Prepaid Legal Services: Affordable Consumer Legal Protection

Consumer Prepaid Legal Services Can Be Simple And Affordable

Discount legal services provide basic legal work at highly discounted rates for those who cannot qualify for free legal aid. Prepaid Legal Services offers a national legal plan that requires a modest monthly premium. In exchange, the member receives various legal advice and consultation, including a review of legal documents, preparation of a basic will, legal letters drafted on your behalf, and phone calls made by your lawyer to an adverse party.

Highly discounted hourly rates

Most prepaid legal services hourly rates are highly discounted compared to major law firms. Also, depending on the type of consultation requested, many are performed without charge. Some discount legal plans offer unlimited phone consultations for new matters.  

Based on the insurance model of shared risk

Prepaid legal services, in many ways, resemble the business model of insurance companies. The fundamental business premise depends on effectively leveraging and managing risk exposure successfully. Specifically, the risk and cost of consumer legal trouble are calculated against the pool of monthly paying members. The income from members must substantially exceed the price of the legal services being provided by the participating law firms.

Legal Plans are offered through company human resource departments

Prepaid services market their plans through different organizations’ human resources and benefits departments, providing them as part of the organization’s overall benefits package. The types of organizations include large companies, unions, and local and regional credit unions. 

Plans are sold to individuals and families 

Legal plans are also marketed to individuals. Typically groups of people are invited to attend a no-cost legal seminar. As a background to learning about prepaid legal services, the group participants learn how the legal system works and how law firms and attorney fee structures work for most types of consumer legal trouble. The group is then presented with all the benefits their prepaid legal service provides.

Plan participants learn about the financial risk that unexpected legal trouble can cause. For example, a person can get injured at work and lose their job. If the injuries are significant enough, they can force a person into what is commonly referred to as medical bankruptcy. The inability to pay medical creditors is one example of how health trouble leads to financial and legal trouble. Meeting these kinds of challenges requires sound legal advice at an affordable price.