PrePaid Legal Insurance
You may be covered when it comes to health, life, car or home insurance but what about legal coverage? The question is not if you'll need a lawyer, but when: according to the American Bar Association (ABA) "Americans have come to view legal assistance as a necessity". Yet, most Americans have not used a lawyer more than once due to the sky high attorney fees anywhere from $100 to $1000 per hour and the trepidation involved in the search for legal services.
Prepaid legal insurance might just be the answer. The concept is simple: for a fixed monthly subscription, you get telephone access to advice from a lawyer. You pay a fixed amount in advance each month to defray the cost of legal services furnished in the future. These services span various areas of the law, anywhere from reviews of simple legal documents and the writing of a simple will to more comprehensive coverage of trials, divorce, bankruptcy and real estate issues.
Pre-paid legal coverage is a very attractive proposition for people who don't have the resources to retain a lawyer on a regular basis whenever they need assistance. You effectively have a network of attorneys you can use as retainer to seek preliminary advice about what the issues are and how the procedures work whenever legal matters arise. Services not covered by the plan are available to members for a discount on regular hourly rates or flat fees.
A hard fact, however, is that more than half of new subscribers drop out of a prepaid plan after their first year. One reason could be that many members do not require any legal assistance during their first year, so opt out. Another reason is the scope of services offered, which are very basic and limited in nature. Most plans have certain caps or maximums as far as benefits provided are concerned, and purport to offer discount on standard attorney fees instead. However, by virtue of simply calling around by yourself you could probably negotiate a lower rate. Another problem with pre-paid legal plans is the likelihood of getting assigned to a novice attorney. Because of cost considerations, many of the companies behind per-paid services assign trainee or inexperienced attorneys to handle phone consultation and drafting of simple legal documents. You are also less likely to build rapport and understanding, two of the most important attributes of choosing a good attorney, as over 90% of the work is done over the phone.
It is not uncommon to see the terms "legal plans" and "pre-paid legal services" used interchangeably. While they share a lot of characteristics in common, there are a number of differences you should be aware of. Both of these terms refer to an arrangement whereby you pay a fixed monthly or yearly fee in exchange for legal services. The idea behind them is to save consumers on high legal fees whilst offering a valuable service. That's where the differences lie: what kind of service is offered and what is covered. What are you entitled to in both schemes?
Pre-paid services cover for specific legal services: free phone consultation and advice, drafting of simple wills and trusts, review of sample contracts and writing of letters on your behalf. Legal services not provided will get charged at regular attorney fees, but you may be eligible for discounts. Legal insurance, by contrast, works much like other insurance plans, like health or car insurance. Although specific legal services are offered at times, your insurance provider will typically offer a policy that covers for all legal services. The policy will pay on behalf of you, the policy holder, or reimburse all expenses, costs or fees that you pay for legal services up to the policy limit. For instance, your policy might reimburse any fees incurred in your court judgments or pay your bail money a service not provided by most pre-paid legal plans.
Legal insurance is also pegged to other insurance policies you may already have. If you run into legal problems involving your other insurance, then your legal insurance policy will protect you against loss or liability. For instance, if you are involved in a car accident when your auto-insurance has already run out and you are subsequently sued for recovery of damages, you will be protected by a legal plan insurance. The other difference between the two schemes is related to choice of attorney. In a pre-paid legal service, you get to choose from a restricted number of the attorneys in the network. By contrast, a legal insurance plan provides legal coverage regardless of attorney. You are free to set up interviews with any number of attorneys and choose the ones you think will provide the best service for your personal legal needs.
Finally, pre-paid legal plans are much more accessible to the general public. Legal plans are harder to come by as only a limited number of insurance companies offer such arrangements
You may be covered when it comes to health, life, car or home insurance but what about legal coverage? The question is not if you'll need a lawyer, but when: according to the American Bar Association (ABA) "Americans have come to view legal assistance as a necessity". Yet, most Americans have not used a lawyer more than once due to the sky high attorney fees anywhere from $100 to $1000 per hour and the trepidation involved in the search for legal services.
Prepaid legal insurance might just be the answer. The concept is simple: for a fixed monthly subscription, you get telephone access to advice from a lawyer. You pay a fixed amount in advance each month to defray the cost of legal services furnished in the future. These services span various areas of the law, anywhere from reviews of simple legal documents and the writing of a simple will to more comprehensive coverage of trials, divorce, bankruptcy and real estate issues.
Pre-paid legal coverage is a very attractive proposition for people who don't have the resources to retain a lawyer on a regular basis whenever they need assistance. You effectively have a network of attorneys you can use as retainer to seek preliminary advice about what the issues are and how the procedures work whenever legal matters arise. Services not covered by the plan are available to members for a discount on regular hourly rates or flat fees.
A hard fact, however, is that more than half of new subscribers drop out of a prepaid plan after their first year. One reason could be that many members do not require any legal assistance during their first year, so opt out. Another reason is the scope of services offered, which are very basic and limited in nature. Most plans have certain caps or maximums as far as benefits provided are concerned, and purport to offer discount on standard attorney fees instead. However, by virtue of simply calling around by yourself you could probably negotiate a lower rate. Another problem with pre-paid legal plans is the likelihood of getting assigned to a novice attorney. Because of cost considerations, many of the companies behind per-paid services assign trainee or inexperienced attorneys to handle phone consultation and drafting of simple legal documents. You are also less likely to build rapport and understanding, two of the most important attributes of choosing a good attorney, as over 90% of the work is done over the phone.
It is not uncommon to see the terms "legal plans" and "pre-paid legal services" used interchangeably. While they share a lot of characteristics in common, there are a number of differences you should be aware of. Both of these terms refer to an arrangement whereby you pay a fixed monthly or yearly fee in exchange for legal services. The idea behind them is to save consumers on high legal fees whilst offering a valuable service. That's where the differences lie: what kind of service is offered and what is covered. What are you entitled to in both schemes?
Pre-paid services cover for specific legal services: free phone consultation and advice, drafting of simple wills and trusts, review of sample contracts and writing of letters on your behalf. Legal services not provided will get charged at regular attorney fees, but you may be eligible for discounts. Legal insurance, by contrast, works much like other insurance plans, like health or car insurance. Although specific legal services are offered at times, your insurance provider will typically offer a policy that covers for all legal services. The policy will pay on behalf of you, the policy holder, or reimburse all expenses, costs or fees that you pay for legal services up to the policy limit. For instance, your policy might reimburse any fees incurred in your court judgments or pay your bail money a service not provided by most pre-paid legal plans.
Legal insurance is also pegged to other insurance policies you may already have. If you run into legal problems involving your other insurance, then your legal insurance policy will protect you against loss or liability. For instance, if you are involved in a car accident when your auto-insurance has already run out and you are subsequently sued for recovery of damages, you will be protected by a legal plan insurance. The other difference between the two schemes is related to choice of attorney. In a pre-paid legal service, you get to choose from a restricted number of the attorneys in the network. By contrast, a legal insurance plan provides legal coverage regardless of attorney. You are free to set up interviews with any number of attorneys and choose the ones you think will provide the best service for your personal legal needs.
Finally, pre-paid legal plans are much more accessible to the general public. Legal plans are harder to come by as only a limited number of insurance companies offer such arrangements