Category: pre paid legal

Who is involved in Legal services?

When you subscribe to a pre-paid legal service, you are likely to deal
with an attorney and a number of other individuals and organisations who
are involved in one way or another with the service. Its important to
understand the role of each participating party in a legal service plan,
particularly when youre unhappy with the service or when fee disputes or
any other litigation with your provider arises.

So, who is involved in your pre-paid legal arrangement?

Your Lawyer

You get to choose your attorney from a pool of attorneys in the network.
Your lawyer is your point of contact for any phone advice or office
consultation. He is the one who furnishes other legal services specified
in your written agreement with your provider: he drafts your will, reviews
simple contracts for you, writes letters on your behalf and makes phone
calls to adverse third parties.
If you are unsatisfied with the quality of work you are getting from your
current attorney in the network then you have the choice of choosing
alternate attorneys. You can also make a complaint to your providers
in-house charge of complaints.

If you benefit from legal services under a group plan scheme then there are
a number of parties who are involved in this scheme.
First the contracted firm, just as is the case with an individual plan, is
the one which provides all the legal help through its network of attorneys.
There are also two parties involved in the deal: a plan administrator and a
plan sponsor.

A plan sponsor is the organisation you are member of, which sponsors your
legal plan. Your sponsor can either choose to provide the legal services as
a fringe-benefit, as is the case with most employers, pre-charge for the
service – universities usually charge for any legal service as part of
tuition fees or charge low-costs, as do trade unions under a
group-bargaining scheme.

Your plan administrator is the person appointed by your sponsor to arrange
for the panel of lawyers from the contracted firm to provide services,
collects all the fees paid into a pre-paid plan, publicizes the plan and
handles enrolment and marketing. The administrator may be a an employee of
the sponsor, an insurance company or an outside firm.

Regulating Authority

Authorities that regulate pre-paid plans provide you with an outline of how
pre-paid legal services are managed and also an outlet in case there are
any complaints.
Individual pre-paid legal plans are generally regulated by your state
department of consumer affairs.
If you are an employee participating in a group plan funded by your
employer, then the legal services are covered and regulated under the
deferral Employee Retirement Income Security Act (ERISA).

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Why you need legal help

We are likely to need legal help at least once a year, yet most of us do
not actively seek legal help.

This is borne out of data from a survey
conducted by Leo J. Shapiro & Associates, on behalf of the American Bar
Associations Section of Litigation, which shows that close to three
quarters of American adults experience some event during a twelve-month
period that may require the services of a lawyer. Over half of those who
needed an attorney chose not to hire one, and close to 80% of those yet to
experience legal problems gave strong indications they might go down the
same route.

Why all the doom and gloom? Price is the most sticking point
for most consumers. When it comes to hiring a lawyer, hourly fees of $100
up to $1000 are out of reach of most peoples budget. And then comes the
trepidation of searching for a good attorney and the right service: there
is a lot of uncertainty and confusion as what a lawyer will do, and how to
tell the good from the bad.

A legal plan may solve these problems and change the way you think of legal
services. Thanks to this arrangement, you can now talk to a lawyer whenever
you have a problem, without fear this will leave you out of pocket. In
fact, you dont even need to be embroiled in a legal problem to get legal
advice: just pick up the phone, call your attorney and get the necessary
legal advice susceptible of resolving any potential problems with
professional legal advice and follow-up, you can prevent ninety percent of
your legal questions becoming legal problems. Basic services such as the
drafting of your will, review of sample health contracts and writing
letters on your behalf are handled at no cost to you. If you want further
coverage to include family problems, such as a divorce or custody of
children, and any legal representation in court, then you simply pay a
premium and get more inclusive coverage.

Even if your plan doesnt cover complex legal matters, it can still save
you money on those sky-high attorney fees. Discounts of up to 20% are
offered on hourly and flat rates. Ultimately, its not all down to how much
you can save. Having an attorney readily available at all times gives you
peace of mind, in the knowledge that there is someone you can use on
retainer for advice and help on anything of legal nature.

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Types of Prepaid Legal Services

Over 100 million Americans are signed up for pre-paid legal services. Also
called legal insurance, these plans are similar to those provided by Health
Maintenance Organizations (HMOs) and cover the legal needs of the member,
spouse and any dependent children.

In a prepaid legal service plan, the customer pays a fixed monthly
subscription fee of up to $25 for the services of pre-selected lawyers.
The most basic plans provide advice and consultation by telephone. Plan
members receive a few hours of free office consultation with their assigned
attorney. They may also include review and advice on simple legal documents,
preparation, drafting or an update of a simple will. Phone calls and letters
can be written on behalf of members, a service helpful for credit problems
and consumer protection.
More comprehensive plans cover clients personal legal needs ranging from
services that require more time and effort on the part of your attorney,
such as contracts, wills and deeds, to legal representation in negotiations
and courts cases related to family matters, bankruptcy and real estate
issues.

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Prepaid and Small Business

Legal advice for small businesses does not have to be expensive. With
pre-paid legal plans, a wide array of legal services designed specifically
to cater for the needs of small businesses is available for a set yearly
fee ranging from $125 to $300.

Although coverage differs across the board, most pre-paid plans offer
unlimited telephone consultation with a lawyer, a valuable service that is
enough to solve many small-business matters. This encourages
preventive law: the process whereby you identify legal problems that
affect your business, contact your lawyer and get advice on taking steps to
minimize them.

Basic plans provide coverage for simple contracts and the drafting of
simple legal documents, like a power of attorney or a bill of sale. More
comprehensive plans will deal with more elaborate matters like equipment
lease and accounts-receivable collection work.

If you are a member of a local chamber of commerce, trade or professional
group than you can get a plan at a reduced group rate. Otherwise, buy
directly from a commercial vendor.

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Differences between Pre-Paid and Legal Plans

It is not uncommon to see the terms legal plans and pre-paid legal
services used interchangeably. While they share a lot of characteristics
in common, there are a number of differences you should be aware of.

Both of these terms refer to an arrangement whereby you pay a fixed monthly
or yearly fee in exchange for legal services. The idea behind them is to
save consumers on high legal fees whilst offering a valuable service.
Thats where the differences lie: what kind of service is offered and what
is covered. What are you entitled to in both schemes?

Pre-paid services cover for specific legal services: free phone
consultation and advice, drafting of simple wills and trusts, review of
sample contracts and writing of letters on your behalf. Legal services not
provided will get charged at regular attorney fees, but you may be eligible
for discounts.
Legal insurance, by contrast, works much like other insurance plans, like
health or car insurance. Although specific legal services are offered at
times, your insurance provider will typically offer a policy that covers
for all legal services. The policy will pay on behalf of you, the policy
holder, or reimburse all expenses, costs or fees that you pay for legal
services up to the policy limit. For instance, your policy might reimburse
any fees incurred in your court judgments or pay your bail money a
service not provided by most pre-paid legal plans.

Your legal insurance is also pegged to other insurance policies you may
already have. If you run into legal problems involving your other
insurance, then your legal insurance policy will protect you against loss
or liability. For instance, if you are involved in a car accident when your
auto-insurance has already run out and you are subsequently sued for
recovery of damages, you will be protected by a legal plan insurance.
The other difference between the two schemes is related to your choice of
attorney. In a pre-paid legal service, you get to choose from a restricted
number of the attorneys in the network. By contrast, a legal insurance plan
provides legal coverage regardless of attorney. You are free to set up
interviews with any number of attorneys and choose the ones you think will
provide the best service for your personal legal needs.

Finally, pre-paid legal plans are much more accessible to the general
public. Legal plans are harder to come by as only a limited number of
insurance companies offer such arrangements.

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Comprehensive access plans

If you are a member of a pre-paid access plan and are not getting the legal
services you think you need, then it is probably time to upgrade to a more
comprehensive plan.

A comprehensive prepaid legal service plan is designed to cover for the
majority of your legal service needs in a given year. Access services, such
as legal advice and information by toll-free number and follow-up service,
are provided at no cost to you. Its in the realm of more complex legal
matters that require more time and effort from your attorney, that the
comprehensive plan is more beneficial than a basic, access plan. You can
have your trust set up, instead of a simple will, and a more complicated
business sale contract drawn up as opposed to a simple contract. Legal
representation can equally be provided in court for some cases, such as
child custody.

Comprehensive prepaid plans are most suitable for people who need business
advice, have family trusts or own real estates properties.

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Look before you take the leap into pre-paid legal services

These are some of the question you should ask if you are considering a
pre-paid legal plan.

What is covered? Legal plans are offered in different models and differ in
the specifics of what they cover. While phone consultation and simple
drafting and reviewing of simple contracts are included across the board,
more elaborate and complicated legal matters are not covered.
Its best to review your own legal needs before you choose a legal plan.
Ask which legal services will you need most and then choose a plan that
provides the best coverage given those needs. For instance, if you are a
business owner, lawsuits, lease and contract negotiations could be high on
your list and you would be looking for a legal plan that provides coverage
accordingly.

What legal coverage do I already have? Dont pay for coverage twice! If
you
have car insurance, then you are covered for liability and medical
protection, home insurance covers you for injuries sustained on your
property Your existing insurance policies already cover some of your
legal costs and there is no need to pay for that coverage when you select
with a legal plan.

Does the company have an in-house procedure to handle complaints? One of
the stumbling blocks of pre-paid legal services is quality of service.
Newly-licensed attorneys, phone calls not getting answered and that
ointment on any client lawyer relationship: fee disputes, typically
involving bills made to your credit car to cover for services not included
in your contract This is just a specimen of the many problems people face
with their plan providers.
Make sure you select a plan that has clear guidelines as to how to settle
dispute when they arise. A company that has a good in-house mechanism to
handle complaints will generally assign a senior attorney with the
authority to handle customer complaints of and disputes with any attorneys
in the network. Secondary sources of resolution may include your state
insurance department or bar association. Check their outlet for complaints
against pre-paid services.

What is the quality of the work they provide? Youll need to do some
homework before you select your legal provider. Ask these questions:
Whats the firms reputation in my area? How many years have they been
in business? Have they been operating in my local area for at least a year
without complaints? How skilled are they attorneys? Do they cover the
locale where my business operates? Some good places to start your
background research are your state bar association, the Better Business
Bureau and the Consumer Affairs Office.

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Pre-paid legal services for small business

If you are operating your own business, you cannot afford to go it alone
when it comes to legal matters. The ever increasing complexities of law,
spiralling costs of lawsuits and the proliferation of government red tape
can land you in a lot of trouble.

The flip of the coin is hardly attractive either! Hiring a lawyer can
constitute a substantial financial investment many cash-strapped small
businesses and entrepreneurs cannot sustain. Lawyers charge a minimum of
$200 per hour when it comes to business law and it can get very
costly if you are involved in lengthy legal procedures, complicated
contracts or business transactions.

There may just be a glitter of hope in pre-paid legal plans. For a set
monthly price, some legal providers are now bundling a whole suite of
legal services especially tailored to the needs of small-businesses.
Whether you need phone consultation on the legal complexities of a lease
contract, or require legal representation during tax audits, a pre-paid
plan can help you manage legal costs. An array of services is included as
standard coverage at no cost to you in the plan, and any legal matters
not covered can be provided with a discount on fees.

Before you take the leap, you need to keep some caveats in mind.

You need to know more about the quality of service you are likely to get.
While lower fees do not necessarily infer lower quality of work, it is
always necessary to bear in mind that legal specialization plays a crucial
part and lawyers are not interchangeable. Ask for references from previous
clients or ask entrepreneurs whove used the services of the provider about
the quality of work they have received from them. Use your state bar
association, service organizations in your locale and your local Better
Business Bureau to research law firms and the background of the attorneys
in the network before selecting them. Things to look for are the number of
years they have been operating, complaints from previous customers, the
education background of attorneys, professional track record and so forth.
With the increasing amount of small businesses involved in litigation and
fee disputes with their legal providers, I iss important to give some
thought to alternative courses of actions when dealing with disputes. Ask
your prospective provider about the way in which they settle disputes or
complaints. Do they have an in-house procedure to deal with complaints,
appoint a senior attorney to deal with such things or do you simply have to

settle out of court?

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Benefits of Pre-paid legal plans

Pre-paid legal services can be a very attractive alternative to hiring a
lawyer for many people. You should consider the importance and relative
priority of these benefits in light of your own legal needs.
So what are the benefits going pre-paid compared to conventional hire of
lawyers?

Benefit Number 1: Cost-Effective

Pre-paid legal plans can take the sting out of hiring a lawyer. Lawyers
fees are prohibitive for most people: you can run bills of thousands of
dollars and this is simply out of reach of most working and middle-class
families.
With pre-paid plans, what you get charged is more in line with what you
pay for your health or home insurance. Plans start as low as $9 per month
and typically dont exceed the $30 mark.

Benefit Number 2: Simplicity

There is a number of very complicated set of fees lawyers charge:
contingency fees, flat fees, statutory fees and hourly rates. In the case
of contingency and statutory fees, you have to get into the intricate
details of how these fees are computed say for a contingency fee how
much is the lawyers commission? and their regulatory nature who
regulates the statutory fee and how do I know if these fees are in line
with regulatory guidelines?-.
The other two types of fees can be equally as complex. Increasingly,
attorneys choose to incorporate any overheads they incur, like secretarial
expenses, parking charges and travel fees into their flat and hourly fees.
They can also set a minimum number of billing units, like three tenths of
an hour (18 minutes), irrespective of how long it takes them to deal with
your problem.
This is just a sample rundown of what might influence the various fees
charged by lawyers, other factors and arrangements can apply too. Contrast
this with the simplicity in which pre-paid legal services are priced and
furnished. The process is simple and straightforward: you sign an agreement
to pay a fixed monthly fee and thats about it. If what youre looking for
is not covered, your plan provider will give you a prior notice of a
different billing so that you know exactly how much you will be charged.

Benefit Number 4: Pre-emptive Law

Pre-paid plans offer unlimited phone consultation and advice. This aspect
of the service can save you a lot of trouble, money and time in the
future. Most legal problems you are likely to face in your day-to-day life
can be solved if you take the necessary steps in line with the law. With
the right advice and consultation with your lawyer, you can detect legal
blunders before they occur and hence minimize the risk of litigation and
protection.

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Common Services offered by Pre-paid legal Plans

Considering a pre-paid legal plan? Hes a run-down of the services
youre most likely to get and also some legal documents you need to sign
before you enrol.

Telephone and Office Consultation: You have unlimited telephone access to
a panel of attorneys regarding any legal matter of interest to you. You
can also make brief consultation visits to your lawyer for up to 30
minutes per day at no cost to you.
The only condition placed on these two benefits is that you enquire about
a different legal matter.
This aspect of coverage provided by legal plans is one of the most
beneficial because it promotes preventive law. Preventive law is very much
like preventive medicine it helps in anticipating potential problems and
taking the appropriate legal steps so that unnecessary legal problems or
risks are avoided. With a simple phone call to your lawyer you can avoid
getting embroiled in a hellish legal situation, and you can even identify
legal rights you dont even know you had.

Follow-Up Service: The panel of lawyers will write letters and make phone
calls on your behalf to adverse third parties. Such follow-up service may
be all it takes to solve many of your legal problems.

Legal document review: Simple personal legal documents, such as your
insurance policies, sales contracts and leases will be reviewed. Any
questions of legal nature that you have about the documents will also get
answered by your attorney.

Drafting of wills: A will is a written document that regulates how you want
your property distributed after your death. Your attorney will draft your
will according to your states laws so that its valid when you die. He
will also advise you on any provisions you might want to consider, such as
appointing a guardian and establishing a trust.

Discount on regular fees: Any additional services not covered in the
written fee agreement will be at regular fees either hourly or flat
with a discount between 20 to 30%. These services generally include family
matters, such as divorce and the custody of children, and court
representation, such as traffic tickets and lawsuits.

Some of the legal paperwork you need to read carefully, agree on and sign
include the following:

Written fee agreement: This is an agreement that outlines what services are
provided in the plan, how much it costs and the methods of payment.

Grievance procedure: This document details the procedures that will be
taken by the provide to resolve any complaints about attorneys or disputes
regarding service fees.

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