Voluntary Benefits Producers Can Conquer Employer Objections ...

by CustomerService@sbmedia.com (LONNIE GRAUL AND BILL BRESHEARS)

With constant media attention on gaps in health care coverage and the financial strain caused by major illnesses and accidents, you might take it for granted that human resources professionals and business owners understand the need for voluntary insurance benefits. But many do not. Distracted by other concerns, they are likely to raise objections that you may need to overcome quickly. Your response: I understand your concerns. With group products, employers need to play an active role in selecting and administering each plan. This includes selecting the products to be offered, setting up payroll deduction and paying premiums to the insurance company. It also includes administering the plan, which involves enrolling new hires, certifying eligibility for claims and maintaining billings. However, with individual voluntary products, employers have few responsibilities. Their primary role is to provide access to employees during lunchtime or breaks so they can learn about the additional coverage options, and elect to enroll. You may also choose to set up payroll deduction of premiums, but that is not always required. For example, your employees can authorize a deduction of a premium directly from a personal bank account, otherwise referred to as “employee non-payroll.” Another alternative is to use group-underwritten products, which typically are offered on a guaranteed-issue basis, covering all employees, including those with underlying health conditions. GI is attractive to employers wanting to ensure that all employees are eligible for some level of coverage. Typically, minimum participation is required for GI coverage. The standard level is 20% to 25% of the eligible population, depending on the size of the employer. Voluntary group products often used to complement core benefits include short-term disability, critical illness, and universal life. Your response: The good news is that group policies are issued to the employer in the state (known as the...

Read more...