Prepaid legal plans are a little like HMOs for health care. A prepaid legal service typically contracts with one law firm in each state that handles calls from businesses within that state. Under a prepaid legal plan, you pay a monthly fee – from as low as $10 to $100 or more – for a package of basic services such as:
- Unlimited phone consultations with an attorney
- A certain number of contract reviews and collection actions per month
- Discounts on other legal services.
Action Steps
The best contacts and resources to help you get it done
Review available plan types
In a prepaid legal plan, you typically pay in advance to cover the cost of future legal services. For a monthly fee, a prepaid access plan will get you phone consultations and a set number of additional services. A group legal plan generally lowers legal costs by discounting legal fees of a particular lawyer or firm. A comprehensive prepaid legal plan costs more than an access plan, but it covers an average of 80 percent of a person's expected legal needs, far more than an access plan.I recommend: See different legal plan choices at the American Prepaid Legal Service Institute (APLSI) Web site; you can also peruse its directory of prepaid plans.
Should you wait until you really need legal help?
One advantage of signing up for a prepaid legal plan is that you can tap legal help more quickly when you actually need it. Without such a plan, you might delay asking for advice because you don't want to pay a steep one-time fee – and holding off on advice might worsen your situation or at least delay resolution.I recommend: Prepaid legal plans are available through LegalSurvival.com, Legal Club of America, Advance Pay Legal Services, Preferred Legal Plan, and Pre-paid Legal Services, Inc.. (Business plans aren't available in all states through every vendor).
Can your employees benefit?
Aside from using a prepaid legal service for your business, you can offer coverage to employees and their families as part of a benefit package.I recommend: To set up prepaid legal services as an employee benefit, you can contact Pre-paid Legal Services, Inc., LegalSurvival.com, or Legal Club of America.
Who will be helping you?
Check the firm you'll be working with under a prepaid plan. Does anyone at the firm have small business experience, especially within your industry?I recommend: Ask the plan for the legal background of the attorneys who will be on call or search for their backgrounds yourself on Martindale.com.
Tips & Tactics
Helpful advice for making the most of this Guide
- Make sure you understand what's included in your plan and what you'll have to pay extra for.
- Remember that you'll likely talk to a different person each time you use the service. If you want to develop a relationship with one lawyer, you should skip legal plans.
- Ask how the legal plan handles conflicts of interest in case you have a dispute with someone who also uses the service.
- Before signing up with a plan, call local lawyers and see whether they'll offer an affordable payment plan should you ever need their services.
the Pre-Paid Legal Services page at Business.com
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