Residual Disability Claims: Benefits and Eligibility

Author: Disability Attorneys Dell & Schaefer
Published: 2010/09/16 - Updated: 2026/01/11
Publication Type: Informative
Category Topic: Claims - Related Publications

Page Content: Synopsis - Introduction - Main - Insights, Updates

Synopsis: This information comes from disability insurance attorneys who specialize in long-term disability claims, making it particularly valuable for individuals navigating the complex world of partial disability benefits. Residual disability provisions allow workers who remain employed despite limitations to receive partial benefits based on their income loss - typically calculated as a percentage of pre-disability earnings matched to working capacity. The guidance proves especially useful for people with disabilities who want to continue working while managing health conditions, as it clarifies the extensive documentation requirements carriers demand, including tax returns, profit and loss statements, and medical records. Understanding these provisions helps claimants avoid common pitfalls, such as missing the requirement that some policies mandate a period of total disability before residual benefits kick in - Disabled World (DW).

Introduction

What is a Residual Disability Income Claim?

Residual disability is a complicated provision that's contained in many long-term disability policies. Many people will claim residual disability because of the fact that they're disabled, yet they continue to work in their occupation.

Main Content

Residual disability is often defined as the inability to perform one ore more duties of your occupation, or it can be defined as unable to perform your duties for the same amount of time as you used to be able to perform them.

An example of how you would calculate a residual disability income would be if you were working 50% of the time you used to work and you're making 50% of your pre-disability earnings, then you would receive 50% of your benefit because you had a 50% loss of income. So if your benefit was $5,000 and you had a 50% loss of income, you would receive $2,500 a month monthly benefit.

Calculation of your residual disability benefit can be complicated because the disability carrier will often ask you for a lot of information.

Some examples of things they'll ask for could be your tax returns for the past five years, your monthly profit and loss statements for the past two or three years, copies of your physician, copies of your production reports, and sometimes they'll even go as far as asking for bank account statements.

So if you're considering a residual disability claim, there are lots of issues that you should be aware of and there are often many things that you can do to maximize your recovery under a residual disability claim.

The last thing you really need to be aware of with a residual disability claim is that there are many policies that require you to be totally disabled for a certain period of time before you can claim residual disability.

If you have any questions regarding a residual disability claim, please contact us at your convenience.

Insights, Analysis, and Developments

Editorial Note: The intersection of disability and continued employment remains one of the most misunderstood areas of insurance law, yet it represents a critical lifeline for those whose conditions allow partial work capacity. While carriers often present residual claims as straightforward mathematical exercises, the reality involves nuanced interpretations of policy language, strategic documentation gathering, and careful timing - factors that can mean the difference between receiving fair compensation and facing denial. Anyone considering a residual disability claim would be wise to treat it not as a simple form to fill out, but as a financial and legal process deserving the same attention they'd give to any significant life decision affecting their income and future security - Disabled World (DW).