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People are
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THE PROBLEM
THE BENEFITS ENVIRONMENT
EMPLOYER:
Employees tend to take employer provided benefits for granted, with little acknowledgement of the costs. An example of this is that many employees believe the contributory portion of their group benefit premium is the actual costs of the benefit. This lack of understanding is an increasing challenge to employers. Increasing overall awareness of the value of employer provided benefits is an effective strategy to address this challenge.
Employee benefits must be kept competitive to accomplish basic goals of attracting and retaining quality employees.
The costs associated with group medical, disability, and term life benefits continue to increase, with no indication of a change in this trend, and as companies strive to be more efficient, employers are unable or unwilling to assume the ever-increasing employee benefit expense.
Critically important elements of sound personal benefit planning are often not addressed due to cost, product availability or both. Individually owned supplemental life and disability income, accident and cancer/specified disease protection are such elements. Additionally, participation in important employer sponsored programs, such as your 401(k), benefit from increased employee communication efforts.
Many group programs involve administrative reporting and governmental compliance (COBRA).
EMPLOYEE:
The typical employee population is poorly served by individual agents. Most employees are (1) not contacted, (2) reluctant to grant appointments, and (3) are uncomfortable with traditional insurance contact due to cost and methods.
Employer provided group benefits tend to treat all employees the same when; in fact, the need for supplemental life and disability benefits vary significantly.
According to the Response Analysis Institute (LIMRA Study), the voluntary supplemental benefits for which the employees indicated high levels of interest were supplemental permanent life options, long-term disability income, accident protection, cancer/specified disease protection, additional layers of family coverage, and plans to supplement group medical benefits.
Premium paying systems and insurance company guidelines restrict access to coverage (income requirements, invasive medical history questions, policy and premium minimums and pre-authorized check billing methods). Restrictive guidelines pre-select higher income employees and put participation hurdles in the path of the remaining 90% of all employees.
EMPLOYER DILEMMA:
BECAUSE OF THE PROBLEMS EXISTING IN THE
BENEFITS ENVIRONMENT, DOES THIS MEAN ALL
BENEFIT ENHANCEMENTS MUST STOP?
EMPLOYER:
Releases pressure on the "Employee Benefits Balloon." Coverage paid for by employees is coverage you won't be asked to provide.
Enhances your benefit package without additional employer cost!
Gain recognition for you willingness to share the advantages of your company's size and capacity with the employees.
Benefits go beyond employees to include spouses and children, which represent over 50% of all participants in VSB programs.
Delivers a clearly perceived benefit to employees, showing respect for them and their contribution to the success of the company, and establishes an effective and efficient "system" to deliver quality products and services they could not duplicate on an individual basis.
Freestanding, quality program with all administrative support performed by our office and the selected carrier.
The payroll deduction life, disability, accident, and cancer/specified disease packages are totally voluntary, contingent guaranteed and/or simplified issue, affordable, and offer portability or conversion options.
EMPLOYEE:
Voluntary Supplemental Benefits (VSB) address the most commonly expressed reasons as to why an individual or family member is not adequately insured
1) Access to quality products and information
2) Invasive medical questions and requirements
3) Invasion of private time
4) Premium, policy size and billing requirements
The VSB product is the "delivery system" not just the contract.
Easy to enter, easy to keep while employed, and easy to retain in the event of a change in employment status (new employer or retirement).
A BENEFIT ALTERNATIVE
VOLUNTARY SUPPLEMENTAL BENEFITS (VSB) PLANNING REPRESENTS A VIABLE SOLUTION:
- NO COST TO THE EMPLOYER
- VOLUNTARY
- FLEXIBLE
- LOW COST
- PAYROLL DEDUCTIBLE
- PORTABLE OR CONVERTIBLE
- EASE OF ISSUE
- LEVEL PREMIUMS
- IMMEDIATE COVERAGE
- Guraranteed Issue and Guaranteed to Issue
INTRODUCTION TO PLAN DESIGN AND CARRIER
SELECTION
Your company has a diverse group of employees spanning all age categories and all levels of need for supplemental benefits. You have young, single employees who may have concerns about affordable entry level programs guaranteeing their future insurability, while married employees with families, or single heads of households, may have a critical need for additional amounts of convenient, affordable, supplemental coverage. In the specialty area of voluntary supplemental benefits there are only a small number of carriers with the menu of quality products and services and the strong financial foundation needed to address the benefit requirements of your employees. Quality Carriers are clearly established in these areas and will be the provider of the voluntary supplemental benefit programs being proposed.
The Quality Carriers are strong in their service commitment and customer service dedication to you the client, as well as to your employees. As a result of your current affiliation with several select carriers, we recommend considering adding the following new offerings to the employees at your organization.
Today Short and Long-Term Disability, adequate Life coverage, and coverage against a catastrophic illness are the major requests from employees. You will note that as of today 1-2 males, and 1-3 females, gets cancer in the United States. In addition 68% of all costs of cancer treatment are OUT OF POCKET, and are not covered under a group health plan! Example:
Experimental Treatment is not covered under traditional group health plans!
Immunotherapy is not covered under any medical plan!
Meals, Lodging, and transportation to go to and from treatment are not covered!
Cost of a loved one to accompany the patient are not covered by medical plans!
ABOUT THE IMPLEMENTATION
VOLUNTARY SUPPLEMENTAL BENEFITS (VSB) planning differs from group benefit planning at the plan design and implementation level. VSB programs are based on individually owned products enrolled using individual interviews with each employee, during regular working hours, at the place of employment (includes shift work). Traditional group programs tend to cover all employees equally and are enrolled in groups supplemented by mail response.
We would provide low key highly trained, professional Enrollment Counselors to introduce Access Benefit Consultant programs to all eligible employees.
Participation in VSB programs is totally voluntary, but in order for our carriers to be able to make the substantial underwriting concessions in the areas of coverage amounts and options, we must see all eligible employees, and we would depend on your administrative assistance to accomplish this requirement.
Employees interested in participating would complete all forms required, during their individual interview. Those choosing not to participate would complete a form indicating the program options were explained and offered and that they have chosen not to participate at this time.
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