Pre paid legal is a service which anyone can join for a monthly fee. It is sold as a service like medical insurance where people pay a monthly fee and they can use the service only when they need to.

The idea sounds good, but due to legal limitations, pre-paid legal not actually call its product "legal insurance" in most states in the United States. Rather than insurance it calls itself a membership program.

If sign up with the service you submit questions and a lawyer will call you back to answer your question and give advice. They can also write letters on your behalf, but anything beyond that you will need to pay more, like if you need to be represented in court.

Prepaid legal also operates as an multi-level marketing scheme, which only adds to people's skepticism of the service. Unfortunately, some people who promote the product aren't exactly truthful about the product, just to get people to sign up with the service. There is a joining fee of around a couple hundred dollars and like any MLM or money making scheme, people get all excited about passive income streams in the beginning, and then eventually get disappointed when they realize it takes a lot of time and effort to make money with the scheme, even if it is to recover their initial investment.

If you are interested in getting a pre-paid legal, you should take a deep look into what services are provided for free in your membership. You need to ask yourself if you will actually use or even need these services.

One of the selling points is how much you can save if the prepaid legal look over your loan and and mortgage contracts. Is this something you will actually need on a monthly basis? The same goes with drawing up wills. Unless you are getting married every month, is this something you will be updating on a regular basis?

Another problem is that some people who sign up with service think that is like medical insurance and when they have a big problem, like if they are sued, they think their prepaid membership will cover them. The fact is they only get a discount from already expensive rates from the prepaid membership team of lawyers.

Lawyers probably only join the prepaid legal service so they can get new clients. Most lawyers will give an initial free consultation, so you have to ask yourself is the service really worth the money.

I could see the service might be useful for small business owners or property managers who might need regular legal advice and cannot afford to retain a lawyer, but anyone who is thinking of joining the program really needs to know how they plan to use the service to get their money's worth.