Is ARAG Legal Insurance Worth It? Evaluating the Pros and Cons

Dealing with legal issues can be stressful and expensive. An option that more people are considering to offset the costs of legal services is legal insurance plans like those offered by ARAG.

But is ARAG legal insurance really worth it? In this comprehensive guide, we’ll look at the pros and cons of ARAG legal insurance to help you decide if it’s a worthwhile investment.

What is ARAG Legal Insurance?

ARAG legal insurance provides policyholders with access to legal advice and representation for a wide variety of personal and family legal matters. Some key details about ARAG plans:

• Sold primarily as an employee benefit offered through employers
• Over 15,000 companies offer ARAG legal plans to employees
• Covers common legal needs like wills, traffic violations, identity theft, contracts
• Network of over 14,000 attorneys across the U.S.
• Low monthly premiums (around $10-20 per month)
• Various plan options – UltimateAdvisor, CoreAdvocate, etc.

With ARAG insurance, members get legal advice and representation fully paid for (with limits). There are no deductibles or copays for covered services.

The Potential Pros of ARAG Legal Insurance

Here are some of the main benefits that ARAG legal insurance offers policyholders:

Saves money on legal fees – Attorney hourly rates often exceed $200/hour. ARAG plans cover 100% of costs for many legal services with in-network lawyers. This can mean huge savings compared to paying out of pocket.

Provides access to legal advice – Even for issues not fully covered, ARAG plans provide some level of legal advice and consultation. Members can get expert guidance on how to approach a variety of problems.

Covers common legal needs – Many routine legal issues like wills, traffic tickets, credit report disputes, and debt collection defense are fully covered under ARAG plans. This is where members frequently utilize their benefits.

In-network attorneys nationwide – With a network of over 14,000 lawyers, ARAG makes it easy to find an experienced local attorney. Vetted lawyers help ensure quality representation.

Convenience – ARAG handles finding a lawyer, scheduling appointments, and managing payments to streamline the process for members.

Peace of mind – Knowing you have a resource to navigate the legal system reduces stress and uncertainty when legal situations arise.

Bundled with other benefits – ARAG is frequently offered by employers along with other voluntary benefits like dental insurance at a discounted rate.

For many who utilize their benefits, ARAG legal insurance provides good value by covering the bulk of costs for common legal needs.

The Potential Cons of ARAG Legal Insurance

Of course, no insurance policy is perfect. There are some potential drawbacks to consider with ARAG legal plans:

Limited family coverage – Many ARAG plans only cover employees plus a spouse and dependents. Other family members may not qualify for coverage.

Exclusions – Certain types of more complex legal situations like patents, class actions, and some disputes with insurance companies are not covered under ARAG plans.

Caps on coverage – There are coverage limits on the number of hours and services provided. Members may exceed caps if a case is particularly lengthy or complex.

In-network lawyers only – To receive full coverage benefits, members must use ARAG’s network of attorneys. Those wanting to use their own lawyer may receive reduced benefits.

Premium costs add up – If an employee pays part or all of the premium, costs can start to increase over time as premiums rise.

May not need coverage – Some people go years without a major legal issue, so they could pay for unused coverage. However, legal needs tend to increase with age.

Employer-dependent – Coverage ends if you leave your job, unless you can convert to an individual policy.

While ARAG insurance has advantages, there are limitations in coverage to be aware of. It works best for more routine legal matters.

Is ARAG Legal Insurance Worth It for You? Key Factors to Consider

When deciding if ARAG legal protection makes sense for your situation, here are some important things to think through:

• Premium cost – Consider what premium amount seems reasonable based on your income and budget. Higher earners may find premium costs negligible.

• Likelihood of legal issues – If you anticipate major legal needs down the road like estate planning or business contracts, the coverage will provide more value.

• Exclusions – Review ARAG plan documents closely to see what specific services are excluded or limited in coverage.

• In-network attorneys – Verify there are quality ARAG lawyers conveniently located near where you live and work.

• Alternatives – Compare plans from other legal insurance providers and see if they better fit your needs and budget.

• Combining with other benefits – Look at what other voluntary benefits are offered and see if a bundle makes the premium more worthwhile.

For those who carefully evaluate their personal situation, ARAG can provide substantial savings and peace of mind. But it may not be cost-effective depending on your circumstances.

The Bottom Line – Is ARAG Legal Insurance Worth It?

For many policyholders who take advantage of covered services, ARAG legal insurance provides good value and savings on legal costs.

But due to exclusions and coverage limits, ARAG works best for more common legal matters. Individuals should carefully review their plan documents to know what is and isn’t covered before enrollment.

Ultimately there is no one-size-fits-all answer on the worthiness of ARAG legal insurance. It comes down to your specific legal needs, risk factors, premium costs, and personal finances. With smart evaluation of your individual situation, you can make an informed decision on if ARAG protection is a wise investment for you.