How does Partial Disability differ from Residual Disability?

The primary purpose of having long-term disability coverage in Brantford, Cambridge, and Hamilton is to provide employers and employees is to provide protection for their income should they become ill or injured and are unable to work. The amount of these benefits oftentimes varies from one claimant to another, but all benefits are dependent upon the provisions that are lined out in each claimant’s insurance policy. While some individuals are entitled to full benefits, others will only receive partial or residual benefits. It depends on the skills of the lawyer and your injuries. If you are severely injured, the compensation amount is higher.

It’s important to understand that no two long-term disability insurance policies are ever the same. In fact, many insurers require that the person be totally disabled before they will are eligible to claim benefits. But what if a person can only work a half day and their employer is unable to accommodate their needs? Are they entitled to partial benefits or can they qualify for total disability benefits? What about residual benefits? Here is a brief explanation of how these benefits differ and how they are similar.

Partial disability benefits – may be payable to claimants who can perform some of their work duties but for the most part the stipulations are as follows:

  • cannot perform the duties of their job
  • has a qualified amount of earnings loss due to their illness or injuries (determined by the individual policy)
  • total disability may be required to qualify for benefits with some insurers during the elimination period

Residual disability benefits – sometimes, the claimant recovers gradually as not all disabilities and illnesses are permanent:

  • claimant is not required to be totally disabled by some insurance companies during the elimination period
  • has a qualified amount of earnings loss due to their illness or injuries (determined by the individual policy)
  • limited in the material and substantial responsibilities of their job

In addition to the above, there are a number of other ways that long-term disability insurance policies differ. For all intents and purposes, the amount and level of coverage as well as how beneficial (or non-beneficial) it is for the client are determined by the type of policy that is purchased.

For instance, some long-term disability insurance policies will provide you with 75% of your NET monthly income while others will provide 65% of your GROSS monthly income. Furthermore, some insurers will provide LTD benefits for a maximum of 5 years while others will pay benefits until you reach 65 years of age. In most cases, you will also find that the definition of disabled or disability can vary significantly from one insurance policy to the next.

If your long-term disability claim was denied, you should consider hiring a personal injury lawyer that specializes in these types of cases. This will give you a better chance of getting your benefits and ensure that your rights to those benefits are protected.