Lawyers require as much, if not more, lawyer disability insurance than any other profession.
When you think of people who need long-term lawyer disability insurance, you probably think of people who do a lot of physical work and need help making ends meet. You probably don’t think about lawyers.
But lawyers need disability insurance as much, if not more, than any other profession because of their investment, income potential, and disability risk.
Why Lawyers Need Disability Insurance
Becoming a lawyer can make you a lot of money, but it’s also a significant upfront investment. You need a college degree, then a law degree, and then you have to work to pay the tuition. According to U.S. News & World Report, the average cost of a state law school in 2016-2017 was more than $26,000 per year. The average tuition for the top 10 law schools is more than $60,000 per year. This is in addition to the usual tuition fees.
Lawyers are heavily in debt before taking on their first case. Considering that the same study by U.S. News & World Report showed that the average starting salary for private sector law graduates is well below $100,000, it takes time to pay for itself, but you can’t do it without a job.
Fortunately, because of their future earning potential, law students and new attorneys can get more disability coverage than insurance companies typically allow. Because the earlier you get long-term disability insurance, the cheaper it is, and you can make big bucks by protecting your policy throughout your career. (A lawyer usually gets the best price anyway. There’s no reason not to buy.)
Even if the legal profession is an employee, there is still a risk of disability. According to the Disability Awareness Council, 90 percent of disability is due to illness rather than injury. Even if law books are the heaviest thing you lift, lawyers can still benefit from disability insurance.
Best lawyer disability insurance
Lawyers should work with licensed agents to ensure they are working with the firm and policy that is best for them. Below is a sample list of the best attorney disability insurance rates by cost.
| Company | 30 years old | 40 years old | 50 years old |
|---|---|---|---|
| Ameritas | $110.76/mo | $1,281.40/yr | $176.76/mo | $2,048.80/yr | $271.65/mo | $3,152.20/yr |
| Assurity* | $125.90/mo | $1,447.20/yr | $211.45/mo | $2,430.35/yr | $281.55/mo | $3,236.69/yr |
| Guardian | $104.56/mo | $1,254.55/yr | $159.50/mo | $1,914.00/yr | $241.22/mo | $2,894.62/yr |
| Principal | $123.09/mo | $1,405.80/yr | $185.53/mo | $2,119.05/yr | $274.26/mo | $3,132.45/yr |
| The Standard | $127.51/mo | $1,457.30/yr | $184.84/mo | $2,112.47/yr | $276.88/mo | $3,164.31/yr |
| MassMutual | $105.19/mo | $1,237.20/yr | $162.26/mo | $1,896.88/yr | $260.81/mo | $3,036.20/yr |
| Mutual of Omaha** | $126.80/mo | $1,449.00/yr | $190.48/mo | $2,176.77/yr | $291.59/mo | $3,332.41/yr |
*Non-cancelable policies not available
**Until age 67; non-cancellation policy not available
These sampling rates are based on a monthly benefit of $5,000 for male non-smokers in New York. The maximum benefit amount will depend on your gross income and any other group or individual plans you have. They relate to self-employment with a 90-day blackout period, benefit period at age 65 and some remaining benefits, future purchases, non-cancellable and auto-increment benefits (unless otherwise stated).
What Lawyers Need to Know About Disability Insurance
So what should attorneys consider when purchasing disability insurance?
First, familiarize yourself with the definition of self-employment in your program. If you can’t do your own job (lawyer), you can still get benefits, even though you can still work in another capacity. Knowing what your policy says about your occupation can make a big difference in the benefits you receive.
While many companies don’t have group plans, larger companies may. It’s important to check this because some plans have maximum benefits of up to $5,000 or $10,000 per month, which may not be enough to replace your income. These benefits are taxable when your company pays the premiums for your policy. A supplemental policy can help narrow your coverage and make up for tax losses on your employer policy.
Buying your policy early makes it more affordable, and future purchase options allow you to add more coverage later without additional coverage. This gives you the flexibility to switch companies or become self-employed without having to worry about your disability coverage being tied to your current employer.
To pay off student loan bills you may have, a student loan tab can help. It adds some benefits to paying off student loans, usually around $2,000 a month, directly to the loan provider. Learn more about how disability insurance can help prevent student loan debt here.
A residual or partial disability plan is essential if you work billable hours. This means that if you can work but with reduced hours or income, you can still receive limited benefits.
Lawyers invest so much time and money in their profession that they don’t get a chance to do it. Long-term disability insurance is the perfect way to ensure you reach your potential and have a successful career, no matter what happens along the way.
