Disability Income✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
A residual disability rider provides benefits when the insured:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A residual disability rider pays a benefit when the insured returns to work, full or part time, but earns less because of the disability. The benefit is typically proportionate to the percentage of income lost, so an insured earning 40 percent less receives roughly 40 percent of the total disability benefit. Residual coverage bridges the gap between full disability and full recovery, encouraging rehabilitation and return to work. It is one of the key modern riders in disability income insurance and is distinct from a total-disability-only provision.
Why the other options are wrong
- B) An insured unable to work at all is totally disabled; residual coverage is designed for partial loss of income while working.
- C) Unemployment unrelated to health is not an insured event under a disability policy.
- D) Early retirement is not a disability; residual benefits require an income loss caused by a covered disability.
Memory hook
Residual = back at work but earning less. The check shrinks with your income loss.