It is quite common to see the terms 'legal insurance plans' and 'pre-paid legal services' used interchangeably. This is indeed an oxymoron, as their similarities - and differences - are quite numerous if you come to think of it.
The very obvious similarity between the two would be that they are both ways to avail of legal services in exchange for paying a fee, either per month or yearly. The objective of both of these plans is also similar, as they can both save you some money on your legal expenses, but again, there are many differences - here are a few of them:
Pre-paid legal services cover specific services that include free phone consultation and advice, drafting of standard wills and trusts, reviewing of contracts and writing legal letters on your behalf. Other legal services not covered in the terms of these plans would be subject to standard attorney fees, but some firms would still offer discounts on these premium services.
The very obvious similarity between the two would be that they are both ways to avail of legal services in exchange for paying a fee, either per month or yearly. The objective of both of these plans is also similar, as they can both save you some money on your legal expenses, but again, there are many differences - here are a few of them:
Pre-paid legal services cover specific services that include free phone consultation and advice, drafting of standard wills and trusts, reviewing of contracts and writing legal letters on your behalf. Other legal services not covered in the terms of these plans would be subject to standard attorney fees, but some firms would still offer discounts on these premium services.
Legal insurance works much like other types of insurance such as health and vehicle insurance. There may be some legal services initially offered, but this plan is, in reality, a policy, that covers every possible legal service on demand. There would always be a specific limit for coverage of legal services, or a limit to the amount of money that can be reimbursed. If you incur fees due to a court judgment or have to pay some bail money, these two would be covered under this plan, unlike pre-paid legal plans where they aren't.
The legal insurance policy also gives you adequate coverage against loss or liability you may incur on other insurance plans. Let's cite an example - if your vehicle insurance is already used up, you can rely on your legal insurance plan for coverage if the driver of the other vehicle sues you in the event of an accident.
There is yet another important difference between the two, and this is with regards to selecting a lawyer. A pre-paid legal service would only allow you to choose lawyers who are part of their network, and this is usually limited to one firm only. There are no such limitations for legal insurance, where coverage still exists regardless of your choice of lawyer or law firm.
Pre-paid legal plans are however far more accessible, with many reputable law firms offering these plans. Legal insurance, on the other hand, may not be offered by your insurance provider - in fact, it is only available on a few, and it usually takes much to qualify.
Think of your needs carefully before making a decision. How often you feel you will need the services of a lawyer, the type of legal pro
The legal insurance policy also gives you adequate coverage against loss or liability you may incur on other insurance plans. Let's cite an example - if your vehicle insurance is already used up, you can rely on your legal insurance plan for coverage if the driver of the other vehicle sues you in the event of an accident.
There is yet another important difference between the two, and this is with regards to selecting a lawyer. A pre-paid legal service would only allow you to choose lawyers who are part of their network, and this is usually limited to one firm only. There are no such limitations for legal insurance, where coverage still exists regardless of your choice of lawyer or law firm.
Pre-paid legal plans are however far more accessible, with many reputable law firms offering these plans. Legal insurance, on the other hand, may not be offered by your insurance provider - in fact, it is only available on a few, and it usually takes much to qualify.
Think of your needs carefully before making a decision. How often you feel you will need the services of a lawyer, the type of legal pro
The legal insurance policy also gives you adequate coverage against loss or liability you may incur on other insurance plans. Let's cite an example - if your vehicle insurance is already used up, you can rely on your legal insurance plan for coverage if the driver of the other vehicle sues you in the event of an accident.
There is yet another important difference between the two, and this is with regards to selecting a lawyer. A pre-paid legal service would only allow you to choose lawyers who are part of their network, and this is usually limited to one firm only. There are no such limitations for legal insurance, where coverage still exists regardless of your choice of lawyer or law firm.
Pre-paid legal plans are however far more accessible, with many reputable law firms offering these plans. Legal insurance, on the other hand, may not be offered by your insurance provider - in fact, it is only available on a few, and it usually takes much to qualify.
Think of your needs carefully before making a decision. How often you feel you will need the services of a lawyer, the type of legal problems you expect to have, as well as the cost of the different plans will have to be weighed up before you make a decision. Having some form of legal protection is advisable, and both plans have their benefits.
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There is yet another important difference between the two, and this is with regards to selecting a lawyer. A pre-paid legal service would only allow you to choose lawyers who are part of their network, and this is usually limited to one firm only. There are no such limitations for legal insurance, where coverage still exists regardless of your choice of lawyer or law firm.
Pre-paid legal plans are however far more accessible, with many reputable law firms offering these plans. Legal insurance, on the other hand, may not be offered by your insurance provider - in fact, it is only available on a few, and it usually takes much to qualify.
Think of your needs carefully before making a decision. How often you feel you will need the services of a lawyer, the type of legal problems you expect to have, as well as the cost of the different plans will have to be weighed up before you make a decision. Having some form of legal protection is advisable, and both plans have their benefits.
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