Residual disability benefits are paid as a percentage of the total disability benefit and are typically what kind of in nature?

• A. Short-term only
• B. Long-term in nature
• C. Only during the elimination period
• D. Only if total disability ceases

Answer: (B)

Residual disability benefits are designed to replace part of the income you lose when a disability prevents you from earning your usual amount, even though you’re not totally disabled. They’re paid as a percentage of the total disability benefit, and the key idea is ongoing income support during a partial disability. Because the goal is to bridge the gap while you’re gradually returning to work or your earnings remain reduced, these benefits are typically long-term in nature, continuing for as long as the partial disability persists and earnings stay below your pre-disability level (often tapering as your income improves). They aren’t limited to the elimination period, and they aren’t triggered only if total disability ceases; they’re designed to be paid while you’re partially disabled.