Hiring the correct lawyer or team might be more difficult and expensive than dealing with legal issues on your own. Legal issues frequently develop suddenly and without warning, so it's crucial to be ready for them when they do. Legal insurance can be beneficial in this situation.
What Is Legal Insurance?
Legal assistance is made available through legal insurance, including document creation and review, consultation, and court representation for many typical legal issues.
How does legal insurance work?
This kind of insurance, which is also known as group legal or prepaid legal, is most frequently a part of a workplace benefits package. Employees have the option to enroll in a legal plan, for which they will pay a predetermined monthly premium or annual charge (often minimal), in exchange for access to seasoned lawyers.
These strategies make use of a network of lawyers who have consented to render services under the terms of a contract with an organization. If you utilize a network attorney, there usually aren't any invoices, deductibles, or claims forms to fill out.
What does group legal insurance cover?
Legal insurance frequently covers a broad range of legal difficulties, almost everything but workplace-related issues. In any of the following circumstances, having a legal plan in place would likely be helpful:
- Wills and estate planning - last will and testament, trust funds, asset distribution, etc.
- Relationship changes - marriage, separation, divorce, etc.
- Family law matters - custody battles, adoption, child fostering, etc.
- Real estate - buying or selling a house, land disputes, etc.
- Minor legal infractions - traffic violations, civil cases, property disputes, etc.
- Consumer protection - false advertising, unfair business practices, etc.
- Bankruptcy - choosing which chapter to file, associated legal proceedings, asset protection, etc.
- Personal protection - identity theft, fraud, etc.
- Contract law - understanding, interpreting, and identifying potential loopholes or blind spots
- Sending kids to college - security deposit costs, lease documents, student loans, etc.
- Caring for aging parents - nursing home agreements, Medicare/Medicaid, hospital bills, etc.
Is legal insurance worth it?
Less than the average hourly fee of $391 charged by lawyers in the United States, or $240 per year, members in legal insurance plans can pay as little as $20 per month (according to a survey of Law Firm Economics by the National Law Journal and ALM Legal Intelligence).
Even if you don't foresee any legal issues or the need for legal representation, making sure you have some protection in case something does happen is quite valuable. It's also important to keep in mind that not all legal disputes are blatant conflicts; sometimes it's helpful to have legal counsel by your side while you navigate intricate contracts or agreements.
You could end up saving a significant sum of money and time if your employer provides legal insurance as part of your employee benefits package.
Final thoughts on Legal Insurance
If you're debating whether legal insurance is worthwhile, weigh the financial as well as psychological costs of being without a legal advisor. A legal plan may help you feel supported and ready for what comes next, whether it be for those scenarios you never thought you'd have to face, like divorce or bankruptcy, or the more common legal problems, like marriage and purchasing or selling real estate.
Find Out How Legal Insurance Can Help You Stay Ahead Of The Curb With Legal Fees