[Health Insurance] 31, Residual and Partial Disability Benefits
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
In this episode you will learn:
Residual disability benefits are triggered by a loss of income, with payments proportional to the percentage of earnings lost.
Partial disability benefits are paid when an insured can perform some, but not all, of their essential job duties, often for a flat percentage and a limited time.
The exam tests your ability to distinguish the two based on keywords: "loss of income" points to residual, while "inability to perform duties" points to partial.
Benefit calculations are a key difference: residual is a variable percentage based on income loss, while partial is typically a fixed 50% of the total benefit.
A helpful mnemonic is: "Residual is for Reduced Revenue" and "Partial is for Performing Part of the job."
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