Legal issues can be stressful, but the financial side often makes things worse. Hiring a lawyer the traditional way can cost $250–$500 per hour — making even a short consultation unaffordable for many families and small business owners.
This is why prepaid legal plans are gaining popularity in 2025. For a low monthly fee, members can access attorneys for everyday issues like contracts, wills, traffic tickets, and more. But does that mean prepaid legal plans always save more money compared to hiring a lawyer the traditional way?
Let’s break it down.
—
The Cost of Hiring a Lawyer
Traditional lawyers charge by the hour. Here’s what that looks like in real life:
Initial Consultation: $150–$250 for a one-hour meeting
Document Review (contracts, leases, agreements): $300–$600
Traffic Ticket Defense: $500–$1,000+
Will Preparation: $800–$1,200
Litigation or Disputes: $5,000–$10,000+ depending on case length
These costs are unpredictable, and they add up quickly. Even if you only need an attorney a few times per year, you could easily spend several thousand dollars.
—
The Cost of Prepaid Legal Plans
In contrast, prepaid legal plans like LegalShield work on a subscription model:
Family Plans: around $29.95/month (less than $1/day)
Small Business Plans: starting at $49/month
IDShield (identity theft protection): $14.95–$34.95/month
That means for less than the cost of a single consultation, you can have year-round access to attorneys.
—
Prepaid Legal Plans vs Hiring a Lawyer: Side-by-Side Comparison
Legal Service Hiring a Lawyer (Hourly) Prepaid Legal Plan (Flat Monthly)
Consultation/Advice $150–$250 per hour Included, unlimited calls
Contract/Document Review $300–$600 Included
Will Preparation $800–$1,200 Included
Traffic Ticket Defense $500–$1,000+ Included in most plans
Letters/Phone Calls $150–$300 per letter Included
Trial Defense $200–$400/hour Hours included, increase annually
Prepaid legal plans provide massive savings for everyday needs. Hiring a lawyer is only cost-effective if you have one very specific issue and never expect to need legal help again.
—
Examples
Example 1: The Family Lease Dispute
A family signs a rental lease with hidden fees. Hiring a lawyer to review or send a letter would cost $400+. With a prepaid legal plan, it’s included at no extra cost.
Example 2: The Traffic Ticket
A young driver gets a speeding ticket. Hiring a lawyer = $750. Prepaid plan = covered.
Example 3: The Will
A couple wants to create wills. Hiring a lawyer = $1,200. Prepaid plan = included with membership.
In each case, the prepaid plan saves hundreds — sometimes thousands.
—
Who Should Consider Prepaid Legal Plans?
Families: Parents dealing with contracts, landlords, school issues, or estate planning.
Small Business Owners: Entrepreneurs who constantly deal with contracts, employees, or compliance.
Individuals on a Budget: Anyone who wants affordable legal advice without worrying about the bill.
—
Who Might Still Hire a Traditional Lawyer?
While prepaid legal plans cover most everyday needs, there are times you may still need to hire a lawyer:
Divorce or child custody cases
Criminal defense for serious charges
High-value lawsuits or complex litigation
In these cases, prepaid legal plans can still help by offering discounted rates through their network of attorneys.
—
FAQs: Prepaid Legal Plans vs Hiring a Lawyer
Q: Are prepaid legal plans legit?
A: Yes, LegalShield has been around for over 50 years with 4 million+ members. Plans are backed by real law firms across the U.S. and Canada.
Q: Are prepaid legal plans tax deductible for businesses?
A: In many cases, yes. Business owners can deduct legal expenses (consult your accountant).
Q: Can I still choose my own lawyer?
A: Prepaid plans connect you to network attorneys, but you can still hire your own lawyer outside the plan if you prefer.
Q: What happens if I need something not covered?
A: Members receive a discount (often 25%) on services outside standard coverage.
—
Which Saves More Money?
For families and small businesses, prepaid legal plans almost always save more money than hiring a lawyer by the hour. They offer predictability, affordability, and peace of mind for everyday issues.
Hiring a traditional lawyer still makes sense for rare, complex, or highly specialized cases. But for 90% of legal needs, prepaid legal plans like LegalShield are the clear winner.
