Disability Insurance - Physician Contract Glossary

Disability Insurance

Definition

A benefit or policy that provides income replacement if you become unable to work due to illness or injury.

Examples in Context

“Employer shall provide short-term disability coverage with a 30-day elimination period and coverage of up to 60% of the physician’s base salary.”

“The Employee may elect to enroll in long-term disability insurance, which offers benefits after a 90-day elimination period with monthly payments capped at $10,000.”

Implications for Physicians

• Protects against loss of income during medical absences.
• Essential for physicians who rely heavily on earned income.
• Long-term disability may require additional coverage to maintain standard living expenses.

Negotiation Tips

• Ask who pays the premium. If you pay, benefits are typically tax-free; if your employer pays, benefits may be taxable.
• Request clarification on the elimination period (how long you must wait before benefits start).
• Confirm if coverage includes partial disability or only total disability.

Red Flags and Pitfalls

• Limited benefit periods that stop coverage after a certain number of years.
• Low monthly caps that may not meet your income needs.
• Complex definitions of "disability" that are difficult to qualify for.

Related Terms

• Death and Disability Termination
• Summary Plan Description (SPD)

FAQs

• What is the difference between short- and long-term disability?
  • Short-term disability typically covers illnesses or injuries lasting a few weeks to a few months. Long-term disability starts after a waiting period and may provide income for several years or until retirement.
• Are disability benefits taxable?
  • Yes, if your employer pays the premium. If you pay the premium with after-tax dollars, your benefits are generally tax-free.
• What is an elimination period?
  • The elimination period is the time you must wait after becoming disabled before benefits begin. Typical periods are 30, 60, or 90 days.

Legal Disclaimer

The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.

For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.

You can find experienced legal professionals through our Physician Contract Lawyer Directory.