What Is Prepaid Legal?

What Is Prepaid Legal?

Pre-Paid Legal Services provides its members with legal consultation for a wide variety of issues, ranging from significant events, such as divorce, to more common occurrences like buying a house or car and dealing with a problem with an insurance company. Pre-Paid Legal members select a plan based on their needs and, according to the Pre-Paid Legal website, have constant access to a professional law firm pre-screened and selected by Pre-Paid Legal.

History

    Pre-Paid Legal Services is the brainchild of Harland Stonecipher, who was involved in a serious July, 1969 car crash. The Pre-Paid Legal website notes that Stonecipher had insurance to cover all of his major expenses--auto, medical and life insurance had he died--except the resultant legal fees. This led Stonecipher to create the Sportsman's Motor Club in 1972, offering legal reimbursement services to members. The Sportsman's Motor Club morphed into Pre-Paid Legal Services over the course of the mid-to-late 1970s. As of March 2010, the company is headquartered in Oklahoma, publicly traded on the New York Stock Exchange and boasts over 1.5 million members across 48 states and four provinces.

How It Works

    Pre-Paid Legal Services uses the following pitch at its website: "The top 10 percent of income earners can afford to have a lawyer on retainer... What about you?" With a Pre-Paid Legal plan, you have access to a lawyer whenever you need one. Pre-Paid Legal screens lawyers, effectively selecting one for you. When you need advice, you call the number on the back of your Pre-Paid Legal membership card to speak to your law firm.

Types of Plans

    The types of plans and services Pre-Paid Legal offers varies by both your location and needs. Monthly costs fluctuate based on the same factors. Pre-Paid Legal notes you can utilize its services for $26 a month or less. For instance, in California, a $25 monthly fee puts you on the "Expanded Family Plan." This plan includes "preventive legal services," including unlimited phone consultations with your law firm and up to 75 hours of your provider's time for trial defense services. Under a "Standard Family Plan" ($16 per month), your family receives the same coverage, but with fewer hours allotted for each service.

Considerations

    Fees in addition to your monthly Pre-Paid Legal plan fee do exist. For instance, Pre-Paid Legal notes that the primary member and spouse can receive a free will from a law provider under the Expanded Family Plan. Other family members can also receive a will, but they must pay a $20 fee. Pre-Paid Legal considers husband and wife, never-married children under 21 living at home, and unmarried children under 23 who are full-time college students. A one-time enrollment fee also applies to the Pre-Paid Legal's monthly plans.

Employers

    Pre-Paid Legal offers its services to employers as a benefit to offer employees. Pre-Paid Legal claims that work productivity can drop when an employee needs to use excessive time dealing with legal problems. The solution, according to Pre-Paid Legal, is to offer monthly plans as an employee fringe benefit. Simply put, it works just like group health insurance. Employees can opt in and out and use the services when needed. Fees not covered by the employer are deducted from an employee's paycheck.



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