Stripping Down Group Dental

Group Dental: a complex topic that may seem simple on the surface, but if you truly want to make an employer and employees happy, there’s more to it than rates.

Did you know that next to medical benefits, dental is the next sought after benefit?

It’s our opinion that it is better to offer it on a voluntary basis than not at all.  This is one of the many benefits that can be deducted before taxes and still help the employer save money.

So why is dental not as simple as we may think? Let’s delve a bit into the inner workings:

• Maximum Annual Benefits

More often than not, the standard maximum annual benefit is usually $1,000, but are you aware there are options for $1,500, $2,000, and depending on the group size, even higher?

Tip: Some companies won’t count the preventative dollars used towards that maximum, which can help increase the actual benefit by several hundred dollars.

• Deductibles

Ranging anywhere from $0 to $250 per person and up to three times per family,  a carrier may often increase the family cap from 2 times to 3 times to be a bit more competitive in the marketplace.

Tip: Lifetime deductibles are an option to encourage a group to stay with a carrier.  Once the lifetime deductible has been met per person and family member, no further deductibles are required.

• How are the benefits paid?

It’s important to analyze where Endodontics and Periodontics are paid. Together with surgery and anesthesia, these are means to get the pricing down (and lowering or raising benefits to the employees).

Tip: This is where a rate is not simply a rate and you are really doing your client a disservice if that’s all you are reviewing. 

• What about networks & how they function?

Closed network HMO’s only allow a member (unless an emergency) to receive benefits from a listed provider, and referrals are required for specialist services to be covered. The same is true with some carriers when they quote a MAC (maximum allowable charge) plan or a DHMO (Dental HMO).

Tip: Comparing a carrier that quoted a MAC plan versus a UCR (usual, customary, and reasonable) would be a mistake.  Let’s not forget that many individuals aren’t so lax to change dentists and if forced to do so may resent the employer and insurance carrier in the end.

• It’s all in the details!

Before you quote your next dental plan, make certain to take these variables into account.  If this is a daunting task (which it can be if you are truly quoting the dozen or so carriers that are out there), please feel free to allow us to do the work for you.  We will make the process painless and the sale will be easier than ever before.

We look forward to working with you on your ancillary group cases this year!  Thank you for your loyalty and let us know what more we can do to help you in your group and disability solutions.

The Insurance Specialties, Inc. Team

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Give Them What They Want

They’ll be jumping for joy…

As a couple of the most desired benefits you’d think more companies would offer dental and vision insurance to their employees. So why don’t they? Probably because you’re not talking about it!!

There’s no denying that taking care of oral and eye health is essential for overall health; problems in the eyes and mouth can cause or be indicators of problems in the rest of the body.

Fun facts:

• About eighty percent of the U.S. population has some form of periodontal gum disease (yikes)
• Many systemic diseases (including hypertension and prediabetes) are visible simply by looking into the eye, even before symptoms arise (who knew!?)

When you’re jumping into the ring, keep in mind there are more carriers than meet the eye (no pun intended), and we use our same methods of analysis and customization as all other ancillary lines.

One of the many things you can always count on from us is to get the 

BEST BENEFITS for the LOWEST COSTS, 

to both employer AND employee.

And just like all other group ancillary benefits the employer/business owner has the option to:

• Pay the premiums in full
• Share the cost with the employee
• Offer the benefit as voluntary to either supplement employer paid benefits or just as a means to offer something to the employees and their families.

Don’t forget, a group can be as small as 2 employees!

I think it’s safe to say that all employers and business owners dream of having healthy and happy employees, and the more benefits they’re offering, the better.  Let’s help them make that dream come true; they’ll be jumping for joy!

The Talk of The Town

Have you heard about the integral role Voluntary Benefits will be playing in the future of employee benefits???  If you are a group producer, we are certain you have!

For some companies, many of these benefits will be offered in lieu of the employer paying due to cost of providing health benefits to employees.  For others, it is a mechanism to enhance the value of being an employee of that business.

So what is being offered in today’s Voluntary (or Buy-Up) marketplace? It’s not just your group life, short or long-term disability, accident insurance, vision, or dental.  Today, the offerings go on to such plans as whole life, universal life, critical illness, legal shield and/or identity theft, concierge services, pet insurance, homeowners, and the like!  There appears to be no limit to what is being offered depending on the industry and company location.

Other changes to consider are the manner in which these benefits are offered.  We still have the traditional face-to-face group meetings followed by the one-on-one.  However, if there is a large group, that process is far too cumbersome and time consuming; that said, some insurers are offering to do this for you with no loss of compensation.

As a rule, if the case is large enough, you will want to offer a specialty web portal for the company that includes training pieces to help the employee (and their family) make the proper voluntary benefit selection.  At the very least, you will want online or telephonic enrollment.  The latter’s’ benefit is that there is a person that can help the employee to better understand what they have available.

Taking this to the next level are carriers that provide these benefits not on a group chassis but on an individual (and portable) platform.  Do not get lost in the analysis and try not to over complicate the process.  Even if you have an enrollment company assist you, it is better to let a group of professional enrollers take on the case then to sit and learn on the job.  The overall enrollment will increase and your client will be far happier with the results.

From the less expensive group basis to the individual platform, we can help you and your clients make the best-informed decision.  Please let us know how we can together, help your clients tailor and enhance their benefit offerings.

It is our advanced knowledge and understanding that drives us forward.  Let us share our expertise with you!

Be Their Hero!

Having spent the first half of this year on Disability products in both the personal and business realm, it’s safe to say we are passionate about income and business protection!

For those that are business owners and/or selling to the business community, let’s now talk Group Short and Long Term Disability.

Why Group STD and LTD?

• Providing these benefits helps employers protect a portion of their employees’ income (and their own income) should they become too sick or injured to work.
• Offering benefits sets a business apart from other employers; it makes the company more attractive to quality talent, aids in employee retention rates, and are a way of saying thank you … we value you!
• The plans are Guaranteed Issue regardless of employees’ health and group size!
• Employers can include themselves in the plan to supplement their own individual protection.
• Plans can be customized to be 100% Employer paid, 100% Employee paid (Voluntary), or a combination of both.
• The portion a business pays for this insurance is considered a business expense and is tax-deductible.

Our Process

• All we need is a census that includes gender, salary, occupation, and home zip code of each employee.
• If the group has a plan in place, we need the current benefit summary in order to match benefits at a lower cost, or provide a better plan at the same cost.
• We send a request for proposal (RFP) to as many of the top carriers in the country as possible.
• We analyze all quotes based on cost, volume, and definitions (the latter being the keystone of our agency).
• We create an easy to follow spreadsheet (including notes for the broker or employer allowing us to make the best and most knowledgeable recommendations).
• When necessary we will go back to the carriers and negotiate better plans and/or rates to best fit the client’s needs.

As experts in the field of employee benefits and disability insurance we can support you whether you are a broker or employer.  If you are an employee and your company doesn’t offer benefits, we will be happy to start the conversation!

At Insurance Specialties Inc., we are here to help you design and implement the most comprehensive and competitive plan(s) based on the carrier strength, occupation, health, and goal(s) of your client.

 

It is our advanced knowledge and understanding that drives us forward.  Let us share our expertise with you!

Who doesn’t love a guarantee?: May Broker Newsletter

Who loves exciting developments in the income protection arena? We do! And this month we’re talking about Guaranteed Standard Issue (GSI).

As many of you may already know, a few top tier carriers offer high quality disability insurance.  Most have the same requirements to obtain a Guaranteed Standard Offer.

The Purpose of GSI: This form of individual plan is designed to be employer paid (or mandatory contributory) and supplement the group offering.  Often group plans are capped and discriminate against the more highly compensated.  This offering makes it easy to obtain, WITHOUT UNDERWRITING (I’m sure many of you have seen where the president or a member of the “C” suite is often the uninsurable/unhealthy one), while still providing all of the benefits of an individual plan.

What does this mean?

•  An own-occupation definition of disability (this plan is for executives or those earning at least $75,000 or $100,000 depending on the carrier).
• A true residual is part of the plan.
• COLA (Cost of Living Increase) options are available.
• The policy is usually non-cancellable (some offer this as a rider).

Are you an ancillary lines group producer? If so, this product is an excellent way to cement your client relationships and help the executives secure their financial plan.

Are you working outside of the insurance field? If you are an employer, business owner, or member of a group, feel free to contact us for more detailed information and to see if your group qualifies.

As we have said in the past, we strive to make this process easy and understandable.  If and when you have a potential case we are more than happy to provide you with everything you need. Let us know how we can serve you!

From My Perspective

May is considered Disability Insurance Awareness Month, but every month should be.

If you told me a year ago I’d fall in love with Disability Insurance I most likely would have laughed and rolled my eyes. Weirder things have happened but I’ve been struck by cupid’s arrow! Why am I so passionate about Income Protection? Thankfully I have never suffered from an injury or illness that kept me out of work; however, I have lived for a lengthy period of time without an income stream.  I can attest to the stress and anxiety that can accompany the inability to pay your bills and basic life expenses.  In addition, I have watched friends and families close to me struggle both emotionally and financially when either they,  a parent, or spouse had breast cancer, a stroke, a heart attack, became paralyzed from spinal nerve damage,  tore a rotator cuff, or endured a knee replacement to name a few. These disabilities and illnesses, all of them out of the blue, either temporarily or permanently took away the ability to earn an income.  Some suffered a tremendous financial loss without an income protection plan in place and some were able to focus solely on healing as they had a disability insurance policy.

Who is to say if I ever would have landed in the insurance business had it not been for growing up in it and joining forces in my family’s business, but here I am, destined to share knowledge and help others.   As we all know, insurance is all about protecting the “what-ifs.” We insure our cars, homes, and phones, but why not our life, income, and health?  The disconnect is evident and I am here to say, even as an industry professional and someone who believes in insurance, I totally get where the “non-believers” are coming from .

Personally, I embody the attitude of looking on the bright side and like most other Millennials and Gen-Xers, no matter what I have seen or heard about, I live with an attitude of, “that will never happen to me.” I take very good care of my mind, body, soul, and spirit; I eat nutritious and unprocessed foods, I do yoga, meditate, steer clear of drama, focus on what’s real, and regularly “check in” with myself.  I rarely get sick and to take it a step further I usually go for the homeopathic and spiritual remedy before taking medications or consulting a medical professional.   At the same time I cannot disregard the fact that really random and unexpected things happen in this world!   The more stories I hear from friends, strangers, clients, other industry professionals, and my parents (aka my business partners who have been both specializing in disability insurance for over 30 years), and the more in depth I get in on this topic, the more I have wondered, “if given the opportunity to protect your income in the event something happens to you, why wouldn’t you??”

There are so many facts, figures, numbers, and statistics that ultimately make the argument for income protection a no brainer, and while I feel it is important to share them all with you, I would rather throw out the what I consider to be the essentials (throw with love, of course):

• A disability is an illness or injury that keeps you out of work for an extended period of time
• Some of the most common causes for disability claims that you may be unaware of are cancer, stroke, pregnancy, depression, anxiety, heart attack, diabetes, back pain, arthritis, joint & musculoskelatal disorders, lyme disease, broken bones, and autoimmune disease
• Disability Insurance replaces part of your salary if you’re unable to work due to the illness or injury
• Worker’s comp does not cover illnesses or injuries unless they are caused on the job
  • 95% of disabling injuries and illnesses are not work related
• Social security will only cover you if you are totally disabled and unable to perform any job
  • Before you can even file a claim you must have been totally disabled for at least 5 months
  • 65% of SSDI claims are denied
  • It could take up to 2 years to receive a benefit
  • The average benefit paid is around $1,000 per month (would that cover your expenses?)
• If you are fortunate enough to have disability coverage from your employer you absolutely must review what you have with a licensed disability insurance specialist!
  • You may not have the coverage you think you have
  • If your employer pays for your coverage, you will be taxed on the benefit you receive (you already will receive only a percentage of your paycheck, usually 60%, if you then subtract taxes you may need additional coverage to cover the gap)
  • Depending on the stage of your career, unless you plan on staying at your company until retirement, you CANNOT take your disability insurance with you if you leave
  • After a financial review, any great agent will be more than pleased if they find you have all the coverage you need
  • If your employer doesn’t offer disability benefits, I would be happy to discuss various options with them
• If you were smart enough to put an income protection plan in place at the beginning of your career, chances are your income has increased just as your financial responsibilities have. You may need more coverage, but as I mentioned above, any great agent will be excited to review your policy and find you are truly taken care of!
• If you are at the beginning stages of your career (or have begun a new career), chances are you are not yet earning the income you expect in the future…plans can be customized with options as your income grows and needs change (without having to prove future medical insurability)
• If you are in a profession where you have invested a great deal of time and money such as law or medicine, wouldn’t want to protect that investment?
• The younger and healthier you are, the lower the cost of disability insurance (same goes for life insurance)
• If you own a business you are responsible for more than just yourself!
• If you have a family you are responsible for more than just yourself!
• If you live with a significant other and share expenses you are responsible for more than just yourself!
• If you are single, you ARE responsible for yourself!
• You might want it, but not everyone can get disability insurance!!
  • Not only do you need the income and income stability, you also have to be in fairly good health (keep in mind if you do have an unfavorable medical history, we have expertise with hard to place cases).
  • Make sure you work with a broker that understands the underwriting requirements with different companies.

If we think we have control over our lives we are fooling ourselves! While there are actions we can take to minimize the risk of needing any insurance, doesn’t it make sense to protect that which we cannot predict?

We are here to help and answer questions. We have the knowledge and ability to tailor plans to your needs, desires, and financial capabilities. We work with many of the strongest insurance companies in the industry, and as a brokerage agency we only recommend carriers with the best plans for your occupation, health, and goals.  We are licensed in numerous states and can assist you no matter where you live.

While I will not negate the fact that I know my stuff, it is comforting to know that I have access to individuals with a deep understanding that can only come with decades of practice.

 

 

Protecting Partners and Saving Business Relationships: Broker Newsletter

The Role of Disability in the Buy-Sell Agreement

In today’s article, we want to spend a few minutes discussing an often overlooked plan for your business clients … a Disability Buy-Out Policy.  We will not apologize for the plethora of information, its dry nature, and the newsletter’s length; we know of no other way to discuss an involved product such as this!

Similar in nature to life insurance sold for buy-sell agreements, this plan exists to cover a need.  Instead of death, the trigger is a disability.  These plans have long elimination periods, 365 days, 540 days, or 730 days depending on the carrier. Unlike triggering a life insurance benefit, clients may be able to return to work so you don’t want the benefit started too soon. Besides, what partner or shareholder would not want to return to their business?

Valuation

We won’t get into valuation methodologies (which are important to help determine the partner/shareholder value) as they are too intricate.  However, the amount of coverage allowed for each partner/shareholder is predicated on his or her ownership percentage.

Who and how many to cover?

As a rule, you do not have insurers willing to cover more than 4 or 5 partners as it would prove too costly.  In addition, the principals can more easily fill in if another partner/shareholder becomes disabled.  According to Principal Financial, “A buy-sell agreement is not required in order to purchase DBO insurance, but one must be in place at the time of a disability claim.  In the state of New York, the buy-sell agreement must be in place before purchasing DBO insurance”.

How is it purchased?

There are two methods of paying for the coverage: entity purchase and cross purchase.  Once again, just like life insurance, you select the one that best fits the needs of the client.  Too many policies are cumbersome (and expensive), so often with 3 or more partners/shareholders, the entity purchase will make the most sense.

How does the policy pay out?

The payout on these policies will rely on the total amount at risk.  With multi-million dollar agreements, the benefit is normally paid as a partial lump-sum followed by monthly installments.  They can also pay out in monthly installments only with no lump sum.  Lastly, smaller amounts ($1 Million and less) can be paid in a lump-sum, which is the cleanest and easiest.  No matter, a buy-sell agreement will be required at time of claim to determine the valuation method used, the benefit amount (percent of business), and the validity of the claim.

How can we help?

If you need assistance in forming a plan for your business clients, we are here to help.  We have built a successful track record in developing buy-sell agreements, that when combined with new individual disability policies, have generated substantial premium discounts for the client.

Please reach out to us so we can make your process easier!

800.358.8844

info@insurance-specialties.com

http://www.insurance-specialties.com

http://www.facebook.com/insurancespecialtiesinc

https://twitter.com/isi_psi

When the Success of Your Business Lies in Someone Else’s Hands: Broker Newsletter

If you work with business clients, you know that many have at least one “key employee.” These individuals provide a vital service, fill an important role, and/or help generate income for the business. In turn, if that employee were to become ill or disabled, it would be difficult for the owner(s) to fill the shoes or find a replacement.

Think of:

• A manufacturing company that has a key foreman or machinist, whose loss would be detrimental to the company,
• A key salesperson whose relationships with certain accounts are vital to the survival of the business,
• A small sales team whose administrator provides all of the operational, client management, and back-end support,
• A CFO, CIO, or other C-Suite executive of a larger corporation.

The loss or absence of any of these key employees due to a disability or illness, even in the short term, could result in a financial loss to the business!

In order to help protect the business, Key Person Disability Insurance exists to provide the financial resources to keep the business moving and find a replacement if necessary.

• Key Person Insurance can provide the means to Recruit, Hire, and Train a replacement, and/or offset a portion of the financial loss.
• The employer is the Applicant, Owner, Payor, and Beneficiary of the policy, provided that the employee agrees to be insured.
• Premiums are not deductible to the company; however, the benefits are tax free.

At Insurance Specialties Inc., we are here to help you design and implement the most comprehensive and competitive plan based on the carrier strength, occupation, health, and goal of your client.

It is our advanced knowledge and understanding that drives us forward.  Let us share our expertise with you! 

800.358.8844

info@insurance-specialties.com

http://www.insurance-specialties.com

http://www.facebook.com/insurancespecialtiesinc

https://twitter.com/isi_psi

They Work Hard for the Money…So Help Them Protect It: Broker Newsletter

Disability Insurance: It’s as important to the living (and their families) as life insurance is to the beneficiaries; it’s not just for the societal elite.

• For the white collar/executive market, we have companies that are extremely competitive and offer a true own-occupation with a residual/return to work benefit.  Though not inexpensive, there is a great value to these well-defined and constructed policies.

• Contractors, roofers, trades people, police and fire department personnel, and truck drivers, to name a few, fit this blue-gray collar category.  Whether they own their own businesses or are employees, they all need disability coverage!  We work with multiple carriers and will share numerous approaches to help these clients.

• Don’t forget about the availability of executive carve-out and salary continuation plans!  Many highly compensated executives are actually discriminated against in their company’s group plan.  (Stay tuned, we will share more on the solutions to this concept in a later issue.)

At Insurance Specialties Inc., we are here to help you design and implement the most comprehensive and competitive plan based on the carrier strength, occupation, health, and goal of your client.

It is our advanced knowledge and understanding that drives us forward.  Let us share our expertise with you! 

800.358.8844

info@insurance-specialties.com

http://www.insurance-specialties.com

http://www.facebook.com/insurancespecialtiesinc

https://twitter.com/isi_psi

Instant Disability Quote

Business Owners and Disability…Keeping the Business Running: Broker Newsletter

Do you have business clients that:

• Own a business?
•  Are partners with 1 to 5 others?
• Are members of a small corporation with less than 10 principals?

Business overhead is there to protect the business in the event the owner, partner, or working shareholder becomes disabled.  As agents and brokers, it is our responsibility to make certain we provide our business clients with Business Overhead Expense Insurance.

BOE will pay the expenses of the business in the event of a disability and is a 100% tax deductible expense to the business! Here are a few covered expenses: Rent Utilities Employee Salaries Telephone Loan Payments Professional Services (Legal/Accounting) Professional Replacement Advertising For a few pennies on the dollar, your business client can protect all that he/she has built. In the event he/she is unable to return to work, the business can be sold as a going concern.

At Insurance Specialties Inc., we are here to help you design and implement the most comprehensive and competitive plan based on the carrier strength, occupation, health, and goal of your client.

It is our advanced knowledge and understanding that drives us forward.  Let us share our expertise with you! 

800.358.8844

info@insurance-specialties.com

http://www.insurance-specialties.com

http://www.facebook.com/insurancespecialtiesinc

https://twitter.com/isi_psi