Why People Drop Out of
Prepaid Legal Service Plans
You may be covered when it comes to health, life, car
or home insurance, but what about legal coverage? Most
Americans will be involved in some kind of legal matter at
least once during their life times. Attorney fees can be
expensive, starting at $100 an hour and ranging up to $1,000
per hour.
The Concept of Prepaid
Legal Services
With the such a strong possibility that having to hire a
lawyer will be necessary at some point, prepaid
legal services may be what you need for peace of mind. The
concept is simple. For a fixed monthly subscription, you
get telephone access for lawyer advice. You pay a fixed amount
in advance each month to defray the cost of legal services
furnished in the future. These services cover various legal
practices, from reviews of simple legal documents and the
writing of a simple will to more comprehensive coverage
of divorce, bankruptcy and real estate issues.
Prepaid legal services can be an attractive idea for
people who don’t have the resources to retain a lawyer on a
regular basis. With a prepaid legal plan, you effectively have
a network of attorneys you can call on for preliminary basic
advice or simple issues. Services not covered by the plan
are generally available to members for a discount on
regular hourly rates or for flat fees.
Why Do New Subscribers Drop
Out?
As appealing as the concept of prepaid legal
services may seem, more than half of new subscribers drop
out after their first year. One reason is that members do not
require any legal help during their first year, so they
opt out. Another reason is that the scope of legal services
available under the prepaid legal plans are extremely
basic and limited in nature. Most plans have certain caps or
maximums as far as benefits provided are concerned, and purport
to offer discounts on standard attorney fees instead. By simply
calling around, you could probably negotiate a lower rate than
the one being offered as a benefit under the prepaid legal
insurance.
Another problem with prepaid legal insurance plans is the
likelihood that your project will be assigned to a novice
attorney. Because of cost considerations, it is typical that a
trainee or inexperienced attorneys is assigned to handle phone
consultations and the drafting of simple legal documents
provided as benefits under the prepaid legal services plan.
Finally, others may drop out of the prepaid legal services
plans because there is no rapport and understanding built with
an attorney. This is because most of the work is done
over the phone and there is never an opportunity to know a
lawyer on a personal basis.
"Why People Drop Out of
Prepaid Legal Service Plans" by Brent
Danielson
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