Your Law Firm has a group long-term disability program. Excellent news. However, the reality is that a significant portion of your income may still be at risk.
Group Income Protection
Many group income protection policies are inadequate. They have the following gaps and limitations:
The solution for these issues is typically an Executive Disability program or a Supplemental Individual Disability Insurance (IDI) program. Providing supplemental IDI or the opportunity to purchase supplemental IDI at a group discounted rate is a valuable and key benefit to help attract and retain top legal talent to your firm.
The firm can pay the premium for its eligible employees or offer supplemental IDI as a voluntary benefit (or the opportunity to “buy up”) at a reduced group rate. If the firm pays the premium for the supplemental IDI, the benefits are considered taxable income, significantly reducing the income benefit. If you, the lawyer, pays the premium, “buying up” or in the form of a voluntary benefit, the benefits are not taxable.
By supplementing your group plan’s LTD, highly compensated lawyers can gain an extra layer of protection that provides greater income replacement.
In addition to protecting your total compensation and closing income replacement gaps, other benefits of supplemental IDI typically include:
Your firm may also find multiple advantages and efficiencies from offering supplemental IDI, such as:
Benefits to the lawyers include:
Don’t leave your financial future to chance. We are well positioned to review your current income protection plan and help you (and your employer) develop a plan that works for you and your family. Please reach out to Chris Cahill with any questions at: Chris@TwelvePointsWealth.com or 978-318-9504.
Learn more about the importance of income insurance in Part 1 of this series.