Many private disability policies have residual disability provisions. These clauses generally pay a percentage of your monthly benefit when you can perform some but not all of your occupational duties. So, even though you can work and earn less, you still receive a monthly benefit, albeit smaller than the full benefit. However, when your individual disability policy has both a total disability and residual disability provision, disability insurance companies often try to force your claim into a residual category even when you should qualify for total disability benefits.
The reason is clear. Total disability pays 100% of your monthly benefit while residual disability pays a portion of your benefit, thus saving the disability company money. Some policies pay lifetime benefits, but only if you are totally disabled. So the obvious savings to the disability insurance company is the difference between partial benefits payable to age 65 or full disability benefits payable for the rest of your life.
Gisonni Law Firm focuses its practice on disability claims and litigation for disabled people in New York, New Jersey and the tristate area. For an understanding of your legal rights from the perspective of a highly experienced disability attorney, call Gisonni Law Firm today.