Questions to Ask Before Choosing a Pre-Paid Legal Plan
If you’re thinking about signing up for a pre-paid legal plan, it’s important to ask the right questions before making a decision. Not all plans are the same, and understanding what you’re paying for can save you a lot of frustration later. Here are a few key things to consider:
1. What’s Actually Covered?
Pre-paid legal plans vary in what they include. Most will give you access to phone consultations and help with drafting or reviewing simple contracts. However, more complex issues—like lawsuits or complicated negotiations—are usually not covered.
Before committing, think about your personal or business legal needs. For example, if you’re a business owner, you might need coverage for lawsuits, lease agreements, or contract negotiations. Make sure the plan you choose covers the services that matter most to you.
2. Do I Already Have Coverage?
Don’t waste money paying for coverage you already have. Many existing insurance policies include some legal protections. For instance, car insurance usually covers liability and medical protection, while homeowners insurance often includes coverage for injuries on your property. Review your current policies carefully so you’re not paying twice for the same benefits.
3. How Are Complaints Handled?
One of the most common problems with pre-paid legal services is inconsistent quality. Some plans rely heavily on newly licensed attorneys, or they leave clients waiting for calls that never come. Another frequent issue is billing disputes, where charges appear for services not included in your contract.
To avoid these headaches, check whether the company has a clear, fair system for resolving complaints. A reliable provider should have an in-house process—often involving a senior attorney—to handle disputes quickly. Also, see if your state insurance department or bar association has received complaints about the company.
4. What’s the Quality of Their Service?
Not all legal providers are created equal, so it’s worth doing a little homework. Ask questions like:
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What’s the firm’s reputation in my area?
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How long have they been in business?
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Do they have a history of complaints?
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Are their attorneys experienced in the areas I need?
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Do they actually serve the location where I live or work?
Good resources for background checks include your state bar association, the Better Business Bureau, and your local Consumer Affairs Office.