The Truth About Prepaid Legal Services Revealed!
At first it may seem like a complicated phrase, but once you break it down it is actually pretty simple. Prepaid legal services. Quite often what happens is that when someone is employed by a company; the company may offer them a legal insurance. Like all other insurance, this too works on a similar principle. You pay a monthly, quarterly or annual premium and you reap the benefits as and when you require legal help. This means all your legal help is covered by this sort of insurance.
So how does it help and what is its purpose?
As we all know legal services are expensive. They can often burn a hole in the pocket. So in order to make it more affordable and accessible, prepaid legal services (usually through a network of law firms) take care of some or perhaps even all the expenses like the ones charged by lawyers or even legal firms.
But you should be careful!
There are quite a few companies that are taking ill-advantage of this situation and trying their best to dupe people into believing that they are selling pre-paid insurances. Some companies are more legitimate than others and some, rightly or wrongly are referred to as a prepaid legal scam.
Who is Legal Shield?
Legal Shield a company that offered prepaid legal services in the United States and Canada. Their services appear to be every bit as legitimate as other prepaid legal insurance plan companies, but their had a pyramid structure style of marketing, also known as a multi-level approach has resulted in some controversy. In its former incarnation as "Pre-Paid Legal Services" they were accused of using illegal income to fund and promote their MLM approach and they were warned against doing such things.
They were even warned by the United States Securities and Exchange Commission to put a stop to addressing the commissions given to sales representatives as assets rather than pay outs like most insurance companies do. The legal shield scam reputation/controversy doesn't end there. They were up in arms against more than four similar cases and ultimately had to settle. While there are many complaints against the company, it does provide coverage to about 1.4 million families, which suggests that the scam accusations are a bit unfair.
So how does it help and what is its purpose?
As we all know legal services are expensive. They can often burn a hole in the pocket. So in order to make it more affordable and accessible, prepaid legal services (usually through a network of law firms) take care of some or perhaps even all the expenses like the ones charged by lawyers or even legal firms.
But you should be careful!
There are quite a few companies that are taking ill-advantage of this situation and trying their best to dupe people into believing that they are selling pre-paid insurances. Some companies are more legitimate than others and some, rightly or wrongly are referred to as a prepaid legal scam.
Who is Legal Shield?
Legal Shield a company that offered prepaid legal services in the United States and Canada. Their services appear to be every bit as legitimate as other prepaid legal insurance plan companies, but their had a pyramid structure style of marketing, also known as a multi-level approach has resulted in some controversy. In its former incarnation as "Pre-Paid Legal Services" they were accused of using illegal income to fund and promote their MLM approach and they were warned against doing such things.
They were even warned by the United States Securities and Exchange Commission to put a stop to addressing the commissions given to sales representatives as assets rather than pay outs like most insurance companies do. The legal shield scam reputation/controversy doesn't end there. They were up in arms against more than four similar cases and ultimately had to settle. While there are many complaints against the company, it does provide coverage to about 1.4 million families, which suggests that the scam accusations are a bit unfair.