The difference between legal aid and legal insurance may not be immediately clear.

Life is unpredictable, and that is why you always need to be prepared. You may think that you will never need legal representation, but it helps to know what options are available to you.

Legal Aid is free, according to Nicola de Ruiter, an attorney at Nicola de Ruiter Attorneys.

Several organisations in South Africa offer free legal services to people who cannot afford a lawyer. These organisations include Legal Aid South Africa, ProBono.org, and a variety of university law clinics.

To qualify for legal aid, you need to complete a “means test” – which will set out your income and expenses – to prove that you are unable to pay. There are different means tests, says De Ruiter.

According to Legal Aid, if you are employed you must earn less than R5,500 per month after tax deductions and your household total income must be less than R6,000.

If you own a house, the total value of your assets must not be more than R500,000 and if you don’t, it must not be more than R100,000.

“If you earn more than the threshold amount for legal aid, you don’t qualify and should rather consider legal insurance,” says De Ruiter.

Legal aid is usually funded by government and can sometimes be inaccessible due to a long queue of other applicants looking for representation. If you have an urgent situation, legal aid may not be your best option.

What is legal insurance?

Legal Insurance is a product that you pay for each month, so that one day if you need a lawyer – for example for a dispute at work – you can access one without paying upfront fees.

With legal insurance, your insurer will send you a lawyer to represent you in court. If you prefer your own lawyer, you might be liable for the fees incurred.

Anyone can take out legal insurance as long they can afford the premiums. Legal insurance fees can be as low as R20 per month.

There are a number of different companies that provide legal insurance in South Africa. These include Legal Wise and Scorpion Legal.

It’s always important to speak to a legal expert when choosing legal insurance that best suits your needs.

This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.