10 things you benefit Advisor is reluctant to Tell You
# 1: "It just takes one week to be" certified "to sell insurance for your business"
Fact: In South Carolina, takes only the conclusion of a course of 40 hours for your company licensed to sell insurance in the group. My wife, once a week at tennis and what I can tell you with absolute certainty to play, not to teach it to play tennis, or for that matter, even tennis. This is an uncomfortable truth: that a lawyer without a degree, but most companiesThe use of employee benefits, the only objective advisor education is the conclusion of their 40-hour course of basic insurance. The fear of it is probably 100 times more money to spend on the advice of your advisor, a lawyer, doctor or another type of profession? Why? Why is a "good guy" is? Try its policy of selling your CEO when something is wrong.
Why rely on the investment of ten + 's of thousands of dollars for the advice of someoneIgnorant in their field?
As a company, what you can do is to ask your advisor what their specific field of training. You know what industry insiders to know and what to look for job titles, credentials, as CEBS (Certified Employee Benefits Specialist), REBCO (Registered Employee Benefit Advisor), Rhu (Registered Health Underwriter), CFP (Certified Financial Planner), CFA (Chartered Financial Analyst) and CHFC (CharteredFinancial adviser). If you do not see these credentials, you have tough questions to your advisor for themselves and whether they're qualified for your company to take such a major investment by business to help.
You should also know that bigger does not need when it comes to your benefits consultant. Often clients assume that the greatest educational experience of the consultant, when in reality we often find some of your work less qualified consultantsthese companies. Or just as bad, you have a highly qualified consultant for your business in the door and give the account to others, even to complete the sale is qualified. As a company you do some research to find out what is acceptable standards for your organization, make sure you get what you pay for.
no # 2: "Your benefits advisor can represent all insurance companies
Fact: You heard it here first, not all insurance benefit consultantAirlines. I know, I know - but your husband can not? Wrong! So why do not you ask, here are two main reasons:
First, not all licensed insurance carrier. Sometimes your licensing paperwork entangled in the politics of the insurance companies and the cause has never ordered, received, or in other times, there is some evidence (errors and omissions claims, etc.) for advisors who want to avoid trade.
According to insurance companies require volumesTo make your appointment. If the consultant does not sell enough insurance to a company under their license revoked. Think about it from the standpoint of the insurance company, you are 100 consultants in South Carolina for the product to sell, but I want 80% of the product is about 15 of them. The remaining 85 consultants, please use your bid to a lower estimate for the other airlines with which they are a lot of shops. Given this setting, becausedevote much energy to the other 85? She would not - and do not. Sometimes consultants will withdraw the license, an exclusive with the 15 who are loyal to their company.
Some of the unethical practices consultant as a result of the impossibility of representing all airlines. It is not uncommon for consultants to be caught in a lie itself, the carrier access to prevention.
Why does your advisor do? Answer: Who would ever know?
The solutionfor your company with your adviser, stated on the front end, the airline market your business, look for gaps. Keep a backup # 2 consultants help to bridge the gaps, if necessary, to ensure that each insurer the ability to compete is vital for the company.
NOTE: do not suggest that you can advertise as advisors to the insurance company. Think about the logic of this perspective of the insurance company: You get three differentRequests for proposals from a number of consultants on the same piece of business. You know, straight from the top of that there are at least three different consultants working on this project, because many insurers are involved? The chance that they are still part of that business are very low. Often this is enough to make a trap to get an airline to offer. Or worse, the three different consultants might work data "(this is the terminology of the field for amending the claims history, census, businessName, etc.) to get a better rate, with two other consultants. It's a big mess if this happens, and one rotten apple can spoil the whole batch. (We will in detail later in this report)
# 3: "Your performance does not represent consultant!"
Fact: The state of South Carolina (and many other countries), an insurance consultant / adviser "agents", not consultants. By definition, a consultant on behalf of the customer and the company is an agent of an insurance company.In South Carolina, the State Department of Insurance no license consultants, agents only.
One might ask: "Why is it so important is because the state created in this way?". It is very important, especially as we now know. What does it mean if your advisor does not represent you - meaning that they represent can not! Your advisor has the duty of insurers, they followed, and this could lead to your disadvantage.As a customer, this means that I ask you difficult questions with your advisor and understand that this is not a perfect relationship, its wholly represent your interests. You need them to ensure that you always have the best possible deal for your business.
# 4: "I never said that the commissions are negotiable!
Done right: This is not automatically determined by the insurance company, but are negotiable. The reason you never knew because theyIt was never in your interest to consultants say. Why should invite them to negotiate what they paid? The only exception is group health insurance for customers with fewer than 50 people registered (and this is just the case with some carriers, not all).
So what's the solution? Make sure you get what you pay for. We're not saying that consultants are not a valuable service to offer, they do. However, it should pay only for the value you receive.Your adviser can help employees to communicate their ideas on an ongoing basis, to help you move forward? Imagine what kind of demand, and along with your advisor how they can help. Most companies only 10% or less of their advisors to determine skills - what you're willing to pay, and then maintain a similar value.
# 5: "The benefits adviser has not told all their conflicts ofInterest
The fact is that your adviser your business with only a handful of different insurance companies, and if they are paid to do much more than usual. This is because the General Agency (GA agreements) and ignore the similarities. These agreements are your consultant, more money, when sales of business lines to carriers. This in itself is not bad - in fact, they can earn revenue for the operation of its consultant, and addmany additional value added services for your company shot. However, if misused, can have an effect on the calculation of your company money.
Some of deceptive tactics in the vicinity of the issue of conflict of interest. It is not uncommon to hear a company say they "do not want XYZ insurers, which gives you only see problems." The question must be asked: "Why?" Who has had problems and I can talk to themproblems? . "Unfortunately, many companies do not ask such difficult questions, and right on the establishment of contracts that are not smuggled in their interest.
A good start for your business consultant to your request of the carrier with whom receive a bonus last year published. With this knowledge, at least give you a starting point. It is also important to question the performance of your advisor, look for red flags (questions to assessdefensive form would be an example red flag) to be. Another red flag is if they are totally incapable, like the answer. The reason could be a problem, it is likely that the administration has not said where it there is interest, but need to sell the airline to "keep Their Job."
# 6: "I told you not to buy Insurance Much"
Fact: You will never feel the car sales man tell youexpensive to buy a car, but probably never heard of your employee benefit consultants tell you that you just bought too much insurance. Did you know that some things need not be insured? You heard it here first!
Remember, insurance is intended for the things you have to pay - and buy when it happens would cause serious financial burden. It is a statistical law as the law of large numbers, to be understood by a companyPurchasing insurance. The impact of this law is that more people are covered by the plan (whether medical, dental, life insurance, disability, etc.), the less likely you are to "full coverage" 's make payment of compensation for these plans.
What you want is the point at which your loan will be statistically valid to say that a clever term for it is predictable. In other words predict, as you can, support your right to aa certain degree, because you pay an insurance company do for you? The trick is to know what the employer is large enough for each line of insurance. This will depend on each company by the structure of your pension plan (enrollment, employee contributions of members, demographics, etc.), but the general rule that you start thinking about the various funding package deals for medical insurance, if you 100 employees. Many companies think at this point"Self" and now "Run to the hills, but stay with us for one minute, so we can explain in detail. The financing of an insurance product is a continuum.
As "fully insured" or "fully-insured themselves" are just two points on the continuum of funding. There are many, many others along the way. If an employer with fewer than 100 employees are covered by your plan starts at left, and start down the stairs as she is growing. A well trained, experienced consultantscan help you choose where the most sense for your business does, and certainly not to waste the money in the meantime.
With dental insurance and vision, there is no reason to purchase insurance if you have 100 employees - have never hard to tell from a catastrophic crown? No, why buy insurance against damage that are not predictable and catastrophic. short-term disability fund is also a simple creative cover. Please Use extreme caution whenconsider alternative funding for long-term disability and life insurance. These plans can be linked to a substantial debt to be particularly concerned with how to organize this.
# 7: "Your Benefits Advisor offers you the best price!"
Fact: Did you know that the price to go deeper? You've probably seen as the loss of an adviser or insurer about your company - is immediately confronted by a friend. Then you're yourQ: Why should I threaten my business partners, they get to do their work? "This is a good and fair question, why did you do?
And make good use of the 80% / 20% rule here, 20% of your efforts in this area come from 80% of the value of your business. So, what is 20%? Put a little 'push your advisers and insurers. Make sure you know they are serious and fire, if you need a good work for your business. By the way, it is difficultIf your adviser is your brother-in-law. I've heard, makes an awkward Thanksgiving dinner.
Another thing that is often forgotten that your insurance should be considered as a long term. Ask yourself: "Our company continues to offer this benefit in five years?" If the answer is yes, then you should consider the long-term effects, such as the price is calculated. Eventually, the demand for insurance programs to determine costs. TheInvolvement of these insurance programs for you is that if your price is the price at the end was fished. For this reason, many consultants will have a higher percentage of the initial premium market, knowing that a long-term interest rate is accurate and remains for stability in your plans as possible.
Finally, sometimes you can not get a better price, because your adviser is lazy and sometimes it's to your advantage. Make conversation with your adviser can trust and feelYou're not in the bucket first.
The other thing to remember is not to cry wolf. If you overboard, nobody will do business with you because there are too many other companies are not so much demand is there. "Well," friendly-intrusive. Challenge your adviser to help you get a good deal, but if you look at his orange juice, not turn them in and out, go to the pulp. Save your energy for the other nine items on the list.
# 8: "Some Benefits Advisor"Your job" as needed to get your business "
The fact is: "Work your data" refers to the change of subscriber specific data of your company gets a better offer than any other insurance company. We mentioned earlier and this will be fixed in this section. Our experience is that most companies are shocked and dismayed when she heard this revelation. And unfortunately true - there are some people who you absolutely nothingYour business. Examples range from the change in the count (change in the birth of an employee to show the younger population), or a change in your casualties. Other times takes the form of a "practical refusal" critical information they know to be true for your business.
The consequences for your business can do much, but here are two warning signs that this only happened to you:
The first change right price before you sign the papers to go - The reasonThe price will be amended so that, once the consultant undertaking was, he knew the truth, the insurance company to communicate before implementation of the measure. Your advisor then calls it a "bad insurance," and says it is not true that everything can be done. Now you're out of time, and must go. Some other item gets your attention, and not explore all the details on why this happens. Another disappointed customer!
According to their claims are rejected - thisThe nightmare scenario of a large volume of claims rejected. Your employee has an important right doctor, dies or is disabled, and it shows no insurance to cover the claim. The employee responded by saying: "Now I do not care - you told me that I had thought that this reference, so someone had better pay me or I will cause." Of course you can sue the consultant, their errors and omissions insurance should pay for the application (if you are unsure about the quality of financial securityInstitution. This is important because errors and omissions insurers often with a "financial rating cap A 'or better. If you have a' Plan B ', or go below the carrier, you have no protection against this type of exposure have).
So what can you do as a company? Better an ounce of prevention than a pound of cure. Only one supervisor, if they and their companies have demonstrated a higher ethical commitment in time. Actions speak louder than words, ifit comes to this title. Ask around in the market, since this type of action is one way to the public. It is often not an isolated event, but a consistent pattern and type of activity. See the "special deal", as they, in fact, the type of "special", not so good for business.
# 9: "Your benefits advisor can not control costs in the health sector"
Fact: The cost will be what will be! Any questions, complaints, requests and determine yourwill cost. A consultant has said that reducing health care costs? Usually what is meant by this statement that a lower rate will bring. This is significantly different from control costs for health care (see # 7 above on the stability of rates). Think about it logically, if an employee has a bad car accident, as you may be affected by the consultant. Employers often forget that their claims in the health sector to determine what form of paymentAwards.
One may wonder, what wellness programs. Yes, you can use these programs at least help control costs long-term health. However, we would say that this is rarely a function of the consultant. The bulk of the credit for welfare programs should be given to employers, not the consultants. With this said, there are about 5% of the advisers who really help you in this way, but the trick is to learn, is one of the 20th
As alreadypreviously, the consultant, most have no money, not the necessary training to e. understanding of the health care system I do not know if CPT DRG analysis analysis of a code review than the SPD. You just do not know what I do not know.
What can you do? See your free white paper, how to choose an Employee Benefit Adviser. Better yet, download our expertise in Employee Benefit Advisor test and see if you get what you'repaid.
# 10: "Your adviser will tell you the advantage of having a special product only by an insurance company"
Fact: In reality it is extremely rare. The truth is that unfortunately this is often only a bait and switch technique. An adviser or a name and they say they "special insurance product only Medical Association" and they want to talk about them. The company is obviously desperate because their rising insurance costs and increasing for years and have goneTo save some money. Consultants often tell them you have a "Special Pool". Think about this, but in reality - are already in a pool. For example, if you have a big insurance companies in your state, you could probably have the largest pool of personnel for this condition (based on their market share). 99% of the time, these are just a marketing gag, are in port so they can sell, what product the cheapest,regardless of the airline. What is disgusting about this approach is that the club is often the spokesperson for her, and when the sale of "special products", the club are successful, a football is back.
The bottom line is that companies should be smart and do a lot of questions. Feel free to call the insurance company and ask them about the product on offer. You'll probably find that what is sold is a unique design project (eg insuranceCarrier can tell you only a $ 350 deductible plan to buy XYZ Organization. However, you $ 300 or $ 400 deductible for everyone. That's not really happening the sniff test, a "Special Product Association).
In brief:
It is a sin, but the reality is that smart companies choose to work. When setting up your employee benefit consultants to spend time with them at least (if not more) as you would to renta new employee. The fact is that will help you spend more money. Be careful and clever - you get what you pay for!