Prepaid legal plans work as a legal insurance to minimize the cost of protection for a group of policy holders who pay a monthly premium. As in other types of insurance, prepaid legal requires its policy holders to pay a small fee per month to receive coverage for a wide range of legal services.

History

Harland Stonecipher was involved in a head-on collision in 1969, which inspired him to start a prepaid legal service. He studied the industry of European legal expense plans and formed Pre-Paid Legal Services, Inc. This has become the most successful service of the prepaid legal companies with over 700 staff members and 1.5 million people covered by the plan.

Benefits

Members of the prepaid legal plans typically receive unlimited legal consultation with a network of participating attorneys in their state or city. By calling the customer service number of prepaid legal, they are put in contact with attorneys who can help them prepare wills, file lawsuits, review contacts and purchase agreements, and file divorces and bankruptcies.

Considerations

Considering the small cost of a plan at $26 per month, the plan is within the economic reach of most people. At the same time, most policy owners do not need to pay $300 or more to attorneys before they purchase the plan.

Misconceptions

Prepaid legal plans are not without exemptions. Pre-existing legal problems are not covered by many of these plans. If you are arrested for driving under the influence or on drug charges, the plan will not defend you.

Warning

Prepaid legal is often marketed by multilevel marketing organizations that sell the "dream" of owning your own business along with the policy. Some groups put great emphasis on the business opportunity more than the benefits of the product.

Source:

Pre-Paid Legal Services, Inc.

MediaMoogle: Prepaid Legal Info

MediaMoogle: Prepaid Legal Services Plans