Differences between Pre-Paid and Legal Plans

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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...

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