PrepaidLegalhub.com
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PrepaidLegalhub.com |
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Prepaid
Legal Services Plans/ Pre-paid Legal Expense Insurance: Pre paid Legal Services Plans What Are They? During the past several decades a variety of options has arisen to reduce the cost of legal services for consumers through "pre-need" arrangements. However termed, these options provide consumers with ready access to qualified attorneys for legal services at known costs. How Do They Work? Legal services plans work by making prior arrangements with lawyers to provide specified services to plan members at reduced fees. These plans may involve a prepaid charge or premium, but some plans have no prepayment features. Some legal services plans are negotiated employee benefits, where the cost of the plan is partially or fully paid by the employer. Other plans are offered to groups of affiliated persons (e.g., credit union members) who "enroll" in the plan by agreeing to pay the plan's enrollment charge for covered services. This charge is similar to an insurance premium. Still other plans enroll individuals (e.g., credit card holders) who charge the plan fee to their credit cards. Finally, there are plans for groups where there is no prepayment but the participating lawyers agree to provide listed services at reduced fees to plan members. Where legal services are "covered" in the plan documents, in a prepaid plan the fee for those services is paid by the plan; in a no prepayment plan those services are provided to the plan member at a reduced fee. Where the legal services are "partly covered" in a prepaid plan, there is partial payment by the plan. Where the legal services are "not covered" by the plan, in a prepaid plan the member pays the lawyer directly, but typically at a reduced fee for that service; in a no prepayment plan there is no prearranged fee for those services. Finally, whether in a prepaid or no prepayment type plan, where the services are "excluded" the plan does not apply at all to the legal fees. The fact is that legal services plans are the product of a free market and thus vary greatly in extent of coverage, extent of choice of legal service providers, and, of course, the prices consumers pay. Therefore, as in all else, it pays to shop carefully. What Do Legal Services Plans Typically Cover? There is no set model for the services covered under a legal services plan. Each plan's coverage must be examined before you sign up. However, we can identify the two basic plan types that mark the ends of the coverage/cost spectrum. At one end of the coverage and cost spectrum are Access plans that provide quick access to an attorney for advice and uncomplicated legal services. At the other end of the spectrum are Comprehensive plans providing extensive services such as complex legal advice, legal document drafting (e.g., wills, trusts, contracts and deeds), representation in real estate transactions and in negotiations, as well as before courts and administrative agencies. A few comprehensive plans even cover some or all of the costs involved in litigation. Who Provides The Services? Legal services plans provide service through arrangements with lawyers. Exactly how the lawyers are engaged depends upon the particular plan. For example, the plan may use a panel of private lawyers in the community; or, may allow the members to go to any lawyer in the area; or, may furnish a lawyer from a staff of full time lawyers who work only for plan members. In a prepaid plan, when the plan uses staff or panel lawyers, the plan pays the lawyers directly and the lawyers do not bill the members for covered services. When the plan allows any lawyer to be used, the plan only pays a set amount to the lawyer for covered services; thus the member might have to pay the lawyer additional fees. In a plan with no prepayment, the services are only provided by the plan's panel attorneys. Shopping For Legal Services Plans: What To Look For A legal services plan should clearly describe the covered legal services provided, the legal services excluded, any geographical limitations on services, and the amount of any prepayment or costs you will incur. A plan also should clearly state the relationship among the attorney, the client, and the plan. The plan should inform members how to file complaints if a dispute arises. Keep in mind that certain legal expenses may already be covered under insurance policies such as homeowners or automobile policies; remember such existing coverage when evaluating whether a particular legal services plan meets your needs. |
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Prepaid Legal Hub book recommendations Prepaid Legal Services and Legal Insurance : What CEOs, Human Resource Directors, Employee Benefit Brokers, Small Business and Home-based Business Owners Should Know! (Paperback) by Bob Afamasaga The Pre-Paid Legal Story: The Story of One Man, His Company, and Its Mission to Provide Affordable Legal Protection for Everyone (Hardcover) by Harland C. Stonecipher, James W. Robinson |