What is the definition of Residual Disability Insurance?
Residual Disability Insurance provides income payments in the event of the insured person's residual disability. This involves monthly payouts aimed to replace the lost income of the insured person. The benefit payouts are computed using a percentage of the policyholder's present income.
This kind of insurance is used for life and health insurance products, as well as for protection for creditors that issue credit cards, mortgages and car loans. In the case of financial agreements for loans, the payouts will be given to the lender. Residual Disability Insurance may also be used to protect a policy itself, so that in event of the person's residual disability, the insurance will kick in to pay for the premiums.
It is also called income protection insurance.
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- Residual Disability
- Residual Market
- Retention
- Retrocession
- Retrospective Rating
- Return on Equity
- Revocable Beneficiary
- Rider
- Risk
- Risk Management
- Reserves
- Repurchase Agreement / Repo
- Replacement Cost
- Renters Insurance
- Renewable Term Insurance Policy
- Relation of Earnings to Insurance Clause
- Reinsurance
- Reinstatement
- Registered Representative
- Registered Principal