- Legal insurance is a type of insurance policy that you purchase and pay for with regular premium payments. Then when you need legal services, you choose from an insurance-approved network of attorneys. You may be entitled to certain standard legal practices as part of your plan. For example, if you need help with a traffic ticket or if you need to draft a will, this may be included in your policy.
- Although most legal insurance plans include basic services, large legal expenses are likely not included. When you go to court for a lawsuit or go through some other significant legal process, you have to pay out-of-pocket for most of these charges. The legal plan may help you get a renegotiated discount with a lawyer in its network, but this can still leave you with a large bill.
- Prepaid legal insurance is also sometimes called prepaid legal coverage. This is because you are essentially paying for your legal services in advance. By purchasing this type of insurance, you are simply paying your legal fees in the form of a monthly payment before you need them. In some situations, it could make sense to purchase both a prepaid plan and a regular legal insurance plan. This way, if your legal costs exceed that of what your prepaid plan provides, you can still be covered.
- Many of these plans are purchased through employers or made available as a benefit to employees. You can also purchase the insurance on your own from a private company. Before you purchase this type of plan, find out exactly what is covered. Some plans are more comprehensive than others. For example, some legal insurance plans offer multiple consultations, while others might give you only one phone consultation per year.
