Residual or partial disability refers to any medical condition that negatively impacts your ability to work, but it does not make you completely disabled. More specifically, residual disability can occur in two different ways:

• The ability to perform one or more, but not all, the substantial and material duties of your occupation, or
• The ability to perform all the significant and material duties of your occupation, but for a shorter amount of time than before you became disabled

Residual disability clauses provide an incentive for partially disabled persons to return to work, even if they are unable to perform their jobs thoroughly or work full-time. These clauses promise payment of a partial benefit after the individuals return to work, based on their alleged loss of earnings attributable to their partial disability. This income loss provision sets forth a specific calculation to determine the earnings loss that you are suffering as a result of residual disability.

One typical example of an income loss calculation used in a residual disability policy might be the monthly benefit listed in a schedule of benefits multiplied by your percentage loss of monthly income. The purpose of this calculation is to determine how much residual disability benefits you should receive, based on the income that you are losing as a result of your residual disability. Instead of receiving the full disability benefit provided for in your plan that you would receive for total disability, which is usually a set amount, your residual disability benefit differs according to whatever formula your insurance company chooses to use.

Residual disability clauses also may terminate any benefits based on residual disability when you reach age 65. In contrast, many full disability benefits will be payable for the remainder of your life.

Bonnici Law Group has handled the claims of countless individuals who have encountered difficulties in procuring long-term disability benefits under their employers’ ERISA-governed insurance policies. We will protect your rights and advocate on your behalf throughout every stage of the claims process. Call our office at 858-261-5454 to set up an appointment to speak with us today.