Addressing Uncertainty with Legal Expense Insurance

Uncertainty was the hallmark of 2020 as the we trudged through a global pandemic, economic setbacks, and a series of natural disasters. And though we in Australia have fared better than much if the globe we continue to working through these challenges in 2021.

At its core, legal insurance helps provide peace of mind by covering some of the uncertainties in life - uncertainties that have grown exponentially in the past year and will likely continue in the months ahead. The need for legal protection is ubiquitous across all life stages - for the great moments, like buying a home or investment property, and to help with life’s challenges.

Brokers should consider how adding legal insurance cover into their client’s risk management can help their clients potentially respond to some of the issues from 2020 that will be part of our ‘new normal’ in the years ahead.

ADDRESSING FINANCIAL STRESSORS

The economic toll of the coronavirus, while showing some signs of diminishing, has been considerable for many businesses and individuals alike. For a business or individual that was already under financial pressure pre-COVID-19, the pandemic - and resulting shutdowns - exacerbated those money concerns.

Financial matters continue to be the top cause of anxiety - more than other stressors combined, according to the PwC 2020 Employee Financial Wellness survey. Contributing to that unease is the fact that nearly 40% of full-time employed millennials, GenXers, and Baby Boomers, have less than A$1,300 saved to deal with unexpected expenses.

In addition to increased stress, this may trigger greater delinquencies, financial hardship, and even bankruptcy. This leaves businesses open for the need to understand their rights in terms of being a debtor or debtee. it also creates stress and challenges within the workplace environment potentially raising unprecedented employment matters. For those dealing with legal issues, it’s critical to have access to legal counsel to understand the options as well as the short- and long-term implications of each.

We offer services that can sometimes mitigate any action being taken under a claim. Before doing anything, you can contact our Legal Helpline where you can have a discussion with an experienced lawyer. That conversation may save you from making some expensive mistakes.

- Natasha Gale, General Manager, ARAG Services Australia

Depending on the product, ARAG coverage provides access to a network lawyers who practice in dozens of areas of law —through our helpline and claims team. Considering that the average hourly rate for a senior lawyer in Australia can span up in excess of $400 per hour, a legal insurance plan can save members thousands in legal fees on covered matters. Given the reported lack of funds to cover the unexpected, this can be a game-changer for many families.

In addition, members can take advantage of a wide range of tools and online resources, like template documents, and various guides. Our ARAG Data has shown that wills, creation of healthcare power of attorney, and elder care arrangements have all nearly doubled in 2020 vs 2019. This is as growing concerns about health and finances have prompted many to get their houses in order, particularly when it comes to estate planning.

As you can see Legal Expense Insurance provides brokers an innovative offering to clients as another element of protection that will give them more piece of mind. ARAG’s offering addresses client needs for personal and business alike with products including Business, Personal, Landlord and Web.

ARAG Services Australia Pty Ltd (ARAG) has been operating since 2019. Legal Expense Insurance (LEI) cover is for the Pursuit and Defence of legal matters for Business, Sole traders, Landlords, Individuals and Families, offering a range of products that can support existing Risk Management Programs. Our legal expense insurance policies can be tailored and, provide cover for a range of common legal concerns such as, Employment, Tenancy, Compliance and Regulation, and Criminal Prosecution & WH&S defence.