Definition of Legal Insurance

Definition of Legal Insurance thumbnail
Legal insurance provides access to basic legal services in exchange for premiums paid.

Legal insurance, sometimes referred to as pre-paid legal, is a niche category of the insurance sector in which the product provides benefits to pay for legal costs for covered events.

  1. Basics

    • An American Bar Association survey showed 70 percent of middle income Americans can not afford basic legal expenses. Legal insurance is intended to make available otherwise unaffordable legal protection at an financially viable premium cost.

    Benefits

    • Benefits of legal insurance include many basic legal transactions, beginning with a consultation. Other common covered events include wills, adoptions, civil and criminal lawsuits, traffic offenses, real estate transactions, rental disputes and bankruptcy.

    Sector

    • Legal insurance can be purchased by individuals or groups. Many employers now offer employees access to group legal insurance benefits. This enables employees to pay modest premiums, yet have access to otherwise unaffordable legal services. Many law firms join group legal insurance networks and agree to reduced fees in exchange for network membership.

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References

  • Photo Credit US Supreme Court image by dwight9592 from Fotolia.com

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