Residual disability is defined in your long term disability insurance policy. Residual disability is also referred to as partial disability. This definition can vary from policy to policy. Two commonly used definitions include loss of income and loss of time/duties.
Loss of income is when you have suffered a residual disability and can still perform the material and substantial duties of your occupation, but you have suffered a loss of income of at least 20%. The long term disability insurance company will stop paying your claim when your loss of income is less than 20%.
Loss of time and duties is when you have suffered a residual disability and can still perform the material and substantial duties of your occupation, but you have suffered a loss of time and duties. The long term disability insurance company will stop paying your claim when you are back to working full-time.
