, if the insured suffers a disability that causes him to lose a third of his earning power, the residual disability clause would provide one-third of the benefit that the policy would provide for disability.