The basics of pre-paid legal services

The basics of pre-paid legal services

If you have a will to be written, need tax advice, or are adopting a child, the attorney's fees can empty your bank account fast. Pre-paid legal services can help ease some of the sting in paying for a lawyer.

Pre-paid legal service plans work much like HMOs. The risk for legal services is pooled and spread over a large group of customers. Members of the group pay an annual fee and have access to an established network of attorneys for advice and service, just as HMO members have access to a network of physicians. And like HMOs, plan members can always choose to use a lawyer out of network, though the plan won't pay for it.

Pre-paid legal plans are typically offered in two models: "access" and "comprehensive." While every plan differs in the specifics of what it covers, access plans generally cost much less and provide quick access to an attorney for advice and simple legal services. Access plans average less than $200 a year for a family. If you sought an attorney's help on your own, hourly rates average anywhere from $145 per hour up to $225 or call a lawyer to get and hourly rate so if you use a lawyer just once a year with a pre-paid legal plan, you've probably saved yourself money. But be aware that some plans require a co-pay for services just as there is for doctor visits and prescription medications. Remember to know your co-pays in each plan.

Comprehensive pre-paid legal plans provide a much broader range of services that require more time and effort on the part of attorneys, such as wills, trusts, deeds, or contracts. Comprehensive plans can provide for legal representation in negotiations and in court cases such as divorce or child custody, and in some cases may cover all costs involved in litigation. These plans can cost $300 a year or more and are most beneficial to people who own more than one piece of real estate, have complicated family situations with wills and trusts, or who run their own business and need business support and advice.

In both cases, benefits often have caps or maximums, but comprehensive plans will usually have higher limits.

The benefits of pre-paid legal plans, particularly the more affordable access plans, include easy access to an attorney, significant cost savings, and, in many cases, preventive services that can help with issues before they reach crisis proportions. For instance, you may be able to call on a lawyer for advice on mediating a dispute with a neighbor over property lines instead of arguing until the dispute becomes a lawsuit.

Plans can vary in their offerings but most offer unlimited phone access to a lawyer as part of the plan. Some go as far as to offer unlimited office visits, depending on which plan you've paid for. Members are usually allowed to choose any attorney from the network, but sometimes you'll have to select an alternate due to case loads, . remember to read the terms of service

What to look for

In addition to a clear outline of what is and is not covered under the pre-paid legal plan, there are a few more things to consider when signing up for pre-paid legal services. The plan should have directions on how to resolve a dispute with or complaint against an attorney in the plan.

There should be information on secondary sources for resolution as well. In states that have legal insurance laws, the plans will be regulated by your state department of insurance. However, not all states have specific laws addressing legal insurance. In that case, each state's bar association can provide an outlet for complaints against attorneys.

Choosing your attorney from the network list is up to you, so you'll want to do a little homework before making your selection. If you already know an attorney on the list, it makes it easier, but if you're looking at a list of strangers, it's buyer beware. You can contact your state bar association to find out if complaints have been filed against particular attorneys. If the plan you've joined has other members whom you know or work with, you can ask them for references. Groups and employers that offer these plans should have researched law firm or attorney backgrounds before selecting them, but it always pays to back that up with your own research.

Remember to read all information on Pre- paid legal services

Pre-paid legal service plans are available to individuals or families through legal service organizations and sometimes through churches, educational institutions, alumni associations, business groups, credit unions, and employers

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