Many long term disability insurance claims for medical practitioners end up in the form of a residual claim. The term residual disability means you are partially, not totally disabled, and you may still actively engage in your own occupation.
Residual benefits are usually triggered by loss of time or duties, or loss of income, or both.
Here’s how this works:
Some insurance policies permit insureds to work part-time or work at a lighter duty job because, due to illness or injury, they are unable to work at full capacity. A medical or dental practitioner can remain eligible for limited disability benefits while working in a limited capacity.
If not part of your base policy, you may have purchased a supplemental rider to provide this coverage. To meet eligibility for residual disability benefits, the policy will generally require the following:
- You are able to perform some but not all of the substantial and material duties of your regular occupation – or –
- You are able to perform all of the substantial and material duties of your regular occupation, but not as effectively or for as long a time, as just before your impairment.
- You make a certain percentage less than your regular salary. This is usually 20 percent below regular indexed monthly earnings, but some will go down to only 15%.
- Insureds are required to be under the regular care of a suitable physician.
Residual disability offers a more liberal definition than partial disability, because benefits generally can be paid without prior total disability. Residual disabilities can be the initial impairment, or might happen over time or as part of the recovery process.
Your policy will provide its own definitions for Total and Residual disability and the specific requirements for each.
Are you considering a Claim for Residual Disability Income?
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If you think you may be able to work part-time and plan on filing for residual benefits, you must fully understand the manner in which a residual or partial disability income claim is calculated. Your policy may include proportionate benefits, or benefits based on total loss of income, or recovery benefits and other payment structures.
The type of benefit and the period available requires experienced review and consideration. There are many caveats to be aware of, and often strategic steps you can take to maximize the benefits payable under a residual disability claim.
Our firm can help. Call 800.562.9830 to schedule a free case evaluation with one of our doctor disability claim lawyers.
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