Small Business Group Legal Plans - Part I
Group legal plans in the workplace have experienced rapid growth recently because of their benefits to both employer and employee alike.
For the employee, a group legal plan is a cheap way to get legal coverage in much the same way as other traditional benefits. For as little as $20 per month deducted from payroll, an employee is put in touch with an attorney who can draft his will, buy or refinance a home, adopt a child and plan an estate. Unlimited legal advice is offered at no cost to the employee.
The benefits for the employer include increased efficiency and productivity from their workforce, and reduced administration costs to handle personal matters. Another very attractive benefit is the very low cost involved in researching and implementing a group legal plan. In fact, such plans cost employers very little in terms of time and investment. Group plans are structured on a voluntary basis, paid for through payroll deductions from the workforce. Additionally, the carrier handles all the claims, redundant paperwork and customer service related to the plan.
A properly developed group legal insurance plan can be the perfect complement to any employer’s work life initiative. Considering that many employees are nowadays increasingly swayed by benefit options when making career decisions, Legal insurance is a viable product for many employers.
However, there is no single fit-for-all group legal plan for all organizations. For a start, each organization has a distinct list of requirements when contracting for legal insurance. A requirement built on the premise of reduced administrative costs will require a different set of legal services than requirements built on enhancing a benefits package or protect against liability.
Legal plans also vary in what they offer: the quality of their customer service, flexibility of plan design and finally the experience and professional track record of their panel of attorneys. voluntary enrolment refers to a membership of a legal plan where people “voluntarily” subscribe to a pre-paid legal service in response to a direct email offer, during an employer’s open enrolment period or during individual sales representations. In this arrangement, you pay the prepaid charge, get the standard discounts open to all other members of the plan and get the coverage as per the terms and conditions of the plan.
In a group plan, all members are automatically included in the plan because of their status as a group. For instance, many employees enjoy a 100% participation in legal plans sponsored by their employers. They do not have to pay any pre-paid charge or premium, as legal coverage in the work place is now regarded as an employee fringe-benefit. Some universities also provide legal coverage for their students, financing the plans from their general tuition fees.
In order to minimize the risk of poor service and plummeting employer satisfaction, an employer should conduct both requirements analysis among its employee base to cover for their difference needs, and conduct research to select the most appropriate legal plan to fit those requirements based on experience, integrity and track record.
Continue reading…Part II