4 minute read
Unlocking the Potential of Legal Plans: Navigating Demographic Influences for Tailored Plans
By John Allen, EOI Service Company
Legal plans, often referred to as legal insurance or prepaid legal services, present an invaluable opportunity for employees to access legal services at a fraction of traditional legal costs. Covering a spectrum of legal issues from consultations to document preparation and representation these plans are gaining prominence in the voluntary benefits landscape. Understanding the demographic buying patterns of legal plans is crucial when tailoring plans and price points.
Industry Landscape Insights
According to Eastbridge Consulting Group’s (Eastbridge) Large Case Market Report, the percentage of companies offering legal Insurance ranges from 38% - 44%, with the highest rate found in cases with 10,000 or more employees. Eastbridge’s report also shows legal insurance as one of the most commonly offered nontraditional voluntary benefits.
Demographic Dynamics in Decision-Making
Age and Life Stage Dynamics
Age plays a significant role in the decision to purchase legal plans. Younger individuals, particularly those in their late teens to early thirties, often prioritize basic legal needs, such as rental agreements, employment contracts, or small claims issues. As people age and enter different life stages, such as marriage, home ownership, or starting a family, their legal needs become more complex. Consequently, they may seek legal plans that offer more comprehensive coverage to address their evolving legal needs.
Income Levels and Socioeconomic Status
Income levels and socioeconomic status strongly influence the decision to purchase legal plans. Higher income individuals and families may opt for legal plans as a proactive approach to protect their wealth and assets. In contrast, middle and lower-income groups may prioritize legal plans to mitigate the financial burden associated with unexpected legal challenges. Offering flexible pricing options and payment plans can attract a broader range of customers 36-44% the percentage of companies offering legal Insurance (Eastbridge).
Marital Status and Family Composition
Marital status and family composition also impacts the decision to purchase legal plans. Married couples and parents often have more comprehensive legal needs, including estate planning, child custody, and divorce proceedings. Therefore, legal plans that address family-related legal concerns may be particularly appealing to this demographic.
Geographic Location
Geographic location can influence the decision to purchase legal plans due to varying legal regulations. In regions with complex legal systems or a higher frequency of legal disputes, individuals may be more inclined to invest in legal plans to ensure they have accessible legal support when needed.
Educational Background and Awareness
Education and awareness about legal matters significantly impact the likelihood of purchasing legal plans Individuals with a higher level of education may have a better understanding of legal complexities and the potential benefits of having legal coverage. Educating employees about the advantages of legal plans can be a key strategy in increasing overall plan participation.
Ethnicity and Cultural Influences
Ethnicity and cultural factors can also influence purchasing decisions regarding legal plans. Different cultural backgrounds may prioritize certain legal aspects, such as immigration issues, family law matters, or civil rights. Tailoring legal plans to align with the unique legal concerns of specific ethnic or cultural group scan be effective.
In Conclusion
Understanding the demographic buying patterns of legal plans is crucial when designing customized plans that meet the diverse needs of each client’s unique demographical makeup. By considering factors such as age, income levels, occupation, marital status, geographic location, educational background, and cultural influences, communication and educational support can be customized to ensure employees understand the benefits based on their particular needs.
John Allen is President of EOI where he executes and develops strategic marketing initiatives on a national level, specifically focusing on the enhancement of value-added services that EOI provides for its clients. Since joining EOI in 2009, John has played a key role in the area of strategic marketing, building an outstanding implementation team in the Chicago office and tripling sales in the Midwest region.
