During open enrollment, employers often focus on core benefits like health insurance and retirement plans. But with three out of four individuals having faced legal troubles in the last three years,1 more and more employees are looking to legal insurance as a voluntary benefit – and asking how it can help them.
As you introduce employees to the advantages of a legal insurance benefit, here are some common employee questions you might want to address.
How does legal insurance work?
Legal insurance is designed to provide affordable access to attorneys and legal services through a nationwide network, similar in structure to health insurance. It gives employees access to a network of attorneys they can contact for assistance with things like legal advice, document review and representation.
Some of the things that make a legal insurance benefit plan unique are that in most cases, an employee’s acceptance into the legal plan is guaranteed. They can purchase a plan and receive dependable coverage as long as they pay their premium. And unlike some other types of insurance, there's no waiting period. Employees can get the professional legal help they need once their plan is effective. Finally, most legal insurance plans have no usage limits, which means employees can get legal assistance multiple times throughout the year at the same low rate.
How can employees use legal insurance?
Legal insurance can be used to help employees plan ahead to protect what's important, like their family, finances and future through estate planning – but it’s also so much more than estate planning. For example, they can create a pre-marital agreement, handle a landlord disagreement, deal with a speeding ticket, get consumer protection help and manage financial challenges. Plus, many plans also provide access to online tools and resources, such as DIY Docs®, Estate Planning Navigator, Demand Letter and a comprehensive online Learning Center.
How much does legal insurance cost?
The price of a legal insurance plan from ARAG can vary based on the specific plan design, but it is typically around $20 per month. It is conveniently deducted from employees’ paychecks like other benefits. With hourly attorney fees currently averaging $341 across the U.S.,2 comprehensive legal insurance plans are designed to cover these fees, giving employees access to legal support without out-of-pocket expenses for most covered matters.
How is a legal insurance plan different than what's offered through an employee assistance program (EAP)?
Unlike EAPs, legal insurance is designed for both proactive and ongoing legal matters – not just one-time consultations. EAP plans vary on the depth and variety of services they offer but typically offer employees access to an initial legal consultation, as well as discount or reduced-fee attorney services. Comprehensive legal insurance plans generally offer deeper coverage for legal services, ongoing access to attorneys at no additional cost and online tools and resources to help research their legal issues further.
Can I use a legal plan benefit for business or employer-related matters?
Legal insurance from ARAG is intended for personal legal matters and typically excludes business and employer-related issues.
Learn more about an ARAG legal insurance plan.
When a member needs help with a legal matter, we’re here to help – whether it’s a simple question or complex issue. They can start a case online or contact us directly by answering a few questions, then they receive a CaseAssist® confirmation. This contains complete coverage details, including what is paid by ARAG, along with contact information for network attorneys who can help.
1 ARAG Stress Research Study, October 2022.
2 Clio’s 2024 Legal Trends Report.