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Q. Where do members go to purchase insurance for ABA members?
A. ABA members can look to the American Bar Endowment (ABE) and to American Bar Insurance Plan Consultants, Inc. (ABI) to purchase ABA member insurance plans.
Q. Who are the ABE and ABI?
A. The ABE is a non-profit affiliate of the American Bar Association. ABI is the for-profit subsidiary of the ABE. The ABE and ABI offer different insurance plans to ABA members.
Q. Why are there two organizations providing different insurance plans to ABA members?
A. The ABE offers plans like Term Life and Disability Insurance. These plans are designed to produce dividends. (Dividends are not guaranteed.) ABI sponsors insurance programs, such as Auto/Homeowners and Long-Term Care that the Endowment is unable to offer, due to its dividend contribution structure.
Q. What makes the ABE and ABI plans different from the plans members can get from their state or local Bar Associations or their local agent?
A. When members purchase their insurance through the ABE and ABI they get quality insurance AND the opportunity to give back. ABA members who purchase ABE-sponsored insurance have the choice to donate any dividends generated on their plan or to ask that dividends be returned to them. Members who donate their portion of ABE plan dividends are eligible for a charitable contribution deduction for tax purposes. This means that members either get cash back or are eligible to receive a tax deduction. ABA members that purchase ABI insurance plans also give back since profits of ABI are paid as a dividend to the ABE.
Q. Where do the donated dividends go?
A. The member-donated dividends, together with the dividends given by ABI to the ABE, are granted annually to the ABA Fund for Justice and Education (FJE) and the American Bar Foundation (ABF). These grants, totaling more than $252 million since 1942, help support over 200 legal research, public service and educational projects.