NEW BARRISTERS

WHAT’S IMPORTANT – BARRISTER’S

INCOME PROTECTION

• It’s important that you can obtain quality income protection cover on an agreed value basis even before you have a history of income at the Bar.
• The core policy definitions are generous and flexible in the way the insurance company assesses your ability to claim and return to work without impacting your income. It’s important that you have flexibility to return to work gradually without impacting your ability to continue to claim until you are back at work full time.
• There is no dispute over the amount of money the insurer will pay you in the event of a claim
• Where appropriate, 100% of your income can be replaced in the event you are forced from work.
• Your policy is structured in the most tax effective way.
• Your insurer shares profits with you in return for your loyalty.
• You have a specialist adviser on your side should you ever need to claim.
• Your premiums are structured in the most cost-effective way so that you are comfortable with them as you get older.

BUSINESS EXPENSES

At the end of your Reading Period, You will need to move into your own chambers, or alternatively share chambers with another barrister incurring a rental expense.

In addition to this significant expense, you will be responsible for a number of other fixed expenses to run your practice such as association memberships, CPD activity, clerk fees and a number of other things that all add up and rely on you generating revenue.

It’s important that if you’re out of work for a while, you can continue to comfortably meet these expenses while your temporarily not earning an income.

Business Expenses Insurances is designed to pay for these fixed expenses for a period of time until you can return to work so that you don’t have to make drastic changes that will affect and slow down your return to practising.

LIFE INSURANCE

It’s quite likely that you are or will become the major income earner in your family. In the event of your unexpected passing, do you have sufficient life insurance in place that will leave your family in the same position they are currently in or you expect them to be in when your income increases – i.e. this might mean a level of insurance that will allow them to replace your forecasted income for as long as you are planning on working.

Other important things regarding your life insurance:

• Do you have up to date beneficiary nominations?
• Are your beneficiary nominations structured in such a way to ensure your family are not unnecessarily left with significant annual tax bills from the money you have left them?
• Would the use of child death benefit pensions allow for the tax-free payment of income streams?

Life Insurance through Victorian Bar

It is possible that you have some Death & TPD Insurance through the Victorian Bar Life and TPD Group Insurance scheme.

You should be aware of the level of cover provided, the premiums you pay and the terms and conditions of the policy.

At the time of writing (July 2018) the level of cover is $300,000 Death & TPD (own occupation).  The premiums are offered on a stepped basis meaning they increase with your age every year.  This is a group scheme and could be ended at the insurer’s discretion at any stage.

The ACT and QLD Bar Associations also have similar schemes for members.