Prepaid legal plans are purchased by individuals and offered by employers to cover the cost of future legal advice or assistance. There are many different prepaid legal plans offered by a range of companies, from local law firms to national organizations and companies. Legal services are a growth business and could be attractive to investors.

Prepaid Legal Stocks

For private investors to buy stock in a company, the company must be publicly traded and have its stock listed on a stock exchange. Three prepaid legal companies or services are publicly traded or subsidiaries of publicly traded companies. The AARP Legal Services Network is provided by Allstate, which trades under the stock symbol ALL. Hyatt Legal Plans is the largest provider of employer-sponsored prepaid legal plans in the U.S. and is owned by MetLife. MetLife stock can be bought under the stock symbol MET. Prepaid Legal Services Inc., stock symbol PPD, is the only stock exclusively providing prepaid legal services.

Purchasing Prepaid Legal Stocks

The prepaid legal subsidiaries of Allstate and MetLife are just small parts of larger insurance companies. Prepaid Legal Services Inc. is the only single-industry prepaid legal services stock. PPL has been in business for more than 30 years, and the stock has traded on the New York Stock Exchange since 1976. In 2009, Prepaid Legal Services had profits of $60 million on revenues of $464 million. The company sells its plans to individuals and businesses through independent contractors in a network marketing system. PPL stock can be purchased through any stockbroker or online stockbroker account. During a five-year period ending October 2009, PPL traded for between $30 and $70 per share. It is important to do your own research into the current financial condition of any company before purchasing the stock.

Source:

AARP Legal Services Network

Hyatt Legal Plans

PPD profile on Yahoo Finance