A client has a disability policy with a $3,000 monthly benefit for total disability. The client returns to work part-time, earning $3,500 per month. Their pre-disability income was $5,000 per month. If the policy has a 'proportionate' residual rider, what is the monthly benefit?

Question: A client has a disability policy with a $3,000 monthly benefit for total disability. The client returns to work part-time, earning $3,500 per month. Their pre-disability income was $5,000 per month. If the policy has a 'proportionate' residual rider, what is the monthly benefit?

Answer options:

• $3,000
• $1,500
• $1,000 ✅ $900

Correct answer: $900

Explanation: In a 'loss of income' or residual disability claim, the benefit is usually calculated as: (Loss of Income / Prior Income) x Total Disability Benefit. ($1,500 / $5,000) = 30%. 30% of $3,000 = $900.