There are several employers who provide benefits to their employees. These programs enable employees to save and prepare for the future more effectively. Plans are often comprised of health insurance and life insurance. Legal plans and legal plan coverage will be introduced under this topic.
Another benefit that businesses may provide to their employees is legal insurance or a legal plan. It’s similar to health insurance in that it’s a voluntary, employee-paid benefit that offers extensive legal protection. The Plan is intended to fulfill an individual’s and their family’s most typical personal legal requirements. It will be withdrawn from each paycheck, and employers will be able to obtain free legal guidance from attorneys.
Legal Plan Coverage
In general, voluntary legal plan covers advice and consultation services about a variety of personal legal matters, including:
- Identity theft issues,
- Financial concerns,
- Debt issues,
- Elder care matters,
- Family law concerns,
- Domestic relations and other family related matters,
- Tenant matters,
- Wills and estate planning,
- Power of attorney establishment,
- Real estate matters,
- Traffic defense,
- Personal injury claims,
- Civil litigation/consumer transactions,
- Criminal matters, to name a few.
Following are the type of legal plans in which an individual may avail:
- EAP (Employee Assistance Plan) legal plans,
- voluntary legal insurance plans,
- discounted legal plans, and
- prepaid legal plans.
Despite the fact that it is not available in the Philippines, the researcher discovered that it is available globally. International physical law firms include White & Case LLP and Baker McKenzie. They do not, however, provide legal services on a local level, but rather on a global scale. In addition, they provide legal planning services. To summarize, according to research, the legal plans are as follows: EAP legal plans, voluntary legal insurance plans, cheap legal plans, and prepaid legal plans.
Employee Assistance Plans
Employee Assistance Plans (EAP) legal plan, this is offered by an employer to employee as part of a benefits package. These legal plans are paid for through monthly premiums that is to be deducted automatically through payroll. Here, employees receive free consultations, a discounted rate for legal fees, and selected legal services, some at little or no cost, from a plan attorney. This plan gives an employee a wide range of options at a more affordable price than they would receive outside the plan.
Voluntary Legal Insurance Plans
Voluntary Legal Insurance Plans are also known as customizable plans which are often offered by employers to their employees. Common types of offers are not limited to the following: Personal injury, Real estate, estate planning, wills, Power of attorney, Tenant and property matters, Family law, Traffic defense, Debt, taxes, and personal financial matters, Identity theft and fraud, and Civil litigation.
Discounted and Prepaid Legal Plans
In Discounted Legal Plan, the rate is pre-negotiated. Attorneys after consultation will provide the client a discounted consultation fee after the service being rendered. Lastly, in Prepaid Legal Plan, like EAP, employers offer this to their employees. It shall be deducted to employees’ monthly payroll. Employees here set out the budget, the services to be availed, and the fees paid.
Effects of Legal Plans
The researcher discovered little consequences of legal plans. When a person obtains a legal plan, it is similar to when a person avails life insurance. It is a safeguard that an individual should have if he or she is involved in a future litigation or has issues that require the opinion of attorneys or the use of his or her own counsel.
It signifies that he/she is already covered for the charges that would be incurred as a result of the service that he/she obtained under his/her plan. The individual will be covered from the time he/she purchased the plan or, depending on the start date of coverage after payment of a particular sum, from the time he/she purchased the plan.
Comprehensive Legal Plan
If a person is seeking for the option that provides the most complete coverage and covers the most legal difficulties, a legal insurance plan is the ideal choice. However, legal insurance policies differ greatly in terms of what is provided.
When looking for a legal plan, keep the following in mind: Does the insurance provider provide more than one plan, either for you to pick one to offer your employees or for you to offer the employees two alternatives to choose from?
Is it feasible for workers to choose how they deal with attorneys under the plan? In terms of coverage, does the plan cover legal concerns regardless of whether the employee is the plaintiff or the defendant? For example, while most legal insurance plans give defense coverage, coverage for plaintiff issues, which account for the bulk of ARAG1 claims, is often not covered by other carriers.
Significant Queries
When looking for a legal plan, attorneys and interested individuals should consider the following questions:
- Are network attorneys chosen individually (rather than picking a whole firm) to guarantee that each attorney satisfies the qualifying requirements?
- Is there a way for attorneys to apply to join the network?
- What factors influence the choosing of attorneys?
- Are network attorneys evaluated on a regular basis to ensure that they stay qualified?
- Do plan participants get to pick the attorney they work with, or is one assigned to them?
- Is the plan able to make arrangements if there are no network attorneys in the plan member’s area?
- What if a member want to consult with an out-of-network attorney?
- Is the plan limited to certain legal issues?
Divorce is routinely a top-five used legal coverage (and may be highly expensive for workers who go through it), but some plans only provide legal counsel for uncontested divorces. These are critical questions. This will serve as guidelines for selecting an acceptable legal strategy based on the needs of the individual to be served. Though there are several options, it should match one’s needs because a legal strategy may not be convenient for him/her.
Distinctive Characteristics
All of these legal plans have distinct scopes, methods of obtaining services, and concerns for individuals who use them. Setting up legal plans in the Philippines will make it simpler for clients to contact the attorneys.
If there is a need for advice, there are always attorneys available. It is not necessary for meet-ups, although they may be facilitated immediately through phone call. This type of legal strategy is covered by Access. When we mention access, we mean that it is easily available to the general population.
These basic legal services can be provided at a modest cost. Consultation, drafting, or examining simple legal papers are all examples of this. Those who would most likely use this type of service require him/her to comply with a legal requirement rather than with any ongoing lawsuit or trial. Because it is available to the entire public, anyone can use it without having to pay any costs.
Complex Legal Issues
It would be classified as complete coverage for complicated legal matters since it provides broader and more sophisticated responsibilities for counsels. In terms of rate, an hourly rate should be requested rather than the fixed charge in the access legal plan.
It also provides a larger variety of services such as preparing complex legal papers, negotiating with opposing parties, and legal representation in court situations such as divorce and child custody. They also pay all of the fees associated with a court proceeding. Comprehensive plans, according to studies, often start around $300 per year and are most useful to middle-class families.
Group Legal Plan
It is frequently sponsored by an organization to its members under the category of group legal plan. The law firm hired makes it a priority to reduce the cost of coverage for all members and sponsors. Preparation of wills and trusts, document preparation and review, debt and real estate concerns, and family law are typical services. It is intended to address an individual’s and their family’s most prevalent personal legal needs.
After enrolling in the Plan, you will get the following: a welcome packet with information on how to access resources and network attorneys. If you require the assistance of an attorney in the office, you have access to hundreds of California attorneys who are members of the ARAG legal network.
Network attorney expenses are paid in full for the majority of covered situations, unless the Plan specifies that the covered topic is subject to an hourly restriction. Certain expenditures, including as filing fees, reporter fees, expert witness fees, and other associated expenses, are not covered by the Plan.
You also have the option of hiring an attorney who is not a member of the network. If the matter is covered by the Plan, you would make a claim for the attorney costs you paid and be repaid up to the Plan’s maximum amount.
In addition, the group legal plan covers 100 percent of network attorney costs for most eligible situations, including in-office counsel, representation, and consultation.
- Will and trust preparation;
- Domestic affairs (divorce, child support, custody, visitation, alimony, adoption);
- Minor traffic violations;
- Bankruptcy procedures;
- Consumer protection;
- Defense of criminal offences;
- Debt collection.
Buying or selling a house are all included services under the Plan. Identity Theft Protection is also included in the Plan, and it covers the following services:
- Single-Bureau Credit Monitoring,
- Child Identity Monitoring,
- Internet Surveillance,
- Identity Theft Insurance (up to $1 million),
- Full-Service Identity Restoration,
- Lost Wallet Services, and
- Change of Address Monitoring.
Final Thoughts
Lawyers will have to specify a standard price for the request made by their clients for legal planning. The Integrated Bar of the Philippines provides a set price, however Legal Plans proposes that rates be lower than typical and uniform. Pleadings, lawsuits, and other complicated tasks will be charged at a higher rate. However, when it comes to readiness, a legal plan is the best option. These are the benefits and drawbacks.
- Allgemeine Rechtsschutz-Versicherungs-Aktiengesellschaft [German-based legal insurance company Insurance Corporation][↩]