Disability & Long-Term CareQuestion 641 of 716
A residual disability benefit pays a proportional benefit when the insured:
a.Voluntarily chooses to retire early even though the disability would not otherwise prevent full-time work
b.Has fully recovered and returned to normal earnings
c.Is totally and permanently disabled
d.Returns to work but earns less because of the disability, based on the percentage of income lost
Explanation
Residual (partial) disability benefits pay in proportion to lost income when the insured works but earns less due to the disability. It does not apply to total disability, full recovery, or voluntary retirement.
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Related questions on this topic
- Benefits received from a tax-qualified long-term care insurance policy are generally:
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)