Voluntary Benefits
Mainstream Market
Voluntary Supplemental Benefits
Insurance Community University
Welcome to your Insurance
Community University
Audio
• All of you are currently on mute
– Un-mute your own system
– Telephone Option
• Select Telephone on your screen
• Dial in the PIN number so that your number
becomes active
– Microphone and/or Speaker Option
• You can use this option if you have a headset
Insurance Community
University
2
that you use
with your computer
Participation & Chat Window
• You will receive information from the monitor via
the ‘Chat’ window.
– Please locate window in the control panel
• Q & A is welcomed during the presentation and at
the end of the presentation
• You will find the question box on your control
panel
– Write your question in that box
and send it to the presenter/organizer
• The presenter will take those
• questions in the order submitted
Insurance Community University
3
DOI Requirements
• When you see a slide with the hand up symbol, touch
the “hand” icon on your control panel
– Click ONCE only
• If you do not raise your hand, the monitor will be in
contact with you in the chat box
• If you are in a group, the designated proctor is
responsible to make certain you are all in attendance
at all times
= Hand is down
Insurance Community University
4
Polling
• Throughout the class we will be
conducting periodic polls
• We need 100% participation on the polls
• The polls are intended to check
participation but also to create
discussion topics throughout the
presentation
Insurance Community University
5
Forms To Complete for CE
• After class ends
– Return attendance form
– Proctors – return your form to email
address
• Email address is in chat window or in
email sent to you today
Insurance Community University
6
DOI Requirements
• We will file your hours with the DOI
after the completion of this webinar and
we have received the attendance form.
• You have 48 hours to return the form
• You will be sent a Certificate of
Attendance/Completion by
email. Please retain this for your
records for five years.
Insurance Community University
7
Internet Disruption
• If the presenter looses internet
connection STAY ON THE LINE
• The administrators will communicate
with you
Insurance Community University
Internet Failure
• If the internet fails and all participants
are kicked off line by Go To Training or
other source then the seminar will be
terminated
• You will receive instructions by email as
to how we will proceed
• This is a precautionary notice, only
Insurance Community University
9
This class is being recorded
• Available in the University
• This course is approved for CE in CA
Only
Insurance Community University
Disclaimer
Insurance forms and endorsements vary based on insurance
company; changes in edition dates; regulations; court
decisions; and state jurisdiction. This instructional
materials provided by Insight is intended as a general
guideline and any interpretations provided by the
instructor or the creator(s) of this material do not modify
or revise insurance policy language. In providing these
materials, the authors assume neither liability nor
responsibility to any person or business with respect to
any loss that is alleged to be caused directly or indirectly
as a result of the instructional materials provided.
Copyright 2010 – 2013 All Rights Reserved
www.insurancecommunitycenter.com
Insurance Community University
11
Disclaimer:
• All of the following material is for educational
purposes only. The Contractual Risk Management
area of liability and coverage is in a constant state of
change. What is current today can be outdated
tomorrow.
• This information is to be understood from a risk
management perspective only. It is not intended as a
• substitute for competent legal advice. You should
check with your legal adviser to determine suitability,
if any, to your specific circumstances.
Insurance Community University
12
Sponsored and Presented By:
Presented by:
Joe Quintana
Voluntary Benefits Practice Leader
The Guardian Life Insurance Company of America
FOR AGENT/BROKER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.
2013-11574
The Guardian Life Insurance Company of America 7 Hanover Square, New York, NY 10004
Insurance Community University
Polling Question #1
• Do you currently sell or are involved in the promotion
of voluntary benefits to your clients?
• For those of you who typed, “Yes”, please type in your
chat box the percentage of firms that actually
purchased voluntary benefits (use percentage)
Insurance Community University
Polling Question #2
• Have you ever sold voluntary Benefits?
• For those of you who typed, “Yes”, please type in your
chat box the percentage of firms that actually
purchased voluntary benefits (use percentage)
Insurance Community University
Session Description
• By the end of this session, you will understand:
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–
–
the viability of the VB marketplace
the buyers’ knowledge of VB plans
the trends in the VB marketplace
the advantages of VB to employers, employees, & brokers
the various VB delivery methods
why you need to be growing your revenue stream with VB
why you need to be involved with VB to protect your client
relationships
Insurance Community University
Current Situation
• The brokers’ world looks a little different these days
• Brokers are looking for ways to increase revenue
• Employers are starting to hire again
• Voluntary Supplemental Benefits are a powerful
solution
Insurance Community University
Current Situation
LIMRA Study, August 2011:
30% of US employers(10 +) said they are considering adding new
voluntary options in the next 2 yrs.
57% of US employers offer voluntary benefits, & the rate rises as
employer size increases
Cancer, Life Insurance, and Short Term Disability are the most
commonly offered voluntary benefits
Almost 1/3rd of all employers are considering offering new voluntary
benefits to replace existing employer-paid &contributory benefits
Insurance Community University
Current Consumers
Top 5 Challenges Facing HR Representatives
Controlling Health Insurance Costs
Controlling Cost of Overall Benefits
Controlling Compensation Costs
Increasing Employee Productivity
Complying with Regulations
Insurance Community University
Top Trends & Challenges
in Post-Recession Recovery
Economic pressures
Administrative demands
Rising health care costs
and slow economic
recovery
Absence management and
employee benefits data
Health care reform
Legal mandates and
tax implications
Employee
engagement
Decreased worker
satisfaction/productivity
Insurance Community University
Employees at risk
High expense of illness
or injury
Voluntary Benefits Market History
1950s
1990s
Today
Early market elements
• Employer-sponsored benefits
• Insurance & investment products
• Payroll deduction or salary savings plans
• Employee-pay-all
• Offered by individual brokers & agents
Marketplace changes
• Broader product range
• Worksite marketing
• Payroll deduction
• Offered by several group market carriers
New benefits trends
● Financial crisis & economic environment
• Escalating healthcare costs
• Increasingly diverse workforce
• Decision making & cost shifting to employee
Insurance Community University
Market Trends
Worksite Market Trends
Rising Cost of
Healthcare
Employer
Disengagement
Increased
Consumerism
New
Distribution
Outlets
Insurance Community University
Widening gap
between upper
& middle
income
markets
Fewer
Traditional
Insurance
Agents
Low Personal
Savings / Unmet needs
A Solution That Works In Today’s
Marketplace
Indemnity-based plans
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•
•
•
Indemnity benefits — what you see is what you get
Doesn’t coordinate with major medical or affect utilization
Rapid claims payment
Rate stability — less susceptible to trends
These are NOT “expense-based” plans
• Sometimes called gap or wrap plans
• Coordinate with core health insurance
• Reliant on claims adjudication process before payment is made
Insurance Community University
Worksite Market Trends
Source: Eastbridge U.S. Worksite/Voluntary Sales Report – Carrier Results for 2011 (April 2012)
Insurance Community University
Significant Growth Opportunities
for Voluntary Benefits
To meet diverse needs and control costs,
employers are turning to voluntary benefits.
Industry in force premium – worksite products1
Average $ in billions
25
20
$20.2
$21.8
$21.6
2008
2009
2010
$18.2
$17.2
15
$13.2
10
$14.6
$15.6
$11.7
$9.4
5
$8.0
0
2000
2001
2002
2003
2004
2005
2006
2007
1 “U.S. Worksite Sales Report Carrier Results for 2010,” Eastbridge Consulting Group, Inc., May 2011..
Insurance Community University
Growth of Voluntary Market Continues
2011 showed good
voluntary sales
momentum
YTD 3Q 2011
Industry Sales Growth
24%
21%
Heath care reform
continued to influence VB
growth
5%
77% of employers (with
10+employees) now offer
at least one voluntary
benefit
Insurance Community University
LIMRA’s Worksite Marketing of Voluntary Products,
Quarterly U.S. Sales Survey, 3Q2011
2011 Voluntary Sales by Product ($M)
Accident market is larger than the Dental market!
$777
$1,396
Life/AD&D
Disability
$231
Accident
$243
Dental
Cancer
$409
Critical Illness
Vision
$1,075
$610
Other
$738
Source: Eastbridge 2011 U.S. Worksite/Voluntary Sales Report
Insurance Community University
Needs for Voluntary Benefits
Fills Benefit
Gaps
Increasing
exposure to
Medical Costs
NonMedical
Costs
Broker Needs
Employer Needs
Employee Needs
Cost &
Risk
Shifting
Voluntary can help solve HR challenges
HR challenges
Reducing
administrative
costs
Controlling
healthcare costs
Retaining
critical skills
Offering a full
range of benefits
Voluntary solutions
Helps employer subsidize core benefit
education while communicating all benefits
and services at one event
Helps offset the impact of medical insurance
cost-sharing, which can increase employees’
deductibles, co-pays, premiums and coinsurance
Helps to enrich benefit offering, improving
workplace satisfaction, employee
engagement and loyalty
Helps to add valuable benefits for employees
at little or no direct cost
to the employer
Unum, “Employee Education and Enrollment Survey,” January 2009.
Insurance Community University
Value to Employer
• Increase benefits with little or no cost to the
employer
• Increased Tax Savings
• Less Administration
• One Bill
• Cost containment Strategies
• Reduce benefit Gaps
• Employee Attraction Retention
• Improved Morale
Insurance Community University
What’s in
it for me?
Value To Broker/Agency
•
Increased revenue
•
Client solutions
•
Client retention
•
Enrollment options
•
Reduced administration
•
Isolate from competition
Insurance Community University
What’s in
it for me?
Fills Gaps in Medical Coverage
– Covers expenses that aren’t usually covered by
medical
– Pays benefits no matter what other coverage is in
force
– Provides payments directly to the employee – and
can be used in any manner the employee chooses
– Employee medical out-of-pocket (deductible,
coinsurance, copays) expenses continue to
increase – Accident and Cancer benefits can be
used to pay these out-of-pocket expenses
Insurance Community University
How Do VB Plans Work?
Expenses
Covered by
Medical
Insurance
Employee
Out of
Pocket
Expenses
Insurance Community University
Helps pay Employee
Out-of-Pocket Costs
• Co-Pays
• Deductibles
• Over-the-Counter
• Non-Medical
• Lost Wages
“Gap” Insurance
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Coverage for Uninsured Expenses
Insurance Community University
Evolving Voluntary Portfolio
Insurance Community University
Voluntary Benefits
Accident, Cancer, and Critical Illness
Available to 16+ life groups
Complementary coverage that meets evolving demands
for clients’ benefits offering
Offsets out-of-pocket costs from Medical Insurance and
income gap with Disability Insurance
Flexibility to create multiple options so to properly
address various employee needs and affordability
Benefits paid directly to the insured
Insurance Community University
Why should employers and employees be
interested in accident and cancer products?
Fills Gaps in Medical Coverage
Flexible options for an employee to financially protect their family
Inability to purchase these benefits outside of the workplace
More competitive benefits package = happy workforce
•
Insurance Community University
Cancer Insurance
Insurance Community University
Cancer – The Pocket Pains!
Insurance Community University
And Cancer Costs Are High
• Average out of pocket cost for cancer $1,266 per month*
• Overall cost of cancer in 2010 was $263.8 billion**
• 20% of people with health insurance still can’t afford cancer
therapy. In fact, a year of treatment for blood cancers such as
leukemia reached $1 million in 2008, which would max out the
limits of most health insurance policies**
*American Journal of Medicine, 2009
**Duke University Medical Center, 2011
*** American Cancer Society and Kaiser Family Foundation study, 2008
Insurance Community University
Cancer Costs?
⅔ of the costs of cancer are not covered by medical
Time off for a spouse or family member to help out
Travel to and from treatment centers
Additional child care support
Ongoing household bills on decreased income
Can’t forget coinsurance, deductibles, Rx, etc
Over 1.6 million new cancer cases were expected to be
diagnosed in 2011*
*American Cancer Society, Cancer Facts & Figures 2011
Insurance Community University
Cancer Insurance Working for You
• Lump sum benefits paid directly to you for Cancer
treatment
• Helps with costs not covered by medical insurance
such as:
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•
loss of wages
deductibles
coinsurance
alternative care
travel to treatment centers
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•
Insurance Community University
experimental treatment
lodging
meals
childcare
Critical Illness Insurance
Insurance Community University
Critical Illness (CI)
How it can protect
Lump sum benefit upon diagnosis
of covered illness
Heart attack, stroke, major organ
transplants, bypass surgery, kidney
failure, with optional cancer &
carcinoma in situ1 covered
Hospital Admission Benefit pays when
admitted to the hospital for any reason
besides the covered conditions
Product options
Benefit range $5k-$50k
Preventive care encouraged by
optional benefit for health screenings
Available for spouse and children
Who’s at risk?2
The estimated
probability of
developing cancer
during a lifetime
1 /2
1 /3
of men
of women
1 Please see policy definitions for complete details about these
covered conditions.
2 American Cancer Society, “Who Gets Cancer,” February 24, 2009.
Insurance Community University
Critical Illness Case Study
The Solution
$20,000 Critical Illness policy
Total medical costs: $41,000
The
Situation
Total
Health
Benefit Cost
Per Active Employee,
51 year old male
1994-2004
Light manufacturing company
Heart attack
Expenses not covered by
major medical plan:
Emergency care co-pay: $100
Deductible: $1,000
Co-insurance: $2,000
Specialist visit co-pay: $240
PPO Medical Plan
Lost wages: $1,540
Total out-of-pocket: $4,880
Insurance Community University
Lump sum payment provided to
the employee upon diagnosis
Benefit can be used to help
cover expenses that may not be
covered by major medical
insurance and replace lost or
reduced income. Other possible
uses:
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Mortgage or car payment
Monthly bills
Transportation
Dependent care
Household expenses
Life Cycle of An Accident
Transportation
Follow-Up
Family
Doctor
Accident
Hospitalization
Imaging
Diagnosis
Treatment
Insurance Community University
Provide Choice
Different People
Different Ages
Different Life Styles
Just Different
Different Needs
Insurance Community University
How Does It Work?
Insurance Community University
How Do Accident and Cancer Work?
Pay scheduled amounts for covered items
regardless of other medical insurance
Cancer
Accident
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Emergency treatment
Ambulance
Burns
Dislocations
Fractures
Hospital Confinement
Surgery
AD&D Benefits
4-Tier Rates – No Age bands
No E of I
No Pre-x
Minimum 5 enrolled (no %)
Fully portable
On-and-off Job or Off-Job only
No Benefit Waiting period
•
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•
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Early detection tests
Diagnosis (like CI)
Surgery
Radiation
Chemotherapy
Prosthesis
Hospital confinement
4-Tier Rates
One Yes/No question
12/12 pre-x
Minimum 5 enrolled (no %)
Age-banded (offer both attained-age and
issue-age rates)
Fully portable
Benefit Waiting period on Initial Diagnosis
Insurance Community University
Levels of Coverage
Value…………Advantage…………Premier
– Both products will have three levels of coverage:
Value, Advantage, or Premier
– Critical Illness has GI for groups 50+ lives (up to certain amounts)
– 3-5 health questions when applying for over the GI
– Employer can choose to offer one, two, or three levels of coverage
– Enrollment materials will display side by side
Insurance Community University
Underwriting
Accident
•
No Medical questions………ever
•
Some industry restrictions, similar to AD&D
Cancer
• One conditional issue question on the enrollment form
•
•
•
“Yes” answer is an automatic decline, no further underwriting
performed
Late entrants must complete the conditional issue question
No full E of I form is used
Critical Illness
•
•
GI available for groups 50+ lives
3 – 5 health questions for amounts over GI
Insurance Community University
Available Accident Riders
Accident
• AD&D Benefits
• Available on Employee, Spouse, & Child
• Benefits include: Dismemberment, Common Carrier, Common Disaster, Seatbelt & Airbag,
Catastrophic Loss, Reasonable Accommodation
• Benefit can be removed if quoting stand alone AD&D alongside Accident
Value
Advantage
Premier
$10,000 EE
$ 5,000 SP & CH
$25,000 EE
$12,500 SP
$ 5,000 CH
$50,000 EE
$25,000 SP
$ 5,000 CH
• Wellness Benefit
• Benefit applies to Employee, Spouse & Child
• Options from $50 to $150 (in $25 increments) per year
Insurance Community University
Available Accident Riders
Accident
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•
Disability Rider
Available on Employee and Spouse
Off Job only or On & Off Job
Sickness may be included
Employee Total definition of disability
Spouse ADL definition of disability
Pre-x applies
Value
Advantage
Premier
$125/week up to
26 weeks, 30 day
EP acc & sick
$250/week up to
26 weeks, 0 day EP
acc/30 day EP sick
$350/week up to
52 weeks, 0 day EP
acc/30 day EP sick
• Hospital Confinement Sickness
• Available on Employee, Spouse & Child
• Pre-x applies
Value
Advantage
Premier
$50 per day up to
10 days, 3 day EP
$50 per day up to
10 days, 3 day EP
$50 per day up to
10 days, 0 day EP
Insurance Community University
Accident Insurance
Insurance Community University
Accident - Kids’ Organized Sports Kicker
All accident benefits otherwise
paid for a child (age 18 and
under) being injured playing
organized sports – increased
by 20%
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Accident - Claim in Action
Here’s the breakdown of what Jarrett’s claim would look like if his
parents had the Advantage Accident plan with Guardian.
Benefit
Additional Child
Organized Sport benefit
Ambulance ride
$150
$30
Emergency Room visit
$175
$35
$1,000
$200
MRI
$150
$30
Concussion
$75
$15
$50 X 2 = $100
$20
$1,650
$330
Procedure
Hospital admission (his
stay was over 20 hours)
2 Follow up doctor visits
TOTAL BENEFIT
GRAND TOTAL
$1,980
Annual premium for Full Family ≈ $600
Insurance Community University
Available Cancer Riders
Cancer Riders
Initial Diagnosis Benefit
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–
Initial Diagnosis Benefit
Lump sum benefit received upon diagnosis of Cancer
30 day benefit waiting period
Benefit can be removed if quoting CI with Cancer alongside the stand alone
Cancer product
– First ever while insured
Value
Advantage
Premier
No benefit
$2,500
$5,000
Cancer Screening Benefit
• Benefit applies to Employee, Spouse & Child
• Options from $50 to $150 (in $25 increments) per year
Pricing preliminary and subject to change.
Insurance Community University
Cancer Claim in Action
Example of Diagnosed Kidney Cancer in October 2008. Treatment spans over two years
since the cancer metastasized to the brain and required additional treatment. Below
breaks down how the claim would be handled under Guardian’s Cancer coverage.
What Happened?
Kidney Cancer diagnosed
Travel by train to NJ for radiation
therapy, 60 miles each way
Date & Benefit
Benefit Amount
10/2008 Kidney Cancer Diagnosed
$5,000
10/2008 Kidney Nephrectomy
(simple)
$2,888 – including 25% extra for
anesthesia
10/2008 Hospital Confinement
$400/day X 7 days = $2,800
10/2008 Attending Doctor Visits
$25/day x 7 days = $175
10/2008 MRI
$200
11/2008 4 weeks of chemotherapy
$1000/week x4 = $4000
12/2008 4 weeks of radiation
therapy
$600/week x 4 = $2400
12/2008 Transportation Benefit for
George and friend
$0.50/mile X 120 miles = $60
$60 X 30 treatments = $1,800 x
2 people = $3600
11 & 12/2008 2 months of antinausea meds
$250/month x 2 = $500
Insurance Community University
Cancer Claim in Action - continued
Treatment
Cancer metastasized to the
brain
Date & Benefit
Benefit Amount
2/2009 Ambulance to hospital
$250
2/2009 MRI
$200
2/2009 Brain – Excision brain
tumor
$4813 including 25% extra for
anesthesia
2/2009 Hospital Confinement
$400/day X 12 days = $4,800
2/2009 Attending doctor visits
$25 x 12 days = $300
3/2009 Extended Care Facility
$150 day x 30 days = $4500
4/2009 Hospice Care
$100 day x 20 days= $2000
Yearly Family Premium
= $609
Insurance Community University
TOTAL = $38,426
Critical Illness
Lump sum payment of $2k- $50k upon the first ever or second ever
diagnosis of each covered Critical Illness. $5,000 minimum lump sum for
Voluntary plans. 16+ eligible lives.
* 150% lifetime limit. Schedule excluding Cancer coverage is available.
Insurance Community University
Complement to Other Coverages
Medical Plan
Coverage for
medical services,
as defined by a
company’s plan
Accident and Cancer and CI
Help with medical and non-medical
expenses when a serious illness strikes.
Medical Examples:
• Deductibles
• Out-of-network costs
• Experimental treatments
Non-medical Examples:
• Time off taken by spouse
• Travel to treatment centers
• Ongoing household bills on decreased
income
Life
Normally a benefit
to a beneficiary
(may feature an
Accelerated Life
benefit but person
must be diagnosed
with a terminal
condition)
Insurance Community University
Disability Plan
Replacement of a portion of income
Timing is Right for VB to Grow
“51% of brokers expect to make changes in the VB
products they sell because of Health Care Reform.
More than half expect to sell additional accident,
critical illness, short term disability, cancer and term
life VB benefits.”
– Eastbridge Consulting, Oct. 2010
Insurance Community University
Typical Benefit Plan Offerings
• Major Medical Plan
• Dental & Vision Plans
• Flexible Spending Accounts (FSA’s)
• Short and/or Long Term Disability Plans
• Employer Paid Life
• Section 125 Pre-Taxing of Premiums
Insurance Community University
Additional Benefits
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Long Term Care
Employee Credit Unions
Gym Memberships
401(k) or 403(b) Retirement Plans
Safety Awards
Service Awards
Vacation
Holidays
Sick Days
Leaves of Absence
Uniform Program
Holiday Parties, Movie & Sports Event Tickets
Insurance Community University
VB Plans in the Market
• Individually Underwritten VB plans are:
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Individually owned
Paid for by employee
Portable
Guaranteed Renewable
Usually no price increases
Usually no minimum participation requirements
• Some VB plans are Group plans
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Master policy held by the employer
Many are portable or convertible
May offer levels of GI
May have minimum participation requirements
May offer simplified administration
Insurance Community University
Polling Question #3
Does major medical cover employee’s lost income during
a disability?
Insurance Community University
Compare Two Employers
Without VB
•
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Major Medical
Dental
Vision
Employer Paid Life
With VB
•
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•
•
•
•
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•
Insurance Community University
Major Medical
Dental
Vision
Employer Paid Life
Short Term Disability
Accident Insurance
Cancer Insurance
Critical Illness Insurance
Hospital Indemnity Insurance
Term Life, Universal Life,
Whole Life Insurance
Flexible Spending Account
Questions
• Which employer is more attractive to current employees?
– Why?
• Which employer is more attractive to prospective employees?
– Why?
• Which employer has a lower overall turnover rate?
– Why?
• Which employer has a more expensive benefit plan offering?
– Why?
Insurance Community University
Employee Benefits Choices
Can Add Value
Unum, “Employee Education and Enrollment Survey,” January 2009.
Insurance Community University
VB Plan Carriers (partial list)
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Guardian
Colonial Life
Aflac
ING
Unum
Hartford
Lincoln
Worksite Benefits
Humana
Assurant
Cigna
Conseco
Jefferson Pilot
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•
Insurance Community University
Transamerica
SSI
Chimente
Boston Mutual
Combined Insurance
American Fidelity
American General
Reliance Standard
Allstate
Trustmark
Safeco
Provident Life
More….
How Do Employees
Make Choices?
• Different methods, styles, processes, & requirements of
enrollment
• Available methods:
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One-on-One Meetings
Group Meetings
Co-Browsing
Telephone
Self Service
Printed Materials
Intranet HR Benefits Websites
Census
Insurance Community University
Section 125 Cafeteria Plan Saves Taxes
• Governed by the IRS
• Allows you to pre-tax qualified premiums such as
medical, dental, disability, cancer, vision, FSA’s etc.
• No cost to you to use this plan
• Changes can only be made at re-enrollment time
each year unless there is a family status change
Insurance Community University
Flexible Spending Accounts
What if you could
buy your
prescription and
OTC drugs at a
discount(if
prescribed by a
doctor?)
Insurance Community University
Flexible Spending Accounts
What if you could
pay for dependent
care tax free?
Insurance Community University
Section 125 Cafeteria Plan Saves Taxes
After Tax Plan
$1,000
Income
Taxable Gross
Pre-Tax Plan
$1,000 Taxable Gross Income
Flex dollars or
250
Taxes
750
After Taxes
100 Insurance Premiums
900 New Taxable Income
100
$650
Insurance premiums
Net Spendable
225 Taxes
$675 Net Spendable
Employees can save 15% - 45% of employee-paid benefits!
Insurance Community University
Flexible
Spending
Accounts
Health Care Flexible Spending Account
You can use this money to be reimbursed for eligible medical
expenses not covered by your major medical insurance plan
• Prescriptions and over-the-counter medications prescribed
by a Doctor
• Deductibles, co-insurance and co-payments
• Eyeglasses, contact lenses or LASIK
• Dental and orthodontia expenses
Effective with next years, 1/1/2011 HCR rules disallow overthe-counter meds as reimbursable items unless prescribed
by a Doctor.
Insurance Community University
Polling Question 4
Can employee FSA payroll deductions be managed
inside an employer’s payroll system with a TPA
(Third Party Administrator)?
Insurance Community University
How are we responding to Worksite?
How does Worksite fit into their business?
Reactive
Strategic
Enrollment
Insurance Community University
Revenue
Prospecting: Where to Start
Additions to
Portfolio
Not all at
Once
Takeovers
Prospecting
Medical
Carrier
Changing
Fill HDHP
Gaps
Promote
Benefit
Education
Are your clients well protected?
Insurance Community University
Effective Discovery
Insurance Community University
Employers need benefits to drive business
recovery
• Benefits are a vital business strategy for attracting & retaining
quality workers
• Even after companies have recovered, competition for quality
employees will continue
• Robust & cost-effective benefit plans will continue to feed
corporate strategies for maintaining a healthy company
• This means “Opportunity” for Brokers
Insurance Community University
Key Advantages to Employers
• Better management of their benefit costs
• Lower payroll taxes
• Time and money savings
• Employee satisfaction
Insurance Community University
Other Financial Incentives for Employers
• Lower Worker’s Comp premiums through reduced
claims (can vary state-by-state depending upon the
level of SDI and Worker’s Comp available to the
employee)
• Drives down the experience mod over time
• Occurs because of the higher disability benefits
available
Insurance Community University
Recap
•
•
•
•
•
The marketplace has been ready for VB
Advantages of having VB in the plan design vs. not having them
Important to “properly educate & communicate”
Understand the different VB plans & how they work
Advantages of Section 125 pre-taxing of premiums
Insurance Community University
Please hold up your hand
Insurance Community University
Upcoming Classes
Upcoming University/Paid CE FREE to University Members
Classes
$50.00/charge for non university members
10/17
Agricultural Equipment Breakdown
10/24
Homeowners Problems and Solutions
10/31
Earthquake and DIC Coverage
Upcoming Community Classes FREE to University Members
$25.00/charge for non university members
10/22
Cyber Liability and the Personal Lines
Account
Join the University TODAY. www.insurancecommunitycenter.com
Click Join University at the top of the bar
Insurance Community University
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