How can brokers help clients prepare for the impact of legal life events?

How can brokers help clients prepare for the impact of legal life events? | Insurance Business Canada

Insurance News

How can brokers help clients prepare for the impact of legal life events?

Expert discusses urgency of legal expense coverage

Insurance News

By
Mika Pangilinan

Recent statistics from ARAG have offered insight into how unforeseen legal life events impact Canadians.

According to the legal expense insurance (LEI) specialist, 55% of individuals embroiled in legal disputes found themselves burdened with expenses ranging from $1,000 to $9,999, while 20% grappled with costs surpassing $10,000.

Additionally, 55% of those surveyed said that dealing with a legal dispute had a large to moderate impact on their day-to-day job performance. In comparison, 12% said they lost their job as a result of having to handle legal entanglements.

Furthermore, 71% said handling legal issues took a toll on their and their families’ mental well-being, manifesting as heightened stress, anxiety, and sleep disturbances.

“As a broker or as an insurer, your customers are having to make a commitment in terms of time and effort to handle the legal dispute and also undertake what could be tense and stressful negotiations,” he said. “And even after all that, they may not be satisfied with the situation. And at that point, they’re faced with the challenge of a complex, time-consuming legal system that is not designed for a do-it-yourself approach.”

Kless, who serves as VP of marketing and strategic initiatives, also offered insights on how brokers can initiate conversations with clients about the importance of legal expense coverage.

Exploring scenarios like job loss and contractual disputes can help clients understand the potential risks they face, according to Kless. Brokers can also highlight the affordability and comprehensive coverage provided by legal expenses insurance.

“What we hear from our brokerage is to start that legally rich discussion; it’s best just to ask questions,” he said.