Is PrePaid Legal Insurance Really Worth Your Money?
Published by Manny on Tagged Finance-Money Saving
When it comes to life, auto, home, or health insurance, you may be covered… but have you thought of legal coverage?
The real question isn’t wether or not you’ll need a lawyer, but when: Americans have come to view legal assistance as a necessity, according to the America Bar Association (ABA). But yet, due to the high fees that attorneys charges, which could range anywhere from $100 to $1000 an hour, and the hassles involved in searching for one, most people don’t use a lawyer more than once.
For those in search of an alternative. Prepaid legal insurance may just be what you are looking for. It’s a pretty simple concept: for a fixed monthly rate, you get advice from an attorney thru the phone. You pay the fixed price up front every month to provide payment for the cost of legal services rendered in the future. Services can span from various areas of the law, anywhere from reviewing and writing a simple document to more full-length coverage of trials, bankruptcy, divorce and issues with real estate.
Prepaid legal insurance coverage is a good option for those who lack the resources to get a lawyer on a regular basis when you are in need of it. You’d have a network of lawyers whom you can talk to and seek advice about the issues you face and how to go about the legal procedures of doing things. Also the services not covered by the plan are available to members at a discount on either a flat or hourly fee.
However, the hard truth is more than half of the new subscribers to the prepaid plan drop out within or just after the first year. A major reason is that those who have signed up don’t really use the service and therefore decide to opt out of it. Another reason may be due to the fact that the services offered are very basic in nature and limited. They have certain caps as far as benefits and aim to offer discounts on standard attorney fees instead. And yet another problem with pre paid services is that they may assign interns or inexperienced attorneys to handle the phone consultations and writing of simple documents. It is less likely you’ll build rapport and understanding over the phone, which are probably two of the most important things a client needs when in search of an attorney.
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January 9th, 2008 at 11:08 am
Fair and honest post on the services that PrePaid legal offers as well as the reality that folks do, in fact, drop-off after a year or so.
But here’s the thing… I get people that come to our site http://www.ValueLegalPlans.com that have been a member in the past and they have an legal issue that came up where they need to use an Attorney.
Often times their legal problem is not covered because it is a pre-existing condition such as a lawsuit filed against them or a traffic violation.
It’s hard for me to have to inform them that pre-existing conditions aren’t covered under the Family plan, except for the 25% discount rate.
If PPL did that it would compromise the integrity and the quality of the services they provide. After all, you can’t get in your car and go out and get in a wreck, then ask for auto insurance, right?
So the idea is to keep the legal plan, just like any other insurance, even if you don’t use it for the times when you do need it.
Great post,
Eric G