“I believe the recession has dramatically increased the need for legal services,” says Marcia Bowers, sales and marketing director for Hyatt Legal Plans (www.legalplans.com), a wholly owned subsidiary of MetLife, Inc. “We thought 2009 might be a bit of a tough year, but the economic downturn has fueled demand.”

Sales and requests for information about the company’s legal plans have increased. And, comparing the first quarter of 2008 and 2009, usage by employees is “very high,” especially for services related to bankruptcy, debt collection issues, home equity and real estate matters, preparation and review of mortgages, and property tax assessments, according to Bowers.

What Is a Group Legal Plan?

“A group legal plan is much like a group dental or group medical plan,” she explains. It is an employee benefit offered by an employer to employees. “Generally, it’s 100 percent employee-funded through payroll deductions; however, some employers pick up part or all of the tab.”

Employers usually offer a legal plan as a benefit to employees during open enrollment, and an average of 8 percent of eligible employees typically enroll, Bowers says.

Group legal plans provide employees with access to a network of attorneys, who provide legal advice for a variety of issues, such as financial and real estate matters, estate planning, civil lawsuits, traffic violations, adoption, preparation of mortgages and other legal documents, and elder law.

Why Should You Offer a Plan?

“Most people don’t have their own attorneys and when confronted with a legal issue, really don’t know where to turn,” Bowers says.

“Employees can become overwhelmingly frustrated and very worried about legal issues,” she says. For example, dealing with creditors who are demanding payment can be very stressful and can impact productivity at work, she explains.

A group legal plan gives employees access to attorneys who have been prequalified by the plan provider. This not only helps them avoid the hassle, and, potentially, the distraction, of searching for a qualified attorney on their own, it also demonstrates that the company cares about its employees, she says. Employees are likely to think, “Look at what my company is doing for me.”

“Group legal plans enhance the competitiveness of benefits packages and help recruit and retain talent,” she says. “It’s a terrific resource for employees, really doesn’t cost employers much, and is affordable to employees through payroll deduction.”

When selecting a provider, Bowers recommends looking at the vendor’s track record (e.g., level of expertise, length of time in business). In addition, she says employers should:

• Get three to five references from employers who offer the plan and ask about their enrollment and usage rates, what employees say about the plan, and whether the vendor provides good service.
• Make sure the plan includes a sufficient number of attorneys, so employees will have access to in-network attorneys in their area.
• Ask about the process for handling minor issues—as well as big ones—and what the vendor’s response time is.
• Check out plan design, coverage, and price.
• Look for a vendor that is willing to work with you to promote the plan to employees.