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Case Studies
Early Career
Ashley
“I’m glad I have ABE-sponsored insurance because it’s early in my career and I want to put the right financial foundation in place now and begin planning for my future.”
Profile: Associate at a Large Law Firm
Graduated from law school 3 years ago
Age: 27
Married with one child
Situation: Ashley works with a large law firm and has been an associate for 3 years. She is excited about her career and her earning power. Her financial goals at this stage are to pay off her existing college and law school debt, car loan, credit card debt, and to purchase her first home, as well as to build the foundation for both wealth management and financial protection. Ashley also wants to have insurance that is portable, so if she were to change jobs, she would be able to keep the insurance coverage to support her spouse and child. Since ABE-sponsored plans are portable, they are a perfect fit for Ashley.
Solution: Life Insurance – While Ashley’s firm provides life insurance, it did not provide enough to cover 8 to 10 times her salary--a standard multiple used to determine an adequate insurance level. Ashley supplemented her firm-sponsored insurance with $300,000 in additional ABE-sponsored life insurance. At this stage in her life, she named her spouse as beneficiary so he would not be burdened with any debt while paying off their home and continuing to fund their child’s education.
Disability Income Insurance – Ashley’s firm also provides a modest disability insurance policy, which she supplemented with the ABE-sponsored disability program. Together, these policies provide Ashley with the assurance that she will still be able to continue to support herself in the event that she could not work due to a disability.
Notes: For many attorneys, ABE insurance acts as a supplement to company-provided/sponsored insurance they may already receive. You may insure up to 66?% of your earned income in ABE-sponsored disability plans.
Bradley
“Having a child opened my eyes to the importance of protecting my family financially. I’m glad I have ABE-sponsored insurance because it helps me rest assured that my family is protected, and the gains I’m making in my career will create long-term security for us.”
Profile: In-House Attorney in a City Law Department
Graduated from law school 7 years ago
Age: 32
Married with one child
Situation: Bradley recently moved from a small boutique law firm to an In-House Attorney position in the corporate counsel department of a mid-sized company. With a wife who just “retired” from her job to take full-time care of their young son, he is creating a career track for himself with his new position. He and his wife recently purchased a home and have plans to have two more children.
Solution: Life Insurance – with a young child, plans for more and a spouse who wants to stay home to care for their children, Bradley may need a lot of life insurance. He added to his company-sponsored life insurance with additional ABE-sponsored insurance. The added ABE-sponsored coverage helps to ensure that his family will be taken care of if Bradley were not there. Funds would be available to help maintain their home, support his wife and children and pay for his children’s college education.
Disability Income Insurance – as the sole worker in his family, Bradley added to his work-sponsored disability plan with additional ABE-sponsored insurance. With a higher level of disability income, the family will be able to better maintain their current lifestyle if Bradley were to be unable to work due to disability from an accident or illness. You may insure up to 66?% of your earned income in ABE-sponsored disability plans.
Accidental Death and Dismemberment – because Bradley travels for his job, he felt that adding ABE-sponsored AD&D program would provide additional security for him and his family at a cost lower than additional term life insurance.
Sarah
“My life is changing as I age, and I’m glad I have ABE-sponsored insurance to help me through the transitions. As I make choices in my life, it’s a comfort to know that I can be protected as well as give back to my profession through ABE-sponsored insurance plans.”
Profile: Part-time attorney at a non-profit organization
Graduated from law school 10 years ago
37
Married, two children
Situation: Sarah recently went to a part-time position to spend more time with her school-age children as well as to be in a less stressful environment; she suffers from chronic fatigue syndrome. Her husband works full time as an engineer. Within the last year, Sarah’s parents died and left her a substantial inheritance.
Solution: Excess Major Medical and Hospital Indemnity Plans – given Sarah’s health and the possibility that it could worsen, she is glad she purchased the ABE’s Excess Major Medical and Hospital Indemnity plans while she was healthy and able to get the coverage she needs. These important plans provide additional coverage that may be critical if she is hospitalized or her illness gets worse. Plus, Sarah qualified for the Hospital Indemnity plan regardless of her current health—a great benefit of the plan.
ABE Charitable Gift Fund (Donor Advised Fund) – as an attorney at a non-profit organization, Sarah is committed to giving back to her profession. With her new inheritance, she can now receive immediate tax benefits by opening an ABE Charitable Gift Account and support both her, the legal profession, and her other favorite charities. What Sarah likes best about the ABE Charitable Gift Fund is that the ABE takes care of the paperwork and check writing, saving Sarah time.
Mid-Career
Gwendolyn
“I’m glad I have ABE-sponsored insurance because it gives me control over my financial plan and insurance benefits. With teenage children in my household, I want to be sure I am doing everything I can to build a solid protection plan.”
Profile: Associate General Counsel, Large Corporation
Graduated from law school 20 years ago
47
Divorced, three children
Situation: Gwendolyn has been an attorney at the same company since she graduated from law school 20 years ago and she loves her work. When she divorced 10 years ago, she told herself that she needed to be more conscious of financial decisions that would now affect herself and her children. She recently quit smoking and is making a number of changes in order to achieve a more healthy lifestyle, particularly in light of her family history of diabetes and heart disease.
Solution: Supplemental Life Insurance and Disability Insurance – although her company provides a generous life and disability package, Gwendolyn wants to have more than sufficient insurance to help protect her family should she die prematurely or be unable to work due to a disability. Gwendolyn also wants to purchase these plans while she is healthy and able to get coverage. You may insure up to 66?% of your earned income in ABE-sponsored disability plans.
Accidental Death and Dismemberment – because Gwendolyn travels for her job, she felt that adding ABE-sponsored AD&D program would provide additional security for her and her family if she should die of an accident while traveling or at home.
Robert
“I’m glad I have ABE-sponsored insurance to supplement what my firm provides. As a lawyer in mid-career, it is vitally important for me to protect all that I have built, and the ABE programs help me do this.” Robert uses a portion of his income to support his parents. It is important to him that his income allows his parents to live a more comfortable life as they age.
Profile: Partner in a 5-person law firm
Graduated from law school 22 years ago
45
Married, two children
Situation: Last year after many years in private practice with a large law firm, Robert and several colleagues started their own employment law practice. With a stay-at-home wife and two young children, Robert was very concerned about continued growth in his earnings. Now, with partners, associates and staff, his responsibilities and liabilities have increased and he wants to make sure all aspects of his family and his business are adequately protected.
Solution: Office Overhead Insurance -- ABE-sponsored Group Office Overhead Expense Plan will help protect Robert’s practice and assets. If he were totally disabled by an accident or illness, the ABE-sponsored Group Office Overhead Insurance could help keep his practice operating by paying staff salaries, rent, etc. when he is unable to work.
Retirement Contribution Disability Insurance – since Robert’s new firm has both disability insurance and a qualified retirement plan in place, he added ABE-sponsored retirement contribution disability insurance. If an accident or illness made it impossible for Robert to work, the ABE-sponsored plan provides funding for his retirement savings when he no longer has the employment income needed to make him eligible for continued contributions to his tax-qualified retirement programs.
Martha
“I’m grateful for my ABE-sponsored insurance. It has added quality to my life and security for my family.”
Profile: Founder and Partner of a Legal Advocacy Firm for Artists
52
Graduated from law school 25 years ago
Married with an adopted child
Situation: For many years, Martha has been an advocate for the arts community, providing free and reduced-cost legal services. In her free time, she is also an artist herself with a reputation and following for her paintings. With her husband Paul and child Tammy, Martha is concerned about ensuring their financial security as Tammy suffers from asthma and the medical bills continue to grow.
Solution: Term Life Insurance – with an ABE-sponsored plan, Martha can supplement the life insurance coverage she receives at work with an additional amount that Paul, as named beneficiary, would receive in the event of Martha’s death. These additional funds could help with Tammy’s medical care.
Disability Income Insurance – at Martha’s organization, there is no disability insurance coverage. This ABE-sponsored plan provides Martha with financial protection in case an accident or illness rendered her unable to practice law. With the ABE-sponsored Disability Plan, Martha would have continued financial security even if she is unable to work.
Excess Major Medical Insurance – this ABE-sponsored plan supplements Martha’s existing major medical policy provided through her job, which does not have very rich benefits. This ABE catastrophic plan provides added assurance that medical bills would be covered in the event of a serious accident or illness, even if Martha decided to go to a doctor or hospital outside of her basic plan network.
Late Career
Michael
“My ABE sponsored-insurance has become a valued part of my overall financial plan, helping to supplement insurance coverage I have through work and providing an easy way to give back to the profession.”
Profile: Federal Judge
63
Graduated from law school almost 40 years ago
Wife and four grown children
Situation: After 20 years in private practice, Michael has enjoyed an additional 20 years on the federal bench. He and his wife raised four children and are looking forward to retirement, traveling, and to finding ways to give back to the legal profession. Last year, Michael suffered from prostate cancer and is now cancer-free. The ABE-sponsored plans provided critical assistance to Michael for paying the doctor and hospital bills. Since ABE plans are portable, he was able to keep the ABE-sponsored plans even when he left private practice and began his work as a judge.
Solution: Excess Major Medical and Hospital Indemnity Plans – Michael’s medical plan at work provided basic coverage but with the co-pays, deductibles and plan network he had to adhere to, he wanted to supplement his basic coverage in case of a catastrophic accident or illness. When Michael was diagnosed with prostate cancer, he was glad to have the added protection and financial support that the ABE-sponsored Excess Major Medical and Hospital Indemnity Plans provided.
Charitable Gift Fund – Michael and his wife found the ABE’s Charitable Gift Fund (Donor-Advised Fund) to be an excellent option to enhance their charitable giving plans. The ABE CGF allows them to make larger contributions and get an immediate tax-deductible donation, then fund their favorite charities at a convenient time while providing support for ABA charitable efforts. Best of all Michael enjoys the freedom he receives since ABE handles all of the paperwork and writing and distribution of the checks.
Accidental Death and Dismemberment Insurance – with travel in their plans and their increasing ages, Michael and his wife added the ABE-sponsored AD&D policy to their portfolio.
Sylvia
“At this stage in my career, it is one of life’s pleasures to spend more time giving back to the profession. I’m grateful for my ABE-sponsored insurance. As an ABA member it is wonderful to have access to so many important insurance plans.
Profile: Partner in a boutique law firm
64
Graduated from law school 40 years ago
Widowed, No children
Situation: A pioneering woman in the field of law environment for years, Sylvia plans to retire next year and devote her time to pro bono efforts, including traveling to emerging countries as a volunteer to assist in the development of their legal systems. Widowed many years ago, Sylvia enjoys her independence, and plans to take her favorite niece with her on her travels. Her health is excellent, and she looks forward to many years of pro bono service.
Solution: Charitable Gift Fund – as an attorney committed to giving back to the legal profession, Sylvia opened an ABE Charitable Gift Account a number of years ago. The ABE Charitable Gift Fund is a Donor-Advised Fund that allowed Sylvia to receive an immediate tax deduction with each donation to the Fund. She funded her account during her earning years and, once retired, plans to use the account to provide grants to her chosen charities. Two of her favorites are the ABA Fund for Justice and Education and the American Bar Foundation.
Accidental Death and Dismemberment – because of Sylvia high-risk travels, she felt the addition of the ABE-sponsored AD&D plan would provide inexpensive coverage and enhanced financial security for herself.
Tom
“I enjoy my ABA membership as well as the access it offers me to ABE-sponsored insurance plans. I plan to continue active participation in the ABA as long as I am able. At this stage in my life, it’s important for me to act as a role model for younger attorneys as well as my grandchildren.”
Profile: Retired law firm partner
Active in ABA committees
70
Married, three children, many grandchildren
Situation: After a long legal career, Tom enjoys spending time with colleagues at the ABA, giving back to younger members of the profession and serving as a mentor. He is especially active on the diversity committees, helping to foster opportunities for minority groups within the legal profession.
Solution: Hospital Indemnity Insurance – as a safeguard for possible medical or other expenses while hospitalized, Tom added the ABE-sponsored Hospital Indemnity Plan to his insurance portfolio. This program is available for ABA members at any age and provides benefits if hospitalized.
Charitable Gift Fund (CGF) – Tom and his wife spend time each year identifying outside charities as well as ABA-sponsored entities worthy of the grants they recommend from their ABE CGF account.