UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 8-K

                             CURRENT REPORT PURSUANT
                          TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


Date of report (Date of earliest event reported):  February 20, 2006
                                                 -------------------------------


                          Pre-Paid Legal Services, Inc.
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             (Exact Name of Registrant as Specified in Its Charter)


                                    Oklahoma
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                 (State or Other Jurisdiction of Incorporation)


              001-09293                        73-1016728
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      (Commission File Number)        (IRS Employer Identification No.)


                   One Pre-Paid Way
                       Ada, OK                                   74820
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       (Address of Principal Executive Offices)                (Zip Code)


                                  (580)436-1234
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              (Registrant's Telephone Number, Including Area Code)


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          (Former Name or Former Address, if Changed Since Last Report)


     Check the  appropriate  box below if the Form 8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

     |_| Written  communications  pursuant to Rule 425 under the  Securities Act
(17 CFR 230.425)

     |_| Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)

     |_|  Pre-commencement  communications  pursuant to Rule 14d-2(b)  under the
Exchange Act (17 CFR 240.14d-2(b))

     |_|  Pre-commencement  communications  pursuant to Rule 13e-4(c)  under the
Exchange Act (17 CFR 240.13e-4(c))





Item 2.02 Results of Operations and Financial Condition
-------------------------------------------------------

     On February 20, 2006, Pre-Paid Legal Services,  Inc. (the "Company") issued
a press  release  announcing  its earnings and  operating  results for the three
months and year ended December 31, 2005. A copy of the release is included as an
exhibit to this report.


Item 9.01 Financial Statements and Exhibits
-------------------------------------------

     The following exhibits are included with this report:

   Exhibit No.                              Description
   -----------                              -----------

       99.1         Company Press Release dated February 20, 2006


                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                          Pre-Paid Legal Services, Inc.


                                          By:/s/ Randy Harp
                                             -----------------------------------
                                             Randy Harp, Chief Operating Officer

Date:  February 20, 2006

For Immediate Release                          Company      Steve Williamson
Monday, February 20, 2006                      Contact:        (580) 436-1234

                 Pre-Paid Legal Announces 2005 Year End Results
                                      -- -- --
             13th Consecutive Year of Increased Membership Revenues
                                      -- -- --
   Fourth Quarter Membership Revenues Up 10%; Net Income Up 8% and EPS Up 11%

ADA, OK, February 20, 2006 - Pre-Paid Legal Services, Inc. (NYSE:PPD), announced
results for the fourth  quarter and year ended December 31, 2005. Net income for
the fourth  quarter of 2005 increased 8% to $11.4 million from $10.5 million for
the prior year's fourth quarter.  Diluted earnings per share increased 11% to 73
cents per share from 66 cents per share for the prior year's comparable  quarter
due to an increase in net income of 8% and a 1% decrease in the weighted average
outstanding shares.  Membership revenues in the fourth quarter of 2005 increased
10% to $100.6 million from $91.3 million for the same period last year.

Net income for the full year of 2005  decreased  12% to $35.8 million from $40.8
million for 2004.  Diluted earnings per share for 2005 decreased 8% to $2.29 per
share from $2.48 per share for the prior year due to decreased net income of 12%
partially offset by an approximate 5% decrease in the weighted average number of
outstanding  shares.  Membership revenues for 2005 were up 10% to $389.3 million
from $355.5 million for the prior year marking the thirteenth  consecutive  year
of increased membership revenue.

During 2005 we had  meaningful  increases in new  membership  sales and "add-on"
Identity  Theft sales  resulting  in a 19% increase in new  membership  premiums
written.  Due to this growth,  we paid $142 million of  commissions to our sales
associates, a $23 million dollar increase (19%) over 2004. We expense commission
advances in the first month.  Increased  sales thus reduce current  earnings but
increase  future  earnings as the revenues  are earned and recorded  without the
corresponding  commissions.  This reporting model  typically  results in our net
cash provided by operating  activities  exceeding  our net income,  as it did in
each of the periods reflected below.

Net cash provided from  operating  activities  increased 6% to $50.1 million for
2005 from  $47.3  million  for  2004,  although  cash  provided  from  operating
activities  before  changes in assets  and  liabilities  decreased  12% to $45.4
million for 2005 from $51.7 million for 2004. During 2005 we repurchased 336,100
shares of our stock for $11.7 million at an average share price of $34.73.  From
April 1999 to year-end 2005, we invested $222.5 million in the repurchase of 9.4
million  shares at an average price of $23.64 per share,  reducing the number of
shares  outstanding  at year-end 2005 to 15.5 million.  At December 31, 2005, we
had  $38.5  million  of debt  outstanding  and  $59.9  million  in cash and cash
equivalents and unpledged investments.

Fourth quarter 2005 membership fees and associate services revenues increased 2%
and 1%,  respectively  vs. the third  quarter of 2005.  Associate  services  and
direct marketing expenses decreased  approximately 26%. Membership benefits were
36% and 35%, respectively of membership fees in both periods.  Commissions, as a
percent of membership  fees,  were 34% in the 2005 fourth quarter vs. 38% in the
third  quarter due to a 14% decline in new legal  service  membership  sales and
"add-on"   Identity  Theft  sales   partially   offset  by  a  10%  increase  in
"stand-alone" Identity Theft sales. General and administrative expenses were 13%
vs. 12% of membership fees in the fourth and third quarters, respectively.

We will resume our open  market  repurchase  program  later this week as we have
remaining  authorization from the Board to purchase an additional 586,082 shares
and $20 million availability under existing bank covenant restrictions.

We will conduct a conference  call to present the year end results on Wednesday,
February 22, 2006 at 8:30 a.m.  Eastern Time.  The  conference  call will be web
cast on the investor relations' page of  www.prepaidlegal.com or may be accessed
by dialing  (913)  981-5519.  Audio replay will be available  beginning at 11:30
a.m.  Eastern Time on February 22, 2006 and will run through  midnight  Tuesday,
February  28,  2006 by  dialing  (719)  457-0820;  pass  code for the  replay is
4080978.  The  presentation  will be available on the web site  indefinitely  by
selecting "Earnings Calls" under the "Investor Relations" section. Questions may
be submitted prior to the call via email to investor@pplsi.com.

About Pre-Paid Legal Services

We believe our products are one of a kind, life events legal service plans.  Our
plans provide for legal service benefits provided through a network of more than
50  independent  law firms  across the U.S.  and Canada,  and include  unlimited
attorney   consultation,   will   preparation,    traffic   violation   defense,
automobile-related   criminal   charges   defense,   letter  writing,   document
preparation and review and a general trial defense benefit.  We have an identity
theft restoration  product we think is also one of a kind due to the combination
of our identity  theft  restoration  partner and our  provider  law firms.  More
information  about  us  and  our  products  can be  found  at  our  homepage  at
http://www.prepaidlegal.com.

     Forward-Looking Statements
     Statements in this press release, other than purely historical information,
regarding  our future  plans and  objectives  and  expected  operating  results,
dividends and share  repurchases  and statements of the  assumptions  underlying
such statements,  constitute  forward-looking  statements  within the meaning of
Section  21E  of  the  Securities  Exchange  Act of  1934.  The  forward-looking
statements  contained  herein are based on certain  assumptions  that may not be
correct.  They are subject to risks and  uncertainties  incident to our business
that could cause actual results to differ materially from those described in the
forward-looking  statements.  These risks and uncertainties are described in the
reports and statements filed by us with the Securities and Exchange  Commission,
including  (among others) those listed in our Form 10-K, Form 10-Q and Form 8-K,
and  include  the risks that our  membership  persistency  or renewal  rates may
decline,  that we may  not be able to  continue  to  grow  our  memberships  and
earnings,  that we are dependent on the continued  active  participation  of our
principal  executive  officer,  that  pending  or future  litigation  may have a
material  adverse  effect on us if resolved  unfavorably to us, that we could be
adversely affected by regulatory developments,  that competition could adversely
affect us, that we are substantially  dependent on our marketing force, that our
stock  price may be  affected  by short  sellers,  that we have  been  unable to
increase  significantly  our employee group  membership  sales,  that our active
premium in force is not  indicative of future  revenue as a result of changes in
active memberships from  cancellations and additional  membership sales and that
we may have material  weaknesses  in our internal  control  environment.  Please
refer  to  pages  38 and 39 of our  2004  Form  10-K  and  pages  8 and 9 of our
September 30, 2005 Form 10-Q for a more complete  description of these risks. We
undertake  no duty  to  update  any of the  forward-looking  statements  in this
release.




PRE-PAID LEGAL SERVICES, INC.
Financial Highlights (Unaudited)

             (Dollars and shares in 000s, except per share amounts)

                                                                        Three Months              Year Ended
                                                                     Ended December 31,          December 31,
                                                                  ------------------------ ------------------------
                                                                      2005        2004         2005         2004
                                                                  -----------  ----------- -----------  -----------
Revenues:
                                                                                            
  Membership fees..............................................   $   100,649  $    91,274 $   389,255  $   355,461
  Associate services...........................................         7,411        6,294      28,963       24,901
  Other........................................................         1,224        1,478       5,162        5,575
                                                                  -----------  ----------- -----------  -----------
                                                                      109,284       99,046     423,380      385,937
                                                                  -----------  ----------- -----------  -----------
Costs and expenses:
  Membership benefits..........................................        35,800       31,445     137,150      122,280
  Commissions..................................................        33,760       29,797     141,631      118,757
  Associate services and direct marketing......................         5,707        7,714      30,453       29,325
  General and administrative...................................        13,564       11,709      49,015       43,742
  Other, net...................................................         3,099        2,362      10,456        9,578
                                                                  -----------  ----------- -----------  -----------
                                                                       91,930       83,027     368,705      323,682
                                                                  -----------  ----------- -----------  -----------

Income before income taxes.....................................        17,354       16,019      54,675       62,255
Provision for income taxes.....................................         5,987        5,527      18,863       21,478
                                                                  -----------  ----------- -----------  -----------
Net income.....................................................   $    11,367  $    10,492 $    35,812  $    40,777
                                                                  -----------  ----------- -----------  -----------
Basic earnings per common share................................   $      .73   $      .68  $     2.31   $     2.50
                                                                  -----------  ----------- -----------  -----------
Diluted earnings per common share..............................   $      .73   $      .66  $     2.29   $     2.48
                                                                  -----------  ----------- -----------  -----------
Dividends declared per common share............................   $      .30   $      .50  $      .60   $      .50
                                                                  -----------  ----------- -----------  -----------

Weighted average number of shares:
  Basic........................................................        15,467       15,540      15,470       16,313
  Diluted......................................................        15,635       15,778      15,652       16,458


Net cash provided before changes in assets and liabilities..............................     $   45,443  $    51,689
Net cash provided by operating activities...............................................     $   50,131  $    47,263
Net cash used in investing activities...................................................     $  (15,545) $   (11,322)
Net cash used in financing activities...................................................     $  (26,601) $   (31,428)



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