Pre-Paid Legal Services Inc. (NYSE symbol: PPD) is one of the first companies in the United States organized solely to design, underwrite and market legal plans. PPD covers many personal, non-work related legal issues. The plan provides an employee, their spouse and qualified dependents assistance with personal legal issues including:
· Unlimited telephone consultations
· Free phone calls or letters from attorneys
· A free Will
· Contract and document reviews
· Motor vehicle legal representation
· Lawsuit defense
· IRS tax audits, discounts on divorce and post divorce related matters
· Real estate transactions
· Identity theft protection and restoration plans
80% of Europeans have some form of legal insurance. The idea is favored by many people in situations where they need a lawyer and find the cost prohibitive. Legal insurance is comparable to medical insurance by people paying a monthly premium for access to legal representation when they need it. It also eliminates the stress of having to find someone in desperate times.
From a business point of view, a prepaid legal services plan is cost effective for small business owners who need collection letters. Since collection letters can cost upward of $150 a piece, the monthly premium is significantly less. A well-chosen prepaid legal services plan can benefit a consumer with a known legal need.
One clever use of a pre-paid plan was by a real estate agent. He found a plan that covered the preparation of a deed for a real estate transfer. He would have his clients sign up for the plan, and they would then obtain the deed through the plan's attorney. The cost of the plan was significantly less than the attorney would otherwise charge for the deed. On top of that, the real estate agent received a commission on each plan sold.
The clients typically cancelled the policies after the first year.
The product PPD offers that is important to business professionals is Identity Theft Shield. At no charge, PPD will send in an Identity Theft Expert to help create a plan to safeguard non-public information. PPD provides the training and necessary written policy, forms and documents that demonstrate Good Faith measures to comply with FACTA, GLB, HIPAA and other laws. The documents provide proof that handlers of sensitive information have attended the mandatory employee training now required by the Federal Trade Commission.
PPD's program is not bulletproof insurance against lawsuits, penalties, fines or damage awards, but provides evidence that companies are doing their best to protect the sensitive employee and customer data they have.
As an income opportunity based on the idea of an exponential expansion system, it has great emotional appeal to a growing number of people distressed in our economy. Multi-Level Marketing (MLM) or Network Marketing opportunities, such as PPD, Usana, Amway and Herbalife, appeal to a desperate need for new or additional income for millions of households. However, such systems promising financial salvation are not for everyone.
