subject: The Benefits of Pre-Paid Legal Services [print this page] Insurance is almost always a wise investment for any individual worried about the unpredictable. Its most obvious advantage is that it gives you valuable peace of mind. Health insurance protects you from huge bills due to unexpected accidents and home insurance can protect people from loss of possessions that can result from burglary or fires.
Recently however many people have been taking this concept and applying it to legal services.
The result of this is what is known as 'Pre-Paid Legal Services'. These work in a similar way to medical insurance: the customer pays either a one-off upfront fee, or on a yearly or monthly basis. These payments entitle the customer to certain legal services for no extra charge. An example of free services that usually come with such a package are things like help writing a will or reviewing property deeds.
Generally pre-paid legal services also entitle the customer to a discount on any other legal services that they may need. Usually this means a percentage discount however as with medical insurance, each plan is different and it's important for people to tailor pre-paid legal services to their own needs. An example of this would be if the customer was injured in an accident at work and wanted to sue for damages. The pre-paid legal services plan would enable them to have access to a lawyer for a large discount, or depending on the plan, for free.
One of the downsides to pre-paid legal services can be a lack of freedom for customers in choosing their own lawyer or attorney. Often the company who sold a plan will only work with certain (often cheaper) lawyers and so it is important to really look at the details of any plan before purchasing it.
In summary, as with any insurance plan legal or otherwise, pre-paid legal services can be a bit of a gamble. In many ways it's similar to home insurance, if you don't get burgled the money has been effectively wasted, but if you find yourself in need of legal help such a plan could be hugely beneficial.
Given all this, anyone considering purchasing pre-paid legal services should assess whether they expect much need of legal help within the coming year (or however long the contract lasts). If it seems highly unlikely then there can be little point, but if the future is uncertain, pre-paid legal services can save a lot of money.
