residual income


A stipulation, usually found in a disability insurance policy, which states that a portion of benefits will be paid to correspond with the insured's partial disability. For example, if the insured now earns 50 percent less due to disability, the residual income benefit would pay half of the total disability benefit.

Use residual income in a sentence

We had plenty of residual income and it made me happy because I liked having a lot of income to work with.

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The residual income stipulation or clause in the individual's policy served as an additional layer of insurance to ensure a decent quality of life.

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John Smith was dismayed to discover that he would have to learn to live less extravagantly becaise the residual income benefit for his disability would decrease his income considerably.

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residual dividend abnormal earnings valuation model