Why offering a Pre-Paid Legal Plan with your company’s benefits package pays off for employees--and for you as the Owner.
A Pre-Paid Legal Plan is just what it sounds like: an arrangement that gives an employee access to the services of an attorney for a wide range of legal needs. Depending on the type of plan, the possibilities range from assistance in creating a WILL to contract negotiation to representation in divorce proceedings or for a major trial.
The number of employers offering pre-paid legal plans to their employers is growing, but right now, it’s still pretty small, only 34600 companies today offer the services as a benefit. According to the International Foundation of Employee Benefit Plans’ Employee Benefits Survey: U.S. and Canada 2009, about a quarter of respondents say they offer a legal services plan to their participants. The Society for Human Resource Management conducted a similar employee benefits survey and found that about 21 percent offer legal services.
The benefit to the employees is fairly straightforward. "It gives people access to the legal system," says Nick Serba of Pre-Paid Legal Services. "Most people are priced out of the legal system. They can’t afford it, or they don’t know someone who can help them."
Terry Perry, owner of PinkSlip, a three-person company in San Jose, Calif., was grateful for her company’s prepaid legal plan two years ago when she received a speeding ticket while out of town. She called and received an attorney’s assistance to get it settled quickly.
"The benefit is fantastic for those sorts of things," says Perry, who has offered the plan as a benefit to her employees for three years.
So what’s the payoff for employers? Studies have shown that employees who are satisfied with their benefits tend to be more satisfied with their jobs in general. Proponents of prepaid legal plan benefits say access to legal services tends to reduce employee absenteeism because employees can get the services they need. They don’t need to miss work to sort out their legal affairs.
"It keeps the employees in a more productive mode," Serba says.
It can be useful, Perry agrees, but she notes that some people may be reluctant to spend any additional money right now.
"I know people are cautious about how they’re spending their money," says Perry, who asks her employees to pay for this particular benefit if they want to use it.
The cost of offering this service varies, depending on which plan and administrator you choose. The American Prepaid Legal Services Institute estimates that the cost can range from $70 per year per employee to as much as $400 per year.
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With more and more companies offering a Pre-Paid Legal Plan as a Benefit to their employees - It is being called "THE NOW BENEFIT". For more information contact us to schedule a 15-20 minute meeting to find out more about how you can utilize this benefit to help productivity at your company. Keeping your employees at work! Keeping moral high! Keeping your retention rate hgher!
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When choosing a pre-paid legal plan, you should look to see exactly what services are covered. Ask if the service provider have an in-house procedure to handle complaints. Also, you need to make sure you select a plan that has clear guidelines as to how to settle dispute when they arise.
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