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May 18, 2006 -- The skinny on Pre-Paid Legal

For as many years as Clark can count, people have been calling the show to ask about pre-paid legal services and whether they are worth it. The most well known is “Pre-Paid Legal.” Barron’s did a story on this company recently and discussed the many pitfalls of getting involved. The article said the company is basically a multi-level marketing company and its numbers are growing. But what else do you need to know about the company? Well, you pay a monthly fee and you have access to an attorney for 60 hours of tiral defense work. That means time in the courtroom, so people only get about two hours of prep time outside the courtroom. Any attorney knows that most of the time is spent preparing for time in the courtroom. So, how do people feel about the company? Well, membership in the organization has continued to grow, but about 50 percent of the customers drop out after one year. After two years, two thirds are gone. On the other hand, competitor MetLife keeps 99 percent of its clients. If you’re considering being a customer, that should be clear enough. If you’re considering a sales position, only two percent of sales reps sold more than 10 memberships to the company. So the sales success rate is pretty low.

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What others are saying

  • PPL IS GREAT and you just do not know the truth
    The truth about Prepaid Legal is not known or being told. The business opportunity is just that a business. If you have a employee state of mind and need to be told what to do, this business is not for you. It is not a get rich quick scheme and/or a pyramid scheme either. The business is legitimate and has outstanding credibility from several 3rd party sources. Several states require a license from the state to market the services and some even mandate passing a test before licenses can even be issued. Prepaid Legal is experiencing record growth in both memberships and business associates and will only continue to increase. The reason so many memberships cancel is because the member fails to appreciate or fully understand the value of the membership benefits or gets wrapped around the axle about the 25% discount for some services. The coverage is much like a co-pay insurance for your health in the fact that some services are not covered completely by the co-pay and require more money for the procedures. Can you imagine having to require surgery and have a $20 co-pay for the operation? This would be absurd to consider and scary for the patient to experience. Some things require more time, thought, planning and so the higher fees are reasonable. The truth is people want something for nothing and fail to value the services of PPL for what is covered. A complete will with power of attorney valued at $500 is included with the membership. Unlimited phone consultation, letters or phone calls by an attorney, and contract or documents reviewed before signed is also included. Do yourself a favor and call any attorney in your local phonebook and simply ask them what they will charge for these services on an unlimited basis....I am sure it will be more than the $26 a month or less for a PPL membership. This is only the first area of coverage. Motor vehicle, trial defense, IRS audit protection, and true identity theft protection with restoration is all included in the fees.
  • My experience
    It is a great product. Everyone needs Idenity Theft protection.
  • Pre-Paid Legal
    It may be time to revisit this topic. I see it seemed this topic came up near the later part of last year.

    Pre-Paid Legal Services continues discredit claims and defend itself quite adequately.

    In fact, with all of the turmoil on Wall Street, Pre-Paid Legal Services has also out-performed its competitors and shown momentum in the last 30-days.

    As Government Tax revenues decrease, the number of people being audited is going up about 20 percent each year and businesses having to be more responsive to collections issues, Pre-Paid Legal Services seem to make more sense to both individuals and businesses than ever before.

    With out even mentioning Personal Information Protection Compliance issues for businesses and personal identity theft, Pre-Paid Legal Services should be given legitimate consideration.
  • Prepaid Legal
    What company would be the best for prepaid legal services. Great show.

    Thanks

    Frank
  • PPL
    Just started with the company and will sell more than the "10" "most" reps have sold. 90% of the population is lazy and if not for the threat of being fired, wouldnt show up for work. The 10% that would is the ones that will sell more than 10 plans. So if you are lazy this jobs not for you.
  • PPL
    Clark Needs to completly investigate before running a Company into the ground.If you do not know the facts keep your mouth shut!
  • PPL
    Before posting your comments about a company on the internet, you should have all your information correct. You are miss leading people. If people want to know exactly what the plan covers they should check with an expert from the company. Why would the US Chamber of Commerce President endorse a company if they were as bad as you say they are.
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