Disability & Long-Term CareQuestion 87 of 315
An insured returns to part-time work after a covered disability and earns 40 percent of pre-disability income. Which provision pays a pro-rata benefit based on the lost income?
a.Partial disability with a flat 50 percent benefit
b.Presumptive disability
c.Residual disability
d.Recurrent disability
Explanation
Residual disability is the modern provision that pays a pro-rata benefit calculated on the percentage of income the insured has lost compared with pre-disability earnings. It encourages a return to part-time work without forfeiting the entire benefit.
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