How Production Pay is Counted Toward the Maximum Coverage Available

In this episode of the Cover Your Assets podcast, host Billy Gwaltney discusses the intricacies of disability coverage for physicians, particularly focusing on how production pay impacts the ability to secure additional coverage. He explains the importance of guaranteed income, the role of tax returns in calculating coverage, and the nuances of underwriting individual situations. The conversation emphasizes the need for physicians to understand their income structure and how it affects their disability insurance options.

Takeaways:

• Production pay is counted once it is earned and documented. Details in income documentation are critical for underwriting.
• Guaranteed income is the starting point for calculating coverage.
• Higher income may require more documentation for coverage.
• Consulting and outside income can contribute to disability coverage.
• Bonus pay may need a history of two years for full credit.
• Tax returns play a crucial role in determining coverage amounts. Without a tax return, only 60-70% of income may be counted.