Prepaid Legal Fees

Prepaid Legal Fees

$75 (2008).  Cost per month for prepaid legal plans for small businesses.  “Pre-paid legal plans give businesses access to a network of attorneys who agree to provide services for free or at discounted rates. Monthly small business rates are about $75.” (Linda Bryant, “Pre-paid legal services gain traction with small businesses,” Nashville Business Journal, Friday, March 7, 2008)

$26 per month (2002).  Monthly cost for prepaid legal services.  “David Cohn of Miami Beach said lawyers have priced themselves out of the working-class market.  He counted himself among those deprived of access to the legal system.  Then he bought a $26-a-month membership in major HMO legal insurer Pre-Paid Legal Services (NYSE: PPD) headquartered in Ada, Okla.  ‘One day, I lost my wallet and feared I would have my identity stolen and worse,’ said Cohn, 30. So he called Pre-Paid Legal Services provider law firm Glantz & Glantz in Plantation.  ‘They ticked off all the things I needed to do to protect myself, and it just gave me peace of mind, and I thought, 'Why doesn't everyone else need this service?’” (Stephen Van Drake, “Legal HMOs,” South Florida Business Journal, Friday, November 29, 2002) 

$14.95.  Monthly fee available to employees in companies with legal insurance plans through Pre-Paid Legal Services.  “Pre-Paid Legal Services . . . offers a discounted plan to companies, which they can offer to their employees as a fringe benefit at $14.95 per month.”  (Becca Mader, “Prepaid legal services promote via ex-jocks, handmade signs,” The Business Journal of Milwaukee, Friday, July 13, 2001) 

$10 - $18 (2005).  Monthly premiums charged per employee for legal services insurance at United Parcel Service.  “Among those covered today [by legal services plans] are about 80,000 United Parcel Service employees, including the unit in Buffalo. Legal help has been part of UPS' flexible benefits package since the early 1990s, said Dale Whitney, health and welfare manager.  Employees - just about 10 percent of those eligible for benefits - have used it most often for wills. The recent end-of-life issues surrounding the Terri Schiavo case has prompted a flurry of requests for legal hand in writing living wills, appointing a health-care proxy and other advance care directives, Whitney said. . . UPS legal services will provide representation in cases of driving while intoxicated or felony or misdemeanor charges, Whitney said. Premiums range between $120 and $220  annually [between $10 and $18.33 per month], depending on the array of legal services. The plan is organized through a General Electric Consumer Finance company known as Signature Legal Care, one of several national organizations that offer the service to employers.  Another is Hyatt Legal Plans Inc., a subsidiary of MetLife Insurance.”  (Annemarie Franczyk, “The benefit is legal,” Business First of Buffalo, Friday, May 6, 2005)

$8.33 (2005).  Approximate average monthly cost for employees participating in legal insurance plans through their companies.  “Legal services vary in design and cost as much as health insurance options. The majority are group plans that cover in-office or telephone consultation and follow up services. Among them are: Correspondence, review of legal documents, counseling, referrals to specialist attorneys, according to the benefits institute.  Enrollment in the plans can be automatic or voluntary. In a voluntary plan, employees can opt into the legal plan and can pay a monthly premium. Some employers pay for the entire cost of the service for eligible workers. While typical costs are a few dollars a week, up to a little over $200 a year, the average is about $100 annually [$100/12 months = $8.33 per month], according to the [Employee Benefit Research Institute].”  (Annemarie Franczyk, “The benefit is legal,” Business First of Buffalo, Friday, May 6, 2005) 

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Generally speaking, attorneys are too expensive for the average American. (1)

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— Bonnie Anderson
Griffith, Indiana

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