How Prepaid Legal Services Work

Over the course of the past twenty years, prepaid legal services have become more prevalent in different communities in the United States and in some other countries around the world.  You may have heard of prepaid legal services and yet not really understand what is involved with prepaid legal services -- not really know how a prepaid legal services plan actual works.

Prepaid Legal Services -- The Basic Elements

Prepaid legal services are plans in which a consumer pays a monthly fee and in return is able to receive certain limited types of legal services.  For example, most prepaid legal service plans include within their basic coverage representation in cases involving traffic tickets and DUIs.  Most plans allow a consumer the ability to obtain a simple Will at no charge.

In addition to services that the plan provides full coverage for, most prepaid legal services plans offer consumers or participants the ability to access other types of legal services and representation at a reduced fee.

The company that provides the prepaid legal service plan will contract with a local law firm that will provide the services to consumers who participate in the plan.  In this regard, you might want to take the time to “check out” the law firm that provides services for a particular prepaid legal services plan before you sign up for such a plan.

Prepaid Legal Services -- Not Insurance

Prepaid legal services plans are not insurance in the traditional sense of the word.  Many people call these plans “legal insurance.”  However, the simply are not.  These plans are more like membership clubs through which you obtain a product or service at a reduced fee by joining.

In many states around the country, the Insurance Commissioner has become involved in prepaid legal services -- despite the fact that these plans are not traditional insurance.  For an extended period of time, prepaid legal services plans largely were unregulated.  That essentially remains the case today; however, many states are requiring people who market these plans to register with the Insurance Commissioner’s office before they begin seeking customers.

In some states, you can obtain some basic information about which companies are offering prepaid legal services in your state by contacting the Insurance Commissioner’s office.

Prepaid Legal Services -- Is It Right for You?

You might be contemplating whether or not a prepaid legal services plan is correct for you.  In this regard, there are a number of different website on the Internet that provide information about attorneys, legal services and even prepaid legal services plans.  By visiting one or another of these websites you will be able to collect more information about prepaid legal services plans.  With this information, you can decide whether or not it is a good idea to sign up for a particular prepaid legal services plan.