THE LIFE, OF A PARTNER IN PRIVATE PRACTICE

You’re a Partner in a mid or top tier Law firm. You are generating a high income that supports and underpins your family’s current and future lifestyle aspirations.

Your hard work in establishing and retaining important client relationships and your billing capacity allows you to earn the income that you do.

Your ability to stay healthy and continue to deliver this output, particularly over a period of time is therefore in all likelihood your biggest financial asset. More significant than your house, super or share portfolio.

Do you have your most important asset covered and if so is it arranged in the best and most appropriate way specific to your role?

WHAT’S IMPORTANT – PARTNER OF A LAW FIRM?

INCOME PROTECTION

It is quite likely your firms Partnership Deed details the cessation of income after a period of time out of work due to illness or injury. It’s important that you have a plan in place to replace that income once that period ends. When considering income protection for Partners at Law firms, these are often the things that we see as important:

  • 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.
  • 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
  • You may be a part of a group income protection plan provided by the firm. Understanding what you are covered for and what options you have should things change is important.
  • Is your insurance portable if you choose to leave the firm or if the firm decides to end the plan. This is commonly referred to as the Continuation Option.
  • Are you happy with the terms and conditions of the plan, after all it is your income that is at stake.
  • Does your waiting period of your policy match the firms agreed position on continuation of profit draw in the event you are unable to work?

LIFE INSURANCE

It’s quite likely that you are 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 – i.e. this might mean a level of insurance that will allow them to replace your 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?

TAX EFFECTIVENESS

You’re no doubt paying more tax than what you would like. Are your policies structured in such a way that allows for maximum deductibility of the premiums?

 

LONG TERM AFFORDABILITY

If it is likely that you will hold some of your insurances for the next 8 years or longer, have you explored level premiums to manage the cost of your insurances over the long term.

Contact LAWYER’S LIFE