Are prepaid services ever worth the money?
Although not nearly as popular here as in the litigious United States, a few Canadian companies offer prepaid legal plans as an employee benefit.
Much like medical insurance, you pay a set amount each month and have access to the plan’s pool of lawyers. Members can prepare certain documents for you, such as draft a will, and you can have consultations (on the phone at least) a few times a year.
It's a hard-won perk for unions like the Canadian Auto Workers but is it worth the expense? Maybe, depending on your needs, but I’d prefer to go the 'a la carte' route, calling in the professionals when I need them and then taking my chances.
In fact, I’m hard pressed to come up with many services that I’d be willing to pay for before I really need them.
Prepaid credit cards and cell phones may help you control your spending but paying way up front for a cruise, for instance, doesn’t make much sense to me.
In fact, it can even backfire. Since high fuel prices sent airfares soaring, making a European cruise suddenly more expensive for North Americans, cruise lines have been forced to slash prices to fill those ships. Great for current shoppers but not for those who have already signed up.
Although she likes getting a jump on pest control each year, add prepaid funerals, tuition, and timeshares to that list, says blogger Miranda Marquit. Paying ahead of time for any of these seldom makes sense, she argues.
What's your take? Do you ever pay upfront to ensure that you'll be looked after when the time comes? How have things worked out?
By Gordon Powers, MSN Money
* Follow Gordon on Twitter here.
Posted by: Dave | Jun 24, 2021 7:52:41 AM
Yes pre-paid services are worth it in 2 situations:First if it is part of your lifestyle anyway. Just because a smooth-talking salesperson convinces you for a few minutes to get your vents cleaned or your carpets done twice a year doesn't mean you will do it. Prepay services that you have already found useful and prepaying saves you money. Second, write the service dates on your calendar and make the phone call! The service company hopes that you do not call them about killing weeds, central vacuum cleaner maintenance, or furnace check-up. The reason the price is lower is because 80% of buyers do not use the service more than once. Use it or lose the cash peeps! I love prepaid services! Cheers!
Posted by: Ann Cox | Jun 24, 2021 7:59:13 AM
Would you call a lawyer at $250 ++++ per hour to ask mundane questions like - how many days can I stay in the USA? I can't get then to honour this warranty - what do I do first? My tenant isn't paying what do I do? At& T is over charging me what do I do? What is in this article only scratches the the scratch of the surface. Does Oprah Winfrey have a battery of Lawyers waiting to answer her questions? Yes. If you would like more information on this subjest e-mail me. I purchased thise this product for peace of mind and the price of lawyers isn't going down. Ann
Posted by: Chip | Jun 24, 2021 2:26:26 PM
Makes sense to prepay for something you will DEFINITELY use. I disagree that funeral services (according to Miranda Marquit) are not part of this... unless Miranda thinks she'll live forever. Funeral costs... like everything else... will go up. Therefore, you can prepay those costs over a 2-3 year period, let's say for 5-8K. So when you die... and you wil... you'll be covered, even it it costs you 15-20K by the time you croak. That's money saved !! More $$$ for your beneficiaries and less heartache and trouble when the time does come around. You may also want to buy (prepay) for a funeral plot and headstone... even get the personal info on it, with the exception of the Date of Death of course.
Posted by: Jack | Jun 26, 2021 12:23:12 PM
I would never prepay for anything. I only pay for what I need, when I need it.