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What is a Residual Rider?

This rider can be one of the most valuable riders attached to a policy. It determines a payout based on a partial disability vs. a total disability. From a look at claims, the majority of disabilities are partial. Meaning, an individual can still work in their occupation, but they may suffer a loss of income.


Here are a list of top reasons to add a Residual Rider:

  • If your clients can work only part time, they’ll still need their full-time incomes. If a policyowner becomes sick or injured but is still able to work part time, a residual disability benefit can help fill the resulting income gap.

  • Policyowners on disability claim may need to return to work slowly, working part time as they recuperate. Some policyowners collect total disability benefits at first and then receive residual disability benefits. This allows them to work part time as they regain their health — and still collect benefits to offset lost income.

  • The recovery benefit can keep your clients’ incomes whole if they still suffer an earnings loss after returning to work full time. This benefit is for policyowners who return to work for as many hours as worked before the disability, but still suffer an earnings loss of at least 15-20% due to the previous injury or sickness.

Another point to consider is, what if you are out on a claim and the company has filled that position before you are healthy enough to go back to work?

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