Guardian's Residual Disability Insurance Rider

Explanation Of Terms

Residual Disability Benefit Rider

Residual disability or residually disabled means that you are gainfully employed and are not totally disabled under the terms of the policy but, solely because of sickness or injury, your loss of income is at least 15% of your prior income.

Residual Disability Benefit
When you are residually disabled, we will pay a monthly benefit as follows:
- You must become disabled while the policy is in force.
- You must satisfy the elimination period.
- After you have satisfied the elimination period, a residual disability benefit will be payable at the end of each month while you are residually disabled.

For each of the first 12 months that you are eligible for a residual disability benefit in the same claim, we will pay a loss of income indemnity. The loss of income indemnity is equal to your loss of income less any individual disability insurance benefits you are receiving, or that you are eligible to receive from us and all other insurance companies on policies that are in force on or before the effective date of this rider. In no event will the loss of income indemnity exceed your monthly indemnity.

If you continue to be residually disabled in the same claim after the loss of income indemnity has been paid for 12 months, we will pay a residual indemnity. The residual indemnity will be payable monthly and will be a percentage of the monthly indemnity.

Residual indemnity will be determined by the formula (a) divided by (b) multiplied by (c) where:

(a) is your loss of income for the month in which you are residually disabled; and
(b) is your prior income; and
(c) is the monthly indemnity.

If your loss of income is more than 75% of prior income in any month of residual disability while residual indemnity is payable, we will deem such loss to be 100%.

We will not increase the residual disability benefit because you are disabled from more than one cause at the same time.

Disability Insurance Quotes

Call 888-513-2300

Financial Balance Group LLC is a general agency of The Guardian Life Insurance Company of America, NY, NY. Guardian Disability Insurance Brokerage is the brokerage arm of Financial Balance Group LLC. Disability insurance agent information provided on this web site is for broker use only. For important information about the disability insurance products and insurers discussed on this page, as well as information concerning Guardian Disability Insurance Brokerage or the General Agency representing Guardian, please click here.
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