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What is a residual or partial disability benefit and why does it matter?

A residual (partial) disability benefit pays a proportional benefit when a disability reduces your income but does not stop you from working entirely, for example if you can only work part-time or take on fewer clients. If your illness cuts your earnings by, say, 40%, the rider pays roughly 40% of your full benefit. This matters because many real disabilities are partial or involve a gradual return to work, and without this rider a policy might pay nothing unless you are totally unable to work. Some policies also include a recovery benefit that continues partial payments while you rebuild your income after returning. If your income depends on productivity, sales, or billable hours, a residual rider is one of the most important features to insist on.

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