In some cases, it's easy to go online, answer a few questions, and find the best deal on insurance within minutes. This is particularly true of home and auto insurance where policies tend to have a lot of similarities.

But shopping online for more complex forms of insurance alone is rarely a bargain, regardless of the price. Worse, there can be long-term costs and consequences to making a poor and hasty decision.

Heather Nadler, a Lawyers Financial Advisor in Oakville, Ontario has worked with attorneys and their staff at every stage of their careers and has some time-tested advice for online insurance shoppers. "With complex insurance products, it's almost impossible to compare apples to apples online because policies vary in terms of what they cover and how much they cost. The limitations of a policy may only reveal themselves when it comes to renew the policy or file a claim. By then, it's too late to change your mind," she warns.

3 advantages of working with your Lawyers Financial Advisor

1. Experience

Buying the kind of insurance that lawyers need is more complicated than shopping for basic coverage or home and auto insurance online. Sole practitioners, for example, will need a well-orchestrated array of policies to protect themselves and their families as well as clients and staff. "With so much at stake, there's little advantage to shopping on your own," says Ms. Nadler. "You're likely going to get better, more cost-effective insurance if you let someone with experience do the heavy lifting and the comparison shopping."

2. Value

Advisors know how to compare all the features of an insurance policy, including the cost to renew it years down the road. "We're thinking about our clients' long-term needs. So, the policies we recommend often have the most protection now and the greatest flexibility down the road to make changes, increase coverage, and renew the policy without penalties or significant increases in premiums," says Ms. Nadler. "Over the lifetime of a practice, those savings can be funneled into other goals, such as retirement or education savings plans. That's when you really start to see the compound effect of good decision making and planning."

3. Personalization

Buying an insurance policy is like buying a car. You can add and subtract options (known as riders) that will increase or decrease the cost of your coverage. Sometimes, those features are offered as bundles. Other times, they may not be advertised and you have to ask for them. Advisors know what to look for and help ensure that your insurance is an up-to-date reflection of where you are in life, personally and professionally. An advisor who knows you well can anticipate what you need and when it's time for a change."

Insurance planning in action

As a lawyer, partner or employer, you need a range of insurance policies and that number can grow over time. Here's an example of how an advisor such as, Ms. Nadler and her team can equip a young lawyer (named Amy) from the time she graduates to the time her practice is thriving.

Life event Needs The insurance solution
Graduation Amy knows she wants to start her solo practice the day she graduates. Heather and her team will build a personalized plan that may include:
  • Life insurance
  • Disability insurance
  • Business insurance
  • Office insurance
First hire Amy hires two staff members to help manage the office. Heather's team adds group benefits for both employees and Amy too:
  • Life insurance
  • Health and dental insurance
  • Retirement savings accounts
First partner Business grows and Amy takes on a partner. It's time to add:
  • Life insurance as part of the partnership agreement
  • Key-person insurance to protect both partners if one became unable to practice

Looking down the road, Heather and Amy have already begun to think about how life will change when Amy takes on new business partners and starts her family.

Life event Needs The insurance solution
More staff The new partner should bring in new business so the firm will likely need more staff. Heather and her team will educate the partners and staff on the advantages of the new defined benefits pension plan offered through the Colleges of Applied Arts and Technology (CAAT) Pension Plan.
New family Amy plans to become a parent. Starting a family means new coverage. The team will recommend:
  • More life insurance
  • An education savings plan
  • New wills and an estate plan
More partners More partners mean the need for more protection. The team will review the partnership agreement and put succession planning steps in place. These included:
  • Dedicated insurance policies
  • Additional key-person coverage
  • Ways to fund insurance benefits for retired staff
Exit strategy Amy is already putting plans in place to ensure a prosperous retirement. Looking forward, the enhanced plan includes:
  • Medical benefits in retirement
  • Tax-effective strategies to access wealth
  • Legacy planning to optimize her gifts to others

"At every stage of the firm's growth, we can customize an insurance solution that offers immediate value while leaving the door open for unlimited growth," says Ms. Nadler. "It's extremely satisfying to know that you're helping a business make smart long-term decisions.

The Internet is a great place to educate yourself and explore your options. It's our job to help clients make sense of the information and put it all together in the best way."

Originally published 20 August, 2020

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.