Disability Insurance for Attorneys
Considering disability insurance for yourself or your law practice? Consider the facts.
- Your most valuable asset is your ability to bring in an income. For attorneys like yourself, your future income is your payoff for all of your years of hard work and accumulated debt.
- Your student loans do not go away if you become disabled.
- Attorneys are in the best occupational class with the best available rates. If you change occupations or no longer practice law, you will continue to pay at the best rates and will be covered in whatever capacity you are now working. For instance, say you purchase a policy while practicing law. After a few years, you decide to open a restaurant and no longer practice law. You will continue to pay attorney rates, but the policy will cover you if you become too sick or injured to run the restaurant.
- You may be eligible for a group rate or discounts. Depending on the company, you may be able to set up discounts if 2 or 3 people apply for a policy from the same employer.
Group benefits vs. an individual policy
If you work for a large firm or company, you may be offered a group policy. Usually you cannot opt out of taking the policy. Group policies typically offer a limited monthly benefit (60 percent of your income to a maximum amount). If your income exceeds $200k, the percentage of benefits replaced may start to reduce if you have maximum limits on the policy.
Group policies can’t discriminate – they must offer coverage to everyone in the group. Consequently, they often lack the important provisions of a personal policy.
- Your group policy may require you to be totally disabled and not able to work in any capacity before you can receive any benefit.
- The benefit may be taxable income to you if the employer is paying the premiums.
- Your employer may cancel your policy at any time.
- Even if you have a group policy, it is still important to consider supplementing with an individual policy.
- Your individual policy is portable and you may take it with you if/when you leave your employer.
- The policy definitions on an individual policy are usually superior (own-occupation, inflation protection).
- If you are only partially disabled, your group policy may not pay you.
- Having an individual policy protects your insurability by purchasing increase options. If your health changes, you may still purchase more coverage in the future based only on financial underwriting.
If you are concerned about paying for your disability insurance while getting established, there are several things we can do to reduce your premium as much as possible.
- Some companies allow a “graded” or increasing premium. This is initially less expensive and your premium will increase each year. If you wish to lock it in at a later time, you may do so on any policy anniversary.
- You may choose to simply supplement what your group policy already offers and load up your policy with increase options. This will allow you to keep your premium low during residency and still reserve the right to increase it in the future without any medical underwriting.
- Are You Prepared For a Disability?
- Disability Insurance Policy Provisions
- Individual vs. Group Disability Insurance
- Disability Shopping Tips
- Available Discounts
- Disability Insurance Process
Get Attorney Disability Insurance by requesting a free quote today!