Differences Between Pre paid and Legal Plans
You may often find the terms “legal plans” and “pre-paid legal services” are used interchangeably. It is true that they share a lot of characteristics in common, but there are a number of contrasts that you should be aware of.
Both of these terms are used for a kind of arrangement with the help of which you pay a fixed monthly or yearly fee in order to avail legal services. Their main motto is to save customers on high legal fees as well as to offer a valuable service. But the main point is what is the difference between these two services? You can read on to find out:
Pre-paid services cover for certain specific legal services like consulting free of charge on phone and take unlimited advice, crafting simple wills and trusts for their customers, monitor the sample contracts and writing of letters on behalf of their clients. Legal services that are not offered by the services will get charged at a genuine fees, but you are eligible for any kind of rebate and discount.
On the other hand Legal insurance, works much like the working of other insurance plans, like health or car insurance. Although there are lots of legal services that are offered at times by keeping your need in mind, but your insurance provider will provide you a policy that covers for all kinds of legal services. The offers may include that the policy may pay your bills on your behalf, the policy holder, or reimburse some amount of money that you pay for legal services up to the policy limit. For example, your policy might reimburse the amount of money that might have incurred in your court judgments or the policy can pay your bail money – a service which is not normally provided by other pre-paid legal plans.
Your legal insurance might also have a collaboration with other insurance policies you may already have. If you end up in some legal problem, that may involve your other insurance, then your legal insurance policy will help you cover all your loss or liabilities. For instance, if you end up being in a car accident, but the situation is that your auto-insurance has already run out and now you are sued to pay for all kinds of damages, you will be protected by a legal plan insurance. The other difference between the two legal plans is linked with your choice of attorney. If you are going for a pre-paid legal service, then you can choose from only a restricted number of the attorneys that are available in the network. But on the other hand, a legal insurance plan provides legal coverage regardless of what ever attorney you choose for your case. You are free to avail the service of any kind of attorney that you think will provide the best service for your personal legal needs.