The Benefits of Working With An Employee Benefits Specialist

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We understand that when looking for employee benefits, you’re looking to do so cost-effectively. But it’s essential to make sure you work with an employee benefits specialist, no matter what the price tag is on your benefits package. 

We’ll explain how an employee benefits specialist differs from a generalist and why working with an employee benefits specialist is so important.

How does an employee benefits specialist differ from a generalist?

You may have approached financial advisors who can handle various tasks, such as selling you insurance products, investments, and employee benefits. However, this kind of financial advisor would be considered a generalist, and they lack in-depth knowledge of how complex employee benefits can be.

An employee benefits specialist is the opposite of a generalist. They are licensed advisors who have dedicated their practice to employee benefits. Employee benefits specialist prides themselves on understanding all the nuances associated with employee benefits. A specialist undergoes further training and acquires in-depth knowledge about employee benefits. 

Why is it essential to work with an employee benefits specialist?

Employee benefits plans are complex, and your business could be at risk if your employee benefits program isn’t administered correctly. As you know, employee benefits form a part of an employee’s compensation package. 

These are the benefits of working with an employee benefits specialist:

  • We help provide the best employee benefits suited for you and your business. 
  • We provide a smooth employee enrollment program so your employee saves time. 
  • We help your employees with questions about their employee benefits program. 
  • We educate your employees about how the benefits program works for them. 
  • We know how to deal with complicated benefits claims. 
  • We can explain how to reduce the risk of any liabilities associated with offering employee benefits programs—for example, offering mandatory enrollment versus voluntary enrollment in a benefits program. You can run into issues with voluntary enrollment if your enrollment level is below the required threshold.
  • We can explain how your benefits program can work for different employment situations, such as seasonal and contract workers.

The bottom line is that working with an employee benefits specialist means you’ll have access to a well-designed and administered benefits plan. 

How can I get started working with an employee benefits specialist?

Ready to make a move to working with an employee benefits specialist? We’re here to help you get the benefits program to attract and retain employees. Call us today to get started!

Video link: https://vimeo.com/770504723/50ba274537

Understanding Target Loss Ratio and Your Group Benefits Plan

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Group benefits can be intricate both in their establishment and administration. There are numerous details and considerations to be aware of when purchasing a group benefits plan, one of which is the target loss ratio (TLR).

Key Questions Addressed:

  • What is a target loss ratio?

  • How does my TLR influence my premiums upon policy renewal?

  • What steps should I take if I have concerns regarding my TLR?

Understanding Target Loss Ratio (TLR):
Here are the primary aspects you should understand about the target loss ratio (TLR):

  • It represents the expected profit point of your employee benefit plan’s comprehensive health and dental benefits.

  • TLR is the maximum dollar amount of claims paid by the insurance company, expressed as a percentage of your premium. For instance, if an insurance company pays $40 in claims for every $80 collected in premiums, the loss ratio stands at 50%.

  • The TLR is primarily determined by two factors: the number of members participating in the employee benefit plan and the annual premium paid.

  • The loss ratios can vary based on the type of insurance. For instance, the loss ratio for property insurance is typically lower than that for health insurance.

Does my TLR Affect My Premiums Upon Renewal?
Generally, your TLR won’t have a significant influence on your premiums when renewing. However, a notable increase or decrease in the number of staff members participating in your group benefits plan might cause some impact.

Other factors influencing your renewal premiums include:

  • A substantial amount of health and dental claims made.

  • Changes in the general demographics of your employees, such as aging.

  • An increase in the cost of services covered by your group benefits plan.

  • General inflation.

Addressing Concerns About TLR:
As someone overseeing a group benefits plan, your objective is to ensure optimal value for your premium expenditure.

If you’ve been collaborating with the same insurance provider for an extended period, it’s beneficial to explore other available options. Comparing offerings can help ascertain if the rate and TLR you’re being offered align with current market standards.

It’s essential to consider how varying TLRs might influence the long-term viability of your group benefits plan. If you’re keen on gaining deeper insights, consider reaching out to industry experts or consultants for guidance.

Protecting Key Talent using Group Benefits

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Building a Sustainable Future Together

As specialists in group benefits, the primary goal is to cultivate a sustainable future by collaborating closely with clients. The belief is that an informed and engaged workforce is pivotal for the success of any organization. A key component of this vision is the protection of the organization’s essential talent. This article delves into how group benefits can be instrumental in safeguarding an organization’s most treasured resource: its people.

The Importance of Essential Talent

Essential talent encompasses those employees who bring critical skills, expertise, and knowledge that propel an organization’s growth and success. These individuals form the core of any organization, ensuring its prosperity in the competitive market. Retaining such invaluable members is crucial as their absence can significantly affect business operations, productivity, and overall morale.

Challenges in Retaining Essential Talent

In the ever-evolving job market, holding onto essential talent can be a daunting task. Numerous factors, including enticing offers from rivals, opportunities for personal growth, work-life equilibrium, and employee well-being, can influence retention. For employers, recognizing and addressing these challenges is vital to safeguard top performers and sustain a competitive advantage.

The Significance of Group Benefits

Group benefits serve as a potent strategy in attracting and retaining essential talent. By presenting comprehensive and tailored benefits packages, organizations showcase their dedication to the well-being, security, and future of their employees. Here are some pivotal aspects of group benefits that aid in retaining essential talent:

  1. Health and Wellness Coverage: Offering comprehensive health and wellness benefits, such as medical, dental, and vision plans, not only fosters a healthy workforce but also signifies an organization’s commitment to overall employee well-being. Employees who feel this support are more inclined to stay loyal.

  2. Income Protection: Many group benefits packages encompass disability insurance, offering financial security for employees facing injuries or illnesses that hinder their work. Such provisions alleviate financial concerns during tough times, fostering a sense of stability and encouraging talent to remain with the organization.

  3. Retirement Planning: A meticulously crafted retirement plan appeals to essential talent. It signifies an organization’s concern for their future and dedication to ensuring their financial comfort during retirement. Contributing to such plans also strengthens the bond between employers and employees.

  4. Support for Work-Life Balance: Benefits that champion work-life balance, like flexible work schedules, paid leaves, and family leaves, reflect an organization’s understanding of the significance of a balanced life. Employees who sense this flexibility are more likely to remain devoted.

  5. Career Advancement: Benefits can also encompass professional development and training opportunities. Investing in employee growth not only sharpens their skills but also underlines an organization’s commitment to their long-term achievements.

Educational Approach and Teamwork

The role of group benefits specialists is to offer educational support and foster collaboration with clients. Through open dialogues about an organization’s aspirations and needs, it’s possible to design group benefits packages that resonate with specific demands. The collective goal is to nurture and protect essential talent, ensuring a sustainable future.

Protecting essential talent through group benefits is more than a strategic move; it embodies a dedication to employee welfare. By investing in the well-being, security, and future of employees, organizations not only boost loyalty and retention but also lay the foundation for a robust and sustainable future. The journey ahead is one of partnership, aiming for a flourishing and vibrant workforce.

Group Insurance vs Individual Life Insurance

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Group Insurance vs Individual Life Insurance

“I already have life insurance from work, so why do I need to get it personally?” or “Work has got me covered, I don’t need it.”

While it’s great to have group coverage from your employer or association, in most cases, people don’t understand that there are important differences when it comes to group life insurance vs. self owned life insurance.

Before counting on insurance from your group benefits plan, please take the time to understand the difference between group owned life insurance and personally owned life insurance. The key differences are ownership, premium, coverage, beneficiary and portability.

Ownership:

  • Self: You own and control the policy.

  • Group: The group owns and controls the policy.

Premium:

  • Self: Your premiums are guaranteed at policy issue and discounts are available based on your health.

  • Group: Premiums are not guaranteed and there are no discounts available based on your health. The rates provided are blended depending on your group.

Coverage:

  • Self: You choose based on your needs.

  • Group: In a group plan, the coverage is typically a multiple of your salary. If your coverage is through an association, then it’s usually a flat basic amount.

Beneficiary:

  • Self: You choose who your beneficiary is and they can choose how they want to use the insurance benefit.

  • Group: You choose who your beneficiary is and they can choose how they want to use the insurance benefit.

Portability:

  • Self: Your policy stays with you.

  • Group: Your policy is tied to your group and if you leave your employer or your association, you may need to reapply for insurance.

Talk to us, we can help you figure out what’s best for your situation.

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Insurance Planning for Business Owners

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For business owners, making sure your business is financially protected can be overwhelming. Business owners face a unique set of challenges when it comes to managing risk. Insurance can play an important role when it comes to reducing the financial impact on your business in the case of uncontrollable events such as disability, critical illness or loss of a key shareholder or employee.

This infographic addresses the importance of corporate insurance.

The 4 areas of  insurance a business owner should take care of are:

  • Health

  • Disability

  • Critical Illness

  • Life

Health: We are fortunate in Canada, where the healthcare system pays for basic healthcare services for Canadian citizens and permanent residents. However, not everything healthcare related is covered, in reality, 30% of our health costs* are paid for out of pocket or through private insurance such as prescription medication, dental, prescription glasses, physiotherapy, etc.

For business owners, offering employee health benefits make smart business sense because health benefits can form part of a compensation package and can help retain key employees and attract new talent.

For business owners that are looking to provide alternative health plans in a cost effective manner, you may want to consider a health spending account.

Disability: Most people spend money on protecting their home and car, but many overlook protecting their greatest asset: their ability to earn income. Unfortunately one in three people on average will be disabled for 90 days or more at least once before the age of 65.

Consider the financial impact this would have on your business if you, a key employee or shareholder were to suffer from an injury or illness. Disability insurance can provide a monthly income to help keep your business running.

Business overhead expense insurance can provide monthly reimbursement of expenses during total disability such as rent for commercial space, utilities, employee salaries and benefits, equipment leasing costs, accounting fees, insurance premiums for property and liability, etc.

Key person disability insurance can be used to provide monthly funds for the key employee while they’re disabled and protect the business from lost revenue while your business finds and trains an appropriate replacement.

Buy sell disability insurance can provide you with a lump sum payment if your business partner were to become totally disabled. These funds can be used to purchase the shares of the disabled partner, fund a buy sell agreement and reassure creditors and suppliers.

Critical Illness: For a lot of us, the idea of experiencing a critical illness such as a heart attack, stroke or cancer can seem unlikely, but almost 3 in 4 (73%) working Canadians know someone who experience a serious illness. Sadly, this can have serious consequences on you, your family and business, with Critical Illness insurance, it provides a lump sum payment so you can focus on your recovery.

Key person critical illness insurance can be used to provide funds to the company so it can supplement income during time away, cover debt repayment, salary for key employees or fixed overhead expenses.

Buy sell critical illness insurance can provide you with a lump sum payment if your business partner or shareholder were to suffer from a critical illness. These funds can be used to purchase the shares of the partner, fund a buy sell agreement and reassure creditors and suppliers.

Life: For a business owner, not only do your employees depend on you for financial support but your loved ones do too. Life insurance is important because it can protect your business and also be another form of investment for excess company funds.

Key person life insurance can be used to provide a lump sum payment to the company on death of the insured so it can keep the business going until you an appropriate replacement is found. It can also be used to retain loyal employees by supplying a retirement fund inside the insurance policy.

Buy sell life insurance can provide you with a lump sum payment if your business partner or shareholder were to pass away. These funds can be used to purchase the shares of the deceased partner, fund a buy sell agreement and reassure creditors and suppliers.

Loan coverage life insurance can help cover off any outstanding business loans and debts.

Reduce taxes & diversify your portfolio, often life insurance is viewed only as protection, however with permanent life insurance, there is an option to deposit excess company funds not needed for operations to provide for tax-free growth (within government limits)  to diversify your portfolio and reduce taxes on passive investments.

Talk to us about helping making sure you and your business are protected.

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