If you are suffering from an injury, illness, or other condition that has rendered you incapable of performing the duties of your occupation — even if only partially — then you may be entitled to significant benefits under your private disability insurance policy. Depending on the particularities of your insurance plan, residual or partial benefits may be available.
Let’s take a look at how residual benefits work.
Recovering Benefits Without a Total Disability
Some disability insurance policies include a partial (residual) disability benefits rider, which allows for the recovery of a percentage of your total benefits amount, depending on the nature and extent of your partial disability.
The availability of residual benefits is critical in situations where you have been sufficiently impaired such that you cannot work full-time, or perform all the primary duties of your occupation (to the degree necessary for full compensation). In those scenarios — without residual benefits — you would be left in something of a “coverage gap,” where you neither qualify for total disability benefits, nor earn enough to cover your costs.
- Related Article: 5 FAQs About Private Disability Insurance Claims
Residual Benefits Issues
Residual benefits are a rather complex issue in some cases, as there are a number of limitations to keep in mind.
Residual benefits pay out a percentage of your total disability benefit (i.e., they are pegged to your total benefit amount). What you receive will depend on the percentage impairment that your partial disability causes, as measured by your lost income. For example, if your earnings drop 40 percent due to your partial disability, then you will be entitled to recover 40 percent of your total disability benefits.
It should be noted, however, that if your partial disability impairment does not impact your earnings above a certain specified percentage (i.e., 15 or 20 percent in most plans), then you will not be entitled to any residual benefits. Residual benefits may also be capped out at a maximum percentage, depending on your insurance policy.
Looking for Personalized Advice From an Insurance Lawyer?
Contact a Qualified Chicago Private Disability Attorney for Help
Bryant Legal Group, P.C. is a boutique insurance litigation firm based out of Chicago, with attorneys who have decades of experience advocating on behalf of disability insurance policyholders in disputes against their insurers.
We are committed to comprehensive legal representation — from the start of client engagement, we work with medical experts to evaluate the disability claims at-issue and determine how to more effectively approach the dispute (from a strategic perspective). This results-oriented mentality has led to a number of successes over the years, and we have a long history of securing significant and favorable case results for our disability clients.
Call (312) 313-6179 to schedule a consultation with an experienced Chicago private disability attorney here at Bryant Legal Group, P.C.
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