How does the Residual Disability Benefit differ from Partial Disability Benefit?

The Residual Disability Benefit is designed to provide financial support based on the reduction in income that a policyholder experiences due to their disability, rather than simply the hours they are able to work. This aspect is crucial because it recognizes that an individual may be able to work part-time or at a reduced capacity but still face significant financial challenges because their income does not match what they were able to earn before the onset of the disability.

This benefit calculates the amount of payment based on the actual income loss resulting from the disability, providing a more accurate form of support tailored to the individual's experience. In contrast, a Partial Disability Benefit may not account for income fluctuations and could be more rigid in how it defines and pays out benefits. Thus, this distinction highlights why the income-driven nature of the Residual Disability Benefit effectively serves the needs of those who have experienced a decline in earnings due to disability, even if they continue to work in some capacity.