The Federal Emergency Management Administration (FEMA) annually recognizes September as National Preparedness Month, emphasizing five national preparedness goals: Prevention, Protection, Mitigation, Response, and Recovery. Attorneys play a crucial role in managing risk for their clients by proactively preventing incidents and establishing protections for critical events. Life insurance is a vital component of risk management.

Life insurance coverage plays a critical role across various practice areas. It protects businesses from financial loss due to the unexpected death of a key executive. It safeguards a divorced spouse from loss of support through a policy on the primary earner. In many other scenarios, life insurance provides financial security for those who rely on a specific person.

Studies indicate that while 52% of Americans have some life insurance coverage, around 40% of American adults believe they lack sufficient coverage. This perceived gap in coverage is more pronounced among women, highlighting shifting social and economic trends, partially attributable to the COVID-19 pandemic.

How can lawyers contribute to enhancing financial security for clients, partners, and employees? Greater familiarity with insurance products is essential. Courts have even deliberated on whether attorneys have a duty to inform clients about the benefits of new coverage, potential coverage, or loss of coverage.

Life insurance is a term that encompasses two types of policies: “whole/permanent life” or “term life.” Term Life Insurance expires after a set period, while Whole (or Permanent) Life insurance remains active until the insured person dies, stops paying premiums, or surrenders the policy. These contracts between an insured individual and an insurance company pay a sum of money to beneficiaries upon the insured person’s death in exchange for premiums paid during the life of the insured person.  Life insurance policies often require disclosure of personal medical history and a medical exam. Age, gender, tobacco use, health conditions, and lifestyle are important factors considered in underwriting a life insurance policy. Consumers should consider the financial health and stability of the insurance company and consult with a licensed insurance agent when seeking quotes.

Life insurance is a cornerstone of financial security, yet many individuals remain underinsured or unaware of the different policies available and their legal implications. As attorneys, it is our responsibility to guide our clients, partners, and employees by identifying opportunities to secure protections to mitigate the impact and ensure recovery following a critical event. By providing this guidance, attorneys empower clients and employees to secure their future and safeguard their interests in an increasingly complex and unpredictable world.

If you’d like to discuss life insurance options, please contact OBLIC’s partner agency, the OSBA Insurance Agency. OSBAIA Senior Agent Danna Blackburn can be reached at 614-572-0627.

Your Loss Prevention Team is here to help, too. Feel free to call or email!

This information is made available solely for loss prevention purposes, which may include claim prevention techniques designed to minimize the likelihood of incurring a claim for legal malpractice. This information does not establish, report, or create the standard of care for attorneys. The material is not a complete analysis of the topic and should not be construed as providing legal advice. Please conduct your own appropriate legal research in this area. If you have questions about this email’s content and are an OBLIC policyholder, please contact us using the information above.