Why Legal Services & Legal Insurance Plans Are The Future

Even though pre-paid legal services have been around nearly 50 years, legal insurance and/or legal services plans are growing as well as their consumer or member base and provide access to attorneys for legal assistance, including drafting and reviewing documents and consultation or representation in court for many common legal matters. It is also called group legal or pre-paid legal. This type of plan or insurance is most often included as part of a workplace benefits package. Employees can choose to opt for a legal services plan or legal insurance for which they will pay a set monthly premium or yearly fee and have access to experienced attorneys.

Employment of lawyers is projected to grow about 9-10 percent from today to 2031, about as fast as the average for all occupations. There is still a high demand for lawyers in the United States. Demand for legal work is expected to continue as individuals, businesses, and all levels of government require legal services in many areas according to the U.S. Bureau of Labor Statistics.

Reasonable access to adequate and affordable legal services like health care has become a necessity of life.

Still, the majority of Americans do not have access to affordable legal services. When the World Justice Project measured the accessibility and affordability of civil justice in 113 countries around the world in 2017, the United States tied for 94th place with Cameroon, Uganda, and Zambia. This rating measured whether “ordinary people” could resolve their grievances affordably in the U.S. justice system. This measure showed how widespread the problem is regarding affordable legal services. Contrary to popular belief, it is not just low-income people who cannot afford or have access to legal services but rather includes an estimated 60 percent of the legal needs of middle-income people that are not being met.

Legal insurance and legal service plans are a solution that many employers are using to provide their employees access to legal services for a reasonable price.

These legal insurance or services plans connect people with attorneys who can offer a wide range of legal services, from telephone advice to court representation. These plans use a network of attorneys who have agreed to provide services as part of their contract with the organization selling the plan or insurance to its members. There is always a free initial consultation and later, when retaining the attorney, there are typically no bills or there is a set discounted fee provided the plan member or prospective client who uses a network or panel attorney. 

Legal insurance often covers a wide variety of legal issues, covering nearly everything except workplace matters or business matters. A legal plan or legal insurance will likely come in handy during most situations where legal issues arise.

Historically, Americans have come to think of the legal system as a highly undesirable and expensive final option, and something to be used only when all other viable solutions have been exhausted. One American Bar Foundation study found that only 24 percent of people with civil justice problems used an attorney. According to the Social Science Research Network-these were people dealing with “troubles that emerge at the intersection of civil law and everyday adversity, involving work, finances, insurance, pensions, wages, benefits, shelter, and the care of young children and dependent adults, among other core matters.”  In other words, they were dealing with everyday legal matters that could almost always benefit from an attorney’s guidance, yet attorneys were not hired nor even consulted. Another study found that manypeople are going online and trying to manage these issues alone instead of working with a professional. This is a major concern for several reasons, including that it means people are not getting the best legal outcomes, and when people represent themselves, it slows down the process of the already struggling courts and justice system.

Cost is another significant factor that prevents consumers from working with attorneys. Many working-class Americans believe they cannot afford or may lose money even if they win by retaining an attorney.

Legal insurance and legal services plans remove many of the barriers between attorneys and potential clients. Since the legal plans are aware that consumers are looking online for legal information, they provide online resources that educate legal plan members on the importance of working with an attorney. They guide them through the process of connecting with an attorney so that they become more comfortable using attorneys for a wide variety of legal issues. The foregoing promotes the use of attorney services without increasing the burden on attorneys to be more accessible to clients.

Finally, the most important aspect is that legal plans help overcome financial barriers by standardizing the cost for individuals. For a monthly or yearly premium, the members get access to network or plan attorneys when they require legal assistance.

Attorneys also benefit from more people having legal insurance or legal services plans since the consuming public are more likely to use an attorney’s services instead of trying to resolve an issue on their own.

With employees getting the legal support that they require; employers have found they are more productive and less stressed. In turn, this situation improves the employer’s bottom line and helps them recruit and retain the type of high-caliber workforce they desire.

The impact of affordable legal services extends beyond the corporate world, it affects all areas of a community.

The satisfaction of legal services and legal insurance plan members with employers who offer said benefit and attorneys who participate in the network is outstanding. However, the reason the use of these plans is NOT widespread is since many are not aware of what legal insurance or legal services plans are or that they even exist.

If more residents of Florida or even of the U.S. become aware that legal insurance and/or legal services plans are an option for them, and more attorneys realize the benefits and join legal plan networks, perhaps in the future the nation will see its ratings for access to affordable civil justice rise from the bottom of the list to the top, near countries like Germany, Denmark and the Netherlands, which are countries that offer, support and promote access to legal services.

Even if an individual or family do not anticipate any legal problems or the need for an attorney, ensuring that one has some legal protection should the need arise is invaluable. Further, it is worth noting that not every legal issue involves a conflict, often it proves beneficial to have a lawyer on one’s side to guide them through complex documents or agreements.

If an employer offers legal insurance or legal services plan as part of their employee benefits package, it could end up saving a substantial amount of money and anxiety.

The foregoing is a very brief and general overview of the benefits of having a legal services or legal insurance plan in Florida.

If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI in Miami Lakes, Florida.