Which rider addresses loss of income after returning to work due to a covered disability?

• A. Recurrent Disability (Provision)
• B. Partial Disability Rider
• C. Elimination (Waiting) Period
• D. Residual Disability Rider

Answer: (D)

The main concept is how disability income insurance can continue to replace earnings even after you’ve returned to work, if your earnings are still reduced because of the disability. A residual disability rider is the feature that does this. It pays a prorated portion of the monthly benefit whenever you return to work but your income remains lower than your pre-disability earnings due to the covered condition. In other words, the amount you receive is tied to how much income you’re losing compared to what you earned before the disability, up to the policy’s limits.

This is different from a partial disability rider, which also covers limited work capacity, but the residual rider specifically addresses ongoing income loss after returning to work. It’s also distinct from the elimination period, which is just the waiting period before benefits begin, and from a recurrent disability provision, which covers new disabilities that occur after a period of improvement. So the residual disability rider best fits the scenario of continuing income support after you’ve gone back to work but aren’t earning your full pre-disability wages.