As the need for affordable legal services becomes even more important in today’s world, it's common to opt for group legal insurance offered through your workplace benefits. These group insurance plans provide free legal assistance for a variety of needs from law firms that have contracted with the insurance company to provide the legal work.
While group legal insurance might seem like an easy option to save on your family’s legal needs, it’s often inadequate for creating the kind of estate plan you really need to protect your assets, your choices, and your loved ones. In fact - the type of estate plan, will, or trust created through legal insurance programs could leave your family with a big mess.
We’ll help you understand the potential pitfalls of using group legal insurance for estate planning and share suitable alternatives to ensure your assets are properly protected and that your loved ones are left with a legacy of love, and not a big mess.
One Size Doesn't Fit All
When it comes to estate planning, if you have people you love and assets you care about, there is no such thing as a one-size-fits-all plan that works for you and your family. In addition to the key documents in a standard estate plan–a will, trust, health care directive, and power of attorney–there are additional pieces of planning that are quite important for your family, depending on the specifics of your family dynamics and the nature of your assets, to ensure that your plan actually will work when your family needs it. Furthermore, the content of those standard documents must be specifically tailored to meet the unique needs of your family. Your financial, medical, and personal needs must be taken into account to craft a comprehensive plan that will serve you now and pass on your assets in the best way after you’re gone, all while ensuring the best use of your resources during your life.
Your group legal insurance plan may have the four key documents of an estate plan, but a generic set of planning documents is unlikely to work for you the way you want and will almost certainly guarantee your family will end up lost and confused when something happens to you, and your family needs the support of the plan you created to guide them.
The type of cookie-cutter estate plan you are likely to receive through your group legal insurance simply won’t include the kind of comprehensive considerations and counseling necessary to deliver a plan that will serve you and your loved ones in the way you would want while keeping your family out of court and conflict.
Legal Insurance Nickles and Dimes
Many group legal insurance plans boast free legal services after your deductible is paid, but what isn’t revealed is the limit of the coverage that’s covered for free.
Only certain types of legal services are covered under group legal insurance plans. Estate planning is frequently covered, but the kind of plan you will receive is a mere set of documents, similar to what you could create yourself online, and not a customized, well-counseled plan that will be sure to work when your family needs it.
Plus, some items that are essential to the creation of your plan, like notarization or fees to record documents with the state, are not included in the covered service and are instead charged to you as an extra expense.
More importantly, most legal insurance plans have limits to the amount of claims you can file for each type of service each year. For example, you may only be covered to create a Will once a year, but won’t be covered if you need to update your estate plan mid-year if circumstances change or someone dies. Estate planning isn’t something you do once, as your life will change, your assets will change, and the law will change. A legal insurance covered plan will not keep up with those changes, so you may receive documents, but those documents aren’t likely to be what your family needs when something happens to you.
Legal Insurance Plans Lack Long-Term Considerations
Estate Planning is a journey that spans a lifetime. As your finances, needs, and wishes evolve over time, your estate plan must adapt accordingly. Relying on group legal insurance won’t provide the ongoing support and guidance needed to address changing circumstances over the years.
Under group legal insurance, your choice of attorneys is limited to the firms that have contracts with the insurance company, and there is no guarantee that the attorney you worked with this year will be available to help with changes to your plan next year.
Your children will grow into adults. That means you’ll lose your ability to make decisions for them unless your young adult puts in place documents that allow you to act as their agent if they cannot handle their finances or make medical decisions. We will help you look at all of these considerations as part of our planning with you now and as they come up in the years that follow.
Time-sensitive changes to your plan that are needed as a result of a sudden emergency or death in the family may be impossible to carry out when using an attorney through group legal insurance. Instead, you want to work with an attorney who knows your family’s story and can pick up right where you left off, allowing them to quickly and effectively address any needed changes to your plan with just a phone call.
You Need a Heart-Centered, Counseling-Based Planning Approach
Creating an estate plan isn’t just about a Will or a Trust or passing on your money after you’ve died. It’s about making wise decisions about the use of your resources throughout your life, leaving your assets in a way that creates a legacy, not a mess, and creating the best reality possible for yourself and your loved ones.
To create a plan that will truly work for you and your family, your planning process needs to begin with an evaluation of your assets and family dynamics and needs to educate you about the application of the law to your specific situation. This is why we don’t have a one-size-fits-all solution, but instead begin our planning with you looking holistically at everything you have, everyone you love, and what you desire for the people you love.
Then, we review and consider all of your assets, including the intangible assets often left out of planning. Then, together, we create a truly personalized plan that takes into account every aspect of your family's well-being for the near and long-term
That’s why it’s crucial to coordinate your estate plan with the circumstances of your loved ones so that your wishes are honored and your assets are protected no matter how their situation changes over time.
In addition, our planning process includes creating an inventory of all of your assets and a review of your entire plan, including all of your decisions and your asset inventory for free every three years to make sure the plan we created for you will continue to serve you and your family in the way you intended. By doing this, we can identify any areas of your plan that need to be changed and any new assets that need to be coordinated into your plan.
Trusted Expertise in Estate Planning
While group legal insurance may seem like the ultimate way to protect your loved one’s future legal needs and your family’s wallet, sadly, the services available through these group insurance plans simply aren’t comprehensive enough to ensure you and your family get the support and guidance they need and deserve.
Instead, it’s crucial to work with an experienced estate planning attorney who gets to know your family on a personal level and can guide you every step of the way.
Your estate planning journey deserves personalized attention, compassionate understanding, and unwavering dedication. That’s why I have dedicated my practice to using a form of estate planning we call Life & Legacy Planning, allowing me to guide you skillfully through the decision-making process while looking ahead to proactively avoid issues in the future.
If you want to make sure your loved ones are always cared for no matter what the future holds, schedule a phone call with me and I’ll share all the details of our Life & Legacy Planning process.
Contact us today to get started.
This article is a service of Debbie Babb Law. We don’t just draft documents. We ensure you make informed and empowered decisions about life and death, for yourself and the people you love.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.