Individual Disability Insurance

Residual Disability

A residual disability is a lingering sickness or injury that causes a loss in earnings of at least 20% of what you earned before your disability, and keeps you under appropriate physician's care.

It should be noted that there is no loss of income required during your elimination period. The amount of residual disability payments is determined by your pre-disability earnings. Those "pre-disability earnings" are calculated by averaging your monthly income for the 12 months before your disability or by taking the highest average for any 24 consecutive months during the five years preceding the disability. You choose the higher figure.