When institutions change, your most valuable asset—your earning power—deserves an immediate checkup. The Penn–Doylestown transition meaningfully alters employer provided long term disability (LTD) benefits. Here’s a focused, practical guide to make sure your household is protected.
Why This Matters
If illness or injury keeps you from working, disability insurance replaces a portion of your income so your mortgage, tuition, and everyday expenses are still covered. For higher earners, plan caps—not percentages—determine how much actually reaches your bank account. Small policy differences can translate into large monthly gaps.
Key change to note: Doylestown LTD replaced 60% of salary up to $6,000/month; Penn LTD replaces 60% up to $15,000/month. For physicians and executives, that higher cap can materially narrow the gap.
Quick Math: Find Your Gap
Use this to estimate how much protection you’ll really receive—and whether you need supplemental coverage.
| Salary | 60% Target Monthly Benefit | Doylestown Cap Paid | Gap (Doylestown) | Penn Cap Paid | Gap (Penn) |
|---|---|---|---|---|---|
| $300,000 | $15,000 | $6,000 | $9,000 | $15,000 | $0 |
| $400,000 | $20,000 | $6,000 | $14,000 | $15,000 | $5,000 |
| $500,000 | $25,000 | $6,000 | $19,000 | $15,000 | $10,000 |
Target Monthly Benefit = Salary × 60% ÷ 12. Your goal is to shrink the gap to a level your family can comfortably absorb.
Timing Matters in a Merger
- If you need private DI to cover any remaining gap, apply early. Eligibility and underwriting can tighten once employer coverage changes.
How to Right Size Your Disability Protection
- If you’re underinsured: Add supplemental private DI (own occupation, specialty specific where applicable). Prioritize policies with residual/partial benefits so claims pay if you can only return parttime.
- If you’re overinsured post-transition: If Penn’s higher cap now covers your need, consider trimming expensive private policies to free up cash—without leaving a gap.
- Coordinate reserves with policy design: Hold 6–9 months of fixed expenses; match your reserve target to the elimination period (e.g., 90 days) so cash covers the waiting period.
Policy Features to Confirm (Don’t Skip the Fine Print)
- Definition of disability: True own occupation (ideally specialty specific for physicians).
- Elimination period: Commonly 90 or 180 days—confirm and set cash reserves accordingly.
- Residual/partial benefits: Protects income if you can work at reduced capacity.
- Portability/convertibility: Keep coverage if you change employers.
- COLA rider: Inflation adjustment on long claims.
These details determine real world protection—not just the headline percentage.
How Rockwood Helps (Fiduciary, No Insurance Sales)
Rockwood is a fee only fiduciary. We don’t sell insurance and don’t receive commissions. Our job is to sit on your side of the table and make sure you get the right protection at the right cost. Practically, that means we:
- Calculate your true income protection need and model the gap after employer LTD caps and taxes.
- Coordinate employer coverage with independent, portable private policies only when needed.
- Partner with best-in-class independent insurance agents to shop multiple carriers and policy designs; we vet contract language (own occupation, residual, COLA) and pricing while keeping conflicts out of the room.
Sam is committed to delivering comprehensive, conflict-free financial advice to individuals and their families. He joined Rockwood in 2016 and brings more than 15 years of experience guiding physicians at both the University of Pennsylvania and Doylestown Hospital. Today, he leads Rockwood’s initiative to support physicians and executives as they navigate the financial transitions brought on by the UPenn merger. Sam lives in Buckingham with his wife, Ellie—a physician now practicing at Doylestown after many years at UPenn—and their two sons.