Doctor Disability Insurance That Grows with Your Salary
A study released by the Hay Group in September 2012 shows that median base salaries are set to increase 2.9% in 2012 for employees of large integrated health systems. That’s about the same as in 2011. Hospitals reported median base salary increases of 2.4% for 2012, also about the same as in 2011. As your income increases, will your doctor disability insurance?
A breakdown by position indicates chief executive officers at nonprofit integrated health systems saw a median 3.2% shift upward in base salary for 2012 and a 3.6% increase in when annual incentives are included. Hospital CEOs were to receive a 3.0% hike in base salary, though their incentive pay has dropped. Executive benefits were also better than the general market’s. 74%a percent of integrated health systems offered long-term doctor disability benefits, compared to only 33% of the general market, and 65% offered short-term disability, contrasted to just 19% of the general market.
For nurses, hospital pay was set to rise 2.5%.
Can Disability Payouts Keep Up?
A doctor disability policy is often written with a static payout benefit, a monthly limit that is set when you buy the policy. That amount is typically 60% of your income at the time of policy inception. Without any adjustments in those limits over the course of the policy, your percentage of income covered by a doctor disability policy will fall, since your income will most likely grow. Even in a poor economy, doctors, nurses, healthcare workers and health executives are seeing substantial increases in pay. If inflation heats up, those numbers could go higher.
If you don’t want to see your physicians disability insurance payouts diminished as a portion of your salary, you need to get a rider that covers cost of living increases. A “future increase” rider usually can be added when you buy your policy. This guaranteed future insurability allows you to raise your limits of insurance payouts without undergoing requalification. It is especially valuable for those who might become uninsurable in the future.
To learn more about protecting your income for the long term and keeping benefits in line with your earnings, talk to one of our professionals. You can contact us by calling 866-899-7318 or visiting www.doctordisability.com/contact-us/.
Sources:
Hay Group’s Annual Healthcare Compensation Study Reveals Modest Base Salary Increases for Healthcare Employees in 2012