In the current economic climate, being a lawyer is a hot choice for a profession. With mergers and acquisitions and large deals reaching $10 billion, lawyers are charging top dollar for their services. It isn’t just the big law firms that are in the big games, however. Jennifer Smith, in her article for the Wall Street Journal, reveals how small law firms are also getting a piece of the pie:
The figures are based on an analysis of $15 billion in legal fees by CounselLink, a legal software business in the software division of LexisNexis. The report reviewed billings for 154 U.S. companies with revenues ranging from less than $1 billion to more than $10 billion.
Law firms with 501 to 750 lawyers took in 52% of high-value work and 37% of total M&A fees billed to those companies last year. By contrast, larger firms with 750-plus lawyers accounted for 29% and 30% of fees, respectively.
With skilled lawyers from big and small law firms alike working on these profitable cases, there is an opportunity for insurance brokers and financial professionals to jump in and offer small law offices small business disability insurance plans provided by Source Brokerage, Inc. Disability income insurance can provide surety to high-income attorneys that in the event they are knocked out of action—whether by accident or illnesss—their income is protected and their future is secure.
As a broker, how would you sell the idea of disability insurance to a lawyer? Whether the lawyer is just beginning his career or already a senior partner in the firm, he will always feel confident that he will be able to maintain his high income. A broker who understands the unpredictability of fate can raise the possibility of a disabling illness or injury and the loss of income that could occur from this type of unexpected event.
In 2011, for example, a 20-year-old had a 30% chance of being declared unable to work for at least six months due to injuries, according to Social Security Administration. Six months is a long time for anyone to go without a paycheck. It would be bad news for a disabled lawyer who could have closed dozens of deals during that period. And for young lawyers who have invested a lot in their education, usually through student loans, any interruption of their income is a major disruption.
Disability insurance can provide both a sense of security and real income when the unexpected happens. Depending on the plan chosen, a disabled lawyer could start receiving checks after a 3-6 month waiting period, and it would continue until he reaches the age of 65, or until he returns to work.
(Source: Smaller Law Firms Get More M&A Work, Wall Street Journal, August 5, 2014)