November 12, 2025

[REPLAY] Choosing the Best Residual Disability Rider for your Clients from Ameritas

Ameritas Life, Disability Income, Recorded

Recorded 11/11/2025

This session will provide a deep dive into the three Residual Disability riders available on DInamic Cornerstone policies in approved states. We will discuss the features of each rider, the ins and outs of how they work and provide specific examples so you can feel comfortable offering the best options for clients’ needs.

We are excited about the increased flexibility Cornerstone offers you and your clients. The availability of these riders allows us to compete more favorably against other carriers and can help you design income protection plans that meet the various needs of your clients.

I am attaching our Cornerstone specimen policies that include the actual rider language along with our client approved flier outlining the features and differences of the Enhanced Plus, Enhanced and Basic Residual Disability riders. As I mentioned, we are working to finalize the case study and the Enhanced Plus residual spotlight pieces that show examples of how these riders work. We will promote those as soon as they’re complete.

Since we can’t yet share the actual pieces we covered in the session, I wanted to add some of the detail I covered regarding how we determine the residual monthly benefit as well as the example of how the Return to Work Incentive in the Enhanced Plus Residual Disability rider can further benefit the clients who elect it on their policies.

Residual Disability Benefit Calculation:

Residual Monthly Benefit = Loss of Monthly Earnings / Prior Monthly Earnings X (times) Base Monthly Benefit

Using the example of Barry who was earning $200,000 annually ($16,667 monthly) prior to disability and has a policy for $9,700 monthly benefit and the Enhanced Plus Residual rider:

He’s now working three days per week due to his heart condition (loss of time).
His income has dropped by 40% – this equates to an $80,000 annual loss of earnings / 12 months = $6,667/monthly loss of earnings.

$6,667 Loss of Monthly Earnings / $16,667 Prior Monthly Earnings = 40% x $9,700 Base Monthly Benefit = $3,880 Residual Monthly Benefit.

Return to Work Incentive Calculation

The Return to Work incentive allows us to replace up to 100% of the monthly lost earnings for the first three months that benefits are payable, not to exceed the base monthly benefit.

His loss of monthly earnings, as stated above, is $6,667. This is less than his base monthly benefit of $9,700. So for the first three months of residual disability payments, he will receive $6,667 – NOT the $3,880 we calculated previously.

Month 1 = $6,667
Month 2 = $6,667
Month 3 = $6,667

But keep in mind….the Enhanced Plus Residual Disability Rider also guarantees a minimum benefit for the first six months of 50% of the base monthly benefit. Obviously the first three months with the Return to Work Incentive are higher than 50% of the base monthly benefit. But what about months 4-6?

One half of the base monthly benefit: $9,700 / 2 = $4,850. So that is what is payable in months 4, 5 and 6.