THE LIFE, OF A SELF-EMPLOYED SOLICITOR

As a practice owner you don’t hesitate to insure physical assets in your business such as computers and office equipment. However, often overlooked is the importance of insuring yourself or other key people in the business against the risk of death, disability, illness or injury. This can be a very risky oversight, as the long term absence or loss of a key person can have a dramatic impact on a business and each owners’ interest in the business.

If sickness or injury meant you had to take time off?  What would happen to your income? How would you know your business was in safe hands?

Insurance is the cornerstone of a comprehensive financial plan and can help to reduce the financial impact of events beyond your control. The key to good protection is to provide the necessary amount of funds to the relevant people at a time when they need it most. This can be done through insurance.

An appropriate personal insurance strategy can help you:

  • Maintain your standard of living if you have to stop working due to illness or injury.
  • It can help you to meet your mortgage, car and other debt repayments and reduce financial pressure allowing you to focus on your recovery and return to work.
  • Reimburse you for ongoing business expenses which will inevitably continue if you cannot work
  • Assist with continuity of business income if a key-person is lost due to death, illness or injury
  • Cover yourself against medical expenses and rehabilitation costs associated with critical illness
  • Provide family protection to ensure your debts are covered if you die or cannot work again
  • Preserves your business if a business owner/partner dies or is permanently incapacitated

At Lawyers Life we regularly review your insurance portfolio so that as your career progresses and your practice grows, your insurance strategy remains appropriate to your changing needs.

WHAT’S IMPORTANT – SELF-EMPLOYED SOLICITOR

INCOME PROTECTION

  • 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

You have a number of fixed expenses in order to run your practice that won’t go away just because you are out of action for a period of time.
If you’re responsible for generating revenue for the firm, then meeting these expenses can be a challenge.
It’s important that if you’re out of work for a while, you can continue to comfortably meet these expenses while business revenue is reduced.
Business Expenses Insurances is designed to pay for these fixed expenses for a period of time until you can return 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