Legal insurance can be a valuable resource for individuals seeking financial protection and assistance in legal matters. It offers coverage for various legal expenses, such as attorney fees, court costs, and other legal services.
1. What are waiting periods?
Waiting periods are in place to prevent the misuse of legal insurance policies. Consider this scenario: an individual anticipates a forthcoming legal matter and signs up for legal insurance with the expectation that it will cover their attorney fees. However, this would immediately impose significant costs on the insurance provider. Hence, waiting periods are implemented, ensuring that the policy extends coverage only to unforeseen legal issues arising in the future after these waiting periods have elapsed.
2. What are the waiting periods?
Waiting periods vary depending on the specific legal insurance plan and the nature of your legal issue. Please refer the chart below for a general overview.
| Basic | Advanced |
Personal |
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Contract | 6 months | No waiting period |
Social law | No waiting period | No waiting period |
Administrative law | 6 months | 3 months |
Family, civil partnership, and inheritance law | 1 year | 1 year |
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Professional |
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Professional law | 6 months | 3 months |
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Traffic |
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Contract, administration, and traffic offenses | No waiting period | No waiting period |
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Home |
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Contract and property law | 6 months | 3 months |
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Criminal | No waiting period | No waiting period |
3. Can I wait till the waiting period is over to retroactively make a claim?
No, the insurance must be obtained prior to encountering a problem. It does not provide coverage for incidents that occurred before the insurance was acquired or during the waiting period.
Even without a waiting period, your insurance won't cover pre-existing issues. Legal insurance must be obtained before it's needed. For instance, if you've already wrecked your car, it's too late to purchase car insurance to cover the damages. The same principle applies to legal insurance. You cannot signup for legal insurance after receiving a termination notice from your employer and then attempt to make a claim to cover any legal fees.