What is a prepaid legal scam? To answer that we need to understand what prepaid legal services are.
The features vary from plan to plan, however in general the services provided include: discounts on legal services offered through a network of legal attorneys, access to to legal forms and documents, and some free legal services such as a simple will or preparation of a property deed.
The plans purchased like insurance with a monthly premium, which may be between $300 - $500, to prepay for any legal expenses they may need [a bit like medical insurance].
The businesses that offer prepaid legal services provide it by contracting a network of attorneys who have agreed to provide legal services to members at a discount.
Your monthly premium provides you with a lower price on legal services when you need them.
It is vital to understand what services are provided in the plan offered. Some people have labeled the services a scam because they have signed up to a plan, only to find out later that the legal services they need are not covered under that plan.
A lot of the plans are sold using network marketing [MLM] and the person selling the plan who is receiving a commission for the sale, may exaggerate or inaccurately describe the plan. Reading and understanding what the plan offers is important.
Some people decide to sell legal service plans, as a way for extra income, or as a job. Some organizations charge you for the privilege of selling their plans [about $250], and you may also have to pay extra for training [an average amount is $500].
Network marketing, and these prepaid legal plans are not suited to everyone, with some organizations reporting that over half of their associates never sell a plan at all. Combine that with the fact that over half of people who sign up to the plans, cancel after a year, and it indicates you need to be sure that this is the opportunity for you.
There has also been some legal battles along the way claiming a prepaid legal scam.
Ask for the following:
Be aware that there are attorneys and legal aides who offer free consultations, and sometimes the discounted services provided by the Prepaid Legal organizations, can be purchased cheaper elsewhere.
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