What is a residual disability income claim?

Disability attorney Gregory Dell discusses what a residual disability income claim is. and what a claimant should be aware of before filing 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. 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.

Leave a comment or ask us a question

There are 2 comments

  • Daniel, that is a very good question. To get specific regarding your claim, we would need to see a copy of your governing policy as the language varies from policy to policy. That being said, under most policies, if your income goes down while you are receiving residual disability benefits, then the amount of money the insurance company pays should increase as it is only decreased due to the amount you make from working. If you can get a copy of the policy, please feel free to contact us for a free consultation.

    Alex PalamaraMay 23, 2020  #2

  • If your work earnings drop due to an external event – COVID – not due to worsened disability – is the company still obligated to increase residual disability benefit during the period of low income, to make up for deficit? Or can they say that since the drop is not specific to the policy holder, or their business, but is economy wide, they are not responsible for the individual policyholder’s drop in income?

    Daniel S.May 23, 2020  #1

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Yes. We are a national disability insurance law firm that is available to represent you regardless of where you live in the United States. We have partner lawyers in every state and we have filed lawsuits in most federal courts nationwide. Our disability lawyers represent disability claimants at all stages of a claim for disability insurance benefits. There is nothing that our lawyers have not seen in the disability insurance world.

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Since we represent disability insurance claimants at different stages of a disability insurance claim we offer a variety of different fee options. We understand that claimants living on disability insurance benefits have a limited source of income; therefore we always try to work with the claimant to make our attorney fees as affordable as possible.

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Reviews

Bruce R. (Arizona)

Steve Dell has done an exceptional job with my disability application process. The firm is extremely well managed. They have acquired an incredible amount of experience over many years. I recommend them for disability insurance claims without reservation. 

Don (Florida)

I called this firm a few months ago completely disparaged due to a company cutting off disability benefits at a time that nearly caused me to lose everything.

Attorney Alex Palmera and Danielle worked hard to reach an amicable settlement and my case was settled a few months later. This is a good firm and the specific expertise in disability claims saved me countless hours of hassle at a time when an already fragile state existed.

Thank you Mr. Palamara and Danielle.

Sandra B. (Arkansas)

I have nothing but good things to say about how my buyout was handled with my disability claim. The level of professionalism was amazing. All of my questions and concerns were answered either by Danielle L. or Alex P. in such a timely manner and with such care I would recommend them in a heartbeat to anyone needing to approach their provider with buyout options.

They did a fantastic job communicating between the provider and me, always keeping my best interest at heart and always answering my many many questions. They really did take most of the stress out of this whole situation. I would give them a 10 out of 10 for every step of this crazy journey. Thank you so much for helping me through this.

Brenda R. (New York)

I needed assistance with an appeal for a LTD claim that was initially denied. Stephen understood what needed to happen to win the appeal and he did win the appeal for me.

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