Legal Plans

A top-producing employee who faces a legal emergency can all of a sudden become unproductive.  What can you do as an employer to help the employee, as well as minimize the impact on your company?  Many companies are offering legal insurance plans as an answer for this problem. 

The plans are fairly simple:  for a monthly membership fee--generally between $10 and $25--you can get a lawyer to perform a number of free services, such as drafting a will, reviewing documents, offering telephone advice and writing letters on behalf of your employees.

They also provide other common legal services, such as traffic-ticket defense or a simple divorce, at flat rates much lower than  would normally be charged.  For more complicated legal services, such as courtroom representation, the hourly rates are deeply discounted as well.

How is this possible?

The lawyers who participate in these plans (and who generally have their own practices) benefit because they receive monthly fees for a group of people, but don't need to provide services for all of them.  In addition, they save money on advertising to drum up new business.  The result is they can afford to charge discounted rates.

Most people participate through their employer, though there are plans you can contact independently if your company doesn't offer them.  Plans usually assign a lawyer at the time you sign up, but if you are not satisfied with the one selected you can request a new lawyer.  Customer service is available if you have a question or complaint.

Who benefits most?

People contemplating large life decisions--such as getting married, having kids, buying a house or starting a business--are especially likely to benefit from legal plans.  If you have complicated but nonurgent tax questions, you may find a legal plans useful as well.

Benefits can vary in subtle ways from plan to plan, so you should read the fine print before signing up.  Some plans exclude discounted service on "pre-existing" legal matters.  Membership fees also can vary by state. Most plans offer discounts of up to 25% off "reasonable and customary" rates for complicated legal services, but those rates can differ widely by locale.