Disability insurance for attorneys
Direct answer
Attorneys should hold an individual policy that defines disability by their own occupation and counts the income they actually earn, because firm plans often cap the benefit, may leave out bonuses or partner distributions, and end when you change firms. Partners should confirm how the policy measures income that arrives as a share of firm profits.
Key facts
Check first
- Whether bonuses and distributions count as income
- How the policy defines your occupation
- Whether the firm plan ends when you leave
Must-have features
- Own-occupation definition
- Non-cancelable and guaranteed renewable
- Residual and partial disability rider
- Future increase option
Common pitfalls
- Relying on the firm plan alone
- Mental nervous limits of 24 months
- Income documentation that misses variable pay
- Coverage that stops at a firm change
What is different for attorneys
Legal work depends on concentration, judgment, and stamina more than on physical ability. That makes mental health and cognitive claims a larger share of the risk, and it makes the contract’s limits on those claims worth reading closely.
Variable income needs careful documentation
Associates are often paid a salary plus a bonus; partners are paid from firm profits. Carriers decide how much coverage you can buy from the income you can document, so a year with an unusual bonus or a new partnership agreement can change what is available.
Firm plans stay with the firm
Group coverage through a firm usually ends when you leave, and a new firm may have different terms or a waiting period. An individual policy keeps the same terms through a lateral move or a new practice.
Contract language: strong vs weak
Two clauses that both get called “own-occupation.” Read the bold words.
Strong wording
“Totally disabled means that, solely due to injury or sickness, you are unable to perform the material and substantial duties of your occupation. If you have limited your practice to a recognized specialty, that specialty is your occupation. You may work in another occupation and still receive full benefits.”
Pays if you cannot do your own work, even while you earn in another role.
Weak wording
“Totally disabled means you are unable to perform the material duties of your occupation and you are not engaged in any other gainful occupation. After 24 months, totally disabled means you cannot perform any occupation for which you are reasonably suited by education, training, or experience.”
Stops paying once you take other work, and after two years may deny a claim entirely.
Try it with your numbers
Your group LTD gap
- Group plan pays (before tax)
- $12,000
- Estimated after tax at 30%
- $8,400
- Monthly gap to 60% of income
- $9,600
Questions attorneys ask
Have your group plan read by someone who reads them daily
Send the summary. You get a written gap analysis within two business days. No call required.