Saturday, March 13, 2010

Group Insurance Benefits

Lots of people we talk to have searched for group insurance benefits on the Internet. While it is fine to do research on the Internet, buying insurance on line can end up costing you more in time, money and bad coverage.

The best thing you can do if you are in the market for the right coverage for you and your employees, is to consult an insurance broker who specializes in group insurance. An experienced broker will interview you to determine your needs and then present you with plan options that best fit those needs at the lowest possible cost.

For your own peace of mind, get an idea of the types of coverage you may want to offer your employees. Conducting an employee survey to find out what benefit plans and issues interest them the most can be very helpful.

For instance, ask them to rank the following benefits in order of importance.

Medical Care – HMO
Medical Care – HSA
Medical Care – PPO
Dental Care
Chiropractic Care
Life Insurance
Long Term Disability Income Replacement
Retirement/401K
Section 125 Cafeteria Plans
Vision Care

Try to get an idea of how frequently they and/or their dependents would use each of these benefits.

Some employees may be interested in additional coverage. So, ask them if you were to offer them voluntary/employee paid benefits at low cost and group rates through payroll deduction, which of the following benefits would they be interested in?

Accident Coverage
Life Insurance
Critical Illness
Long Term Care
Cancer Coverage
Long Term Disability
Hospital Income
Group Legal Plan


After reviewing the answers to these questions, you should have a better concept of the types of benefits you want to offer. Now, it is time to consult the expert.

Not all brokers have the same experience or style. Ask other business owners for referrals if they have found a good broker. You want a broker that asks you the right questions to get an accurate group health profile so they can design the right [plans for your group.

Information they ask should include:

Has anyone been advised to have surgery in the last six months, or anticipate hospitalization for any other reason?

Has anyone been treated for a serious illness, been hospitalized or had surgery in the past 5 years (e.g. AIDS, Cancer, Cardiovascular Disease, Juvenile Diabetes, Mental Illness, Renal Disease, Substance Abuse)?

Are any employees or their dependents pregnant?

Has anyone had a medical expense of $5,000 or more in the past 12 months?

Has any employee missed 10 or more consecutive days of work in the past 12 months due to illness or injury?

Are there any employees who are not actively at work performing his or her duties full time due to illness or injury?

Are all covered employees listed on the employer's DE6 (quarterly state tax report)?

Are there any current or former employees or dependents currently on medical continuation (COBRA, State Continuation, and Extended Benefits)?

Is anyone apt to have a continuing expense from an existing mental or physical disorder?

All of the information the broker gathers will be used to design a personalized plan that best suits the needs of you and your employees. Having all of this information influences the design of your perfect plan.

Consulting an expert will save you time and money and will help you to offer the best group insurance benefits to your employees.

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