Employees are seeking legal services more than ever. Here’s what employers should know.
The unpredictability of the past year has prompted many Americans to take stock of their assets and better prepare for the unexpected.
Roughly half of all Americans find themselves confronting a legal issue each year. Against the backdrop of the pandemic, this number is only expected to increase as many navigate new legal hurdles for the first time – from terminating a lease agreement to purchasing a new home or filing for bankruptcy. These issues are not only stressful and time-consuming but also incredibly costly; just consider that the typical rate for one hour of legal services is around $370. For employees who aren’t prepared, sudden legal issues can prove detrimental to their financial health – not to mention their mental well-being.
Related: COVID-19-related financial stress is hurting employee health and well-being
Thankfully, employers can support employees facing the unexpected by offering a legal plan. This benefit not only covers the costs of an array of services on some of today’s most frequently needed legal matters, but also may improve employees’ overall well-being and performance at work. In fact, MetLife’s 2020 Employee Benefits Trends Study (EBTS) found that employees who feel their employer is offering benefits that help support their well-being are significantly more likely to be productive and engaged at work than those who don’t (87% vs. 74%, and 81% vs. 67%, respectively).
With this in mind, here are three of the most common legal concerns that employees are facing this year, and how employer-offered legal plans may be able to help:
1. Estate planning
The unpredictability of the past year has prompted many Americans to take stock of their assets and better prepare for the unexpected. As a result, many employees have started thinking more seriously about estate planning to help them take control of their health care wishes and finances, as well as their family’s future.
In fact, some law firms have reported a 25% to 30% increase in estate planning since the start of the pandemic. Amid this heightened interest, it can be smart for employers to offer resources, like legal benefits, that cover the services of experienced attorneys who can, for instance, help them navigate the nuanced rules of their state while drafting their will. When employees feel confident that their estate is prepped correctly, they can take comfort in knowing that they have done their part to ensure their wishes are carried out and their family is provided for– no matter what comes their way.
2. Housing agreements
Whether they are purchasing a home for the first time or navigating how to terminate a lease, many Americans have been traversing changes to their living situations since the beginning of the pandemic. Just consider that around one in five U.S. adults has moved due to COVID-19 related circumstances, or know someone who has.
Employer-offered legal services can take some of the headache out of the moving process by helping employees deal with complicated contracts and last-minute changes that make the process more costly and confusing. Likewise, some legal plans also cover landlord-tenant disputes, helping employees access lawyers who can negotiate on their behalf to terminate, contest, or amend a lease agreement.
3. Identity theft
In 2019, more than 3 million identity theft and fraud reports were filed with law enforcement and private organizations. Now, as our world becomes increasingly digital amid the pandemic, that number could be on the rise; with many businesses remaining closed or restricted, consumers’ online spending habits have surged, leaving them vulnerable to internet scams and identity theft. In fact, one survey of Certified Fraud Examiners (CFEs) found that 73% observed an increase in identity theft and 80% expect even more cases in the coming year.
While dealing with identity theft may be frightening at first, having access to a lawyer through a legal plan can help employees confidently navigate communicating with debt collectors and credit bureaus. Though cases of fraud may be unpredictable, it’s always better for employees to be prepared – potentially saving them time, money and stress down the road.
Amid the myriad of life changes that Americans are experiencing this year, it’s no surprise that employees’ demand for legal assistance is on the rise. With this in mind, particularly as one in three employees cite personal finances as a top source of stress, it’s important that employers arm their workers with the necessary legal tools to protect themselves and their families. Saving employees from having to endure lengthy, complex legal issues on their own, employers can help employees return to work feeling less stressed and more focused – boosting both their wellness and employers’ bottom line.
Ingrid Tolentino is CEO of MetLife Legal Plans.
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