Why Partner with a Specialty Benefits Broker?

Non-Medical Case Study

        I.            Employee Benefit Brokers focus attention heavily on Health Insurance. Why?

a.     One of the highest budgetary items for Employer. It is a “must” priority.

b.      Highest revenue generating product of all employee benefits for Employee Benefit Broker.

      II.            This is problematic for non-health insurance benefits, which are often neglected year after year.

a.      STD/LTD/Life Renewals are often “rubber-stamped” given the smaller budget scale to health insurance, and limited Employee Benefit Broker shelf space.

                                          i.      This has a compounding effect on the cost of these benefits over the year.

b.      Benefits can become stagnant. Result:

                      i.    Ancillary benefit provisions are not modernized enough to meet today’s diverse workforce, do not include new creative benefit provisions, are not in alignment with the market, and are overpriced.

                                          ii.   Specialty Benefits such as Executive Benefits, Voluntary Benefits, and Long-Term Care benefits are last in line; designed poorly; or ignored completely.

     III.            Specialty Benefit Brokers complement the Employee Benefit Broker’s health insurance expertise.

a.      By focusing only on non-medical benefits – Specialty Benefits brokers are in best position to partner with Employee Benefit Brokers and Employers on STD, LTD, Life, Executive Benefits, and Worksite Benefit programs.

Non-Medical Case Study:

Ø The Employer had been with the same Employee Benefits Broker for 20+ years.

o   Employer also with the same Group LTD/Life Insurance company for 20+ years

 o   No rate decreases in at least several years, was a strong indicator to the Specialty Benefit Broker that LTD/Life plans had not been market evaluated.

 o   Antiquated Group LTD and Group Life plan designs were not in alignment with the market.

Ø A competing Employee Benefits Broker with the Employer, partnered with Navis Benefits Group to “test” the ancillary market and provide modernized solutions. Results:

 o   Demonstrated Employer had been paying too much for Group LTD and Group Life - 2x market!

 §  Provided 50% savings with same plan designs from current plans.

 o   Provided alternative plan designs with modernized provisions at 49% savings from current. Stronger benefit provisions with higher net benefits! 

§  Life: Doubled GI face amounts from 2x to 250k, to a 2x to 500k plan.

 §  LTD:

·        Increased benefit maximum from $10,000 to $12,500/month

·        Improved after tax/net benefit from 50.4% to 65%.

 o   Helped Employer fill benefit plan gaps with ancillary savings:

 §  Group STD: replaced fully insured program with enhanced self-insured.

 §  Executive Disability Insurance:

o   Ancillary savings helped fund a Supplemental Disability Insurance plan for highly compensated employees, to address gaps in Group LTD protection.

 § Voluntary Life: Introduced as a new benefit.