The Blue Cross SME Plan
An alternative solution to traditional
group benefits
Accelerating your
commissions with the
Blue Cross SME Plan
An alternative to traditional group
benefits
1. Challenges
2. Opportunities
Agenda
3. Productivity Multiplier!
4. SMEs Plan introduction
5. Ticket to success = SME Bootcamp
Challenges
Challenges
 Keeping a steady flow of qualified prospects coming into
your pipeline
 Increasing your success rate when prospecting
 Generating ongoing revenue
 Generating recurring revenue
Challenges
Keeping a steady flow of qualified prospects coming into your
pipeline
Challenges

How much time and effort do you spend to get 10 new
qualified leads/prospects a month?

What are you doing to achieve that?

Are you prospecting, networking, spending marketing
dollars, getting referrals…?
Generating Ongoing Revenue
How much time does it take to earn $5,000 in first year
commission in one sale?
Opportunity
10 qualified leads = 2 appointments
2 appointments = 1 sale
Generating Recurring Revenue
How do you get paid without making a new sale?
Opportunity
RENEWALS
The Accelerator
SME Business from our top producers
Opportunity
 Average policies per sale
10
 Average premium per sale
$20,000
 Average SME commission
$5,000 FYC
$1,400 Renewal
This is what we refer to as a Productivity Multiplier!
SME Revenue Opportunity
Opportunity
Success Factors
Opportunity
Niche
 Provide products and services to a group that advisors
and insurers have overlooked
Network
 With whom do you have an affinity?
Branding Yourself
 Being known in certain industries i.e. food processing,
manufacturing, retail, medical, dental, etc.
Unique product offerings
 Providing flexibility for both the owner and employees
Success Factors
 99% of Ontario’s businesses are made up of small and
medium size enterprises
Opportunity
 50% of Ontario’s jobs are with small and medium size
enterprises
 Average income of a fulltime SME employee in Ontario is
$52,000
Source: Statistics Canada
Ontario SME Businesses
Opportunity
Source: Statistics Canada
EMPLOYEES
BUSINESSES
5-9
60,607
10-19
44,306
20-49
33,298
50-99
12,167
Opportunity Summary
Challenge #1
Opportunity
Keeping a steady flow of qualified prospects coming into
your pipeline
Opportunity #1
SMEs with no group plan are all looking for cost effective
solutions to:



Source: Statistics Canada
Attract talent
Keep good employees
Keep employee motivated
Opportunity Summary
Challenge #2
Generating ongoing revenue
Opportunity
Opportunity #2
 Employee turnover creates opportunity
 Growing SMEs will contact you every time they hire a
new employee
Source: Statistics Canada
Opportunity Summary
Challenge #3
Generating recurring revenue
Opportunity
Opportunity #3
 You get higher renewals than traditional group insurance
 Plus, a persistency bonus
Source: Statistics Canada
SME Plan
An alternative to traditional group
benefits
Target Customers
 Ideal for small businesses of 5 lives plus
Product
Eligibility
 Must have OHIP coverage
Product
 Not hospitalized or disabled when the contracts
comes into effect
 Must be able to meet all requirements of the SME
declaration
Highlights
Product
 Combines all of the strengths of a small group plan
with all of the strengths of an individual plan
 Flexibility
 Portability
 Stability
 Usability
Features
 Excellent selection of benefits with NO medical
underwriting up to specified limits
Product
 Ability for each employee to purchase additional
amounts by completing a health statement
(underwriting will apply)
 Can add Express Plan benefits to enhance coverage
Reduced Medical Underwriting
85% participation required
Product
Benefit Highlights
Product
Disability
 Excellent and well priced ROP benefit
 Regular occupation to age 65 (optional)
 Non-cancellable
 Portable
Life T-65
 Can be converted anytime prior to age 65 to a T100
with no medical evidence (up to $200,000)
Benefit Highlights
Drug Benefit
 Choice of $1,500/person/year or $10,000/person/year
(with 2 additional health questions)
Product
Extended Health
 Choice of Regular or Enhanced benefits
Dental
 No waiting period
 Root canals eligible immediately
 1st year is pro-rated
Year
Amount Coinsurance
Year 1 $750
70%
Year 2 $1,000
75%
Year 3 $1,250
80%
Case Study #1
Family business (5 lives)
Case Study
 Father, mother, two sons and a cousin
 100% family content
Problem: Unable to find traditional group coverage due to
family content restrictions.
Solution: Purchase a Blue Vision SMEs Plan where each
person selects different benefits that suit their needs.
Case Study #2
Case Study
Corporate Head Office (60 lives)
Problem: Owner wanted comprehensive coverage for the
administration staff, but only wanted to offer minimal
benefits to the other employees.
Solution: Owner purchased comprehensive coverage for
the administration staff and paid $10 per month of benefits
for each of his other employees.
This also allowed the other employees to have access to
preferred medical underwriting for other benefits which
they were able to pay for on their own.
Case Study #3
New Machine Shop
Case Study
Problem: Need to insure 6 lives and had a budget of only
$250 per month.
Solution for only $39 per employee per month:
BENEFIT
AMOUNT
DI due to Accident
$1,000 per month
Term Life 65
$25,000
AD & Loss of Use
$25,000
Accidental Fracture
$5,000
Extended Health and Hospital Due to Accident
Case Study #4
Case Study
Manufacturing Company
Problem: Only 9 of 17 employees wanted DI benefits
Solution:
 9 employees purchased $1,500 per month of DI due to
Accident and Illness with a 30 day waiting period up to
age 65
 8 employees purchased $500 per month of DI due to
Accident and Illness with a 120 day waiting period and a
2 year benefit so that the group could qualify for an SME
Plan.
Case Study #5
Medical Clinic
Case Study
Problem: 5 life group. Only 4 employees needed benefits as
the fifth had spousal benefits elsewhere. Group did not
initially meet the minimum participation requirements of
85%.
Solution:
 Fifth employee purchased $10 of Express Plan benefits in
order to meet the participation requirements.
Case Study #6
Retail Shop
Case Study
Problem: All 5 employees applied for the SME Plan and 2
employees were uninsurable.
Solution:
 SME was issued on the remaining 3 lives.
Case Study #7
Marketing Company
Case Study
Problem: Group of 12 where 2 employees have existing
individual coverage with Blue Cross.
Solution:
 Blue Cross issued the SME and included the 2 members
with the individual benefits as part of the SME
participation.
 The group now qualifies for higher benefits 11+ lives
Case Study #8
Office
Case Study
Problem: Group has $3,000 per month of LTD coverage (5
year regular occupation) with another group plan.
Solution:
 Blue Cross issued an SME and grandfathered $3,000 per
month of DI (regular occupation to age 65) with ROP.
Summary
Assistance
Program
http://www.blueadvantage.ca
How to successfully sell an SME
SME
Boot Camp
 Step 1
Attend Blue Cross SME Boot Camp
 Step 2
Look for SME prospects who…





Need to attract talent
Need to retain good employees
Have no group insurance or are not pleased with current insurer
Want to differentiate themselves from their competitors
Are growing
 Step 3
Get trained and coached by your Blue Cross Sales Representative
 Step 4
Sign up TODAY