Legal Insurance, also known as Legal Expense Insurance (LEI) or Prepaid Legal Services, is a type of insurance that helps individuals or businesses cover the cost of legal services. It’s a proactive way to manage the often high and unpredictable costs of hiring a lawyer.
✅ What Does Legal Insurance Cover?
Coverage depends on the plan, but common areas include:
🏠 Personal Legal Matters:
- Landlord/tenant disputes
- Consumer protection issues (e.g. faulty purchases)
- Property damage claims
- Identity theft support
👨👩👧👦 Family Law:
- Divorce (often limited coverage)
- Child custody/support
- Adoption
🚗 Auto-Related Legal Issues:
- Traffic tickets
- Accidents (not bodily injury—just legal representation)
- License suspension hearings
⚖️ Employment Law:
- Unfair dismissal
- Workplace harassment
- Discrimination claims
🧾 Wills & Estate Planning:
- Drafting wills, trusts, or powers of attorney
❌ What’s Typically Not Covered
- Pre-existing legal issues
- Business-related disputes (unless it’s a business plan)
- Serious criminal cases
- Class actions or mass torts
- Fines, penalties, or damages awarded against you
💰 Cost of Legal Insurance
- Individual plans: $15–$40/month
- Family plans: Slightly higher
- Employer-provided plans: Often part of a benefits package
🏢 Major Providers
- ARAG Legal Insurance
- LegalShield
- MetLife Legal Plans (formerly Hyatt Legal)
- LegalZoom (offers limited prepaid legal access)
🧠 How It Works
- You pay a monthly premium.
- When a legal issue arises, you contact the insurer.
- They assign you to an in-network attorney, or reimburse part of your costs if using out-of-network counsel (depending on the plan).
- Some services are fully covered, others are discounted.
👤 Who Should Consider It?
- People with frequent legal needs (e.g. rental disputes, divorce, estate planning)
- Employees whose employers offer it as a benefit
- Small business owners (some providers offer business legal plans too)
If you want, I can help you compare plans, assess whether legal insurance is worth it for your situation, or find providers in your region. Would you like to do that?