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Primary Objectives of Group Benefits
- Healthier work force
- Higher productivity
- Lower absenteeism
- Positive attitude
- Attract quality employees
- A competitive advantage
- Seen as an employment perk
- No longer seen as an optional for employers
- Retain quality employees
- Reduced employee turn-over
- Higher productivity achieved with long-term experienced employees
- Lower training costs
- Lower management cost
Secondary Objectives
- Create a positive work environment
- Give employees peace of mind
- Be seen as a responsible employer
- Maintain a cost effective benefit plan
- Eliminate potential company exposure
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Industry Terminology
Agent
A person who is authorized to represent either an insured or an insurer when dealing with insurance matters.
Application
A form on which the prospective insured states the facts requested by the insurance company and on the basis of which the insurance company decides whether or not to accept the risk, modify the coverage offered, or decline the risk.
Beneficiary
The person(s) named in the policy to receive the life insurance proceeds upon the death of the insured.
Cancellation
Termination of insurance coverage during the policy period by the voluntary act of the insurance company or the insured.
Cash Value
An amount of money that accumulated in an insurance policy which, depending on the plan selected is available to be borrowed, used as collateral for a loan, or withdrawn.
Claim
A notification to the insurance company that details damages or losses which may be covered by an insurance policy.
Convertible Term Insurance
Term insurance, which can be converted, at the option of the policy owner and without evidence of insurability, for a permanent insurance policy.
Deductible
A specified amount that a person pays before an insurance company pays a claim.
Effective Date
The date that an insurance policy or a change to a policy takes effect.
Endorsement
Amendment to the policy used to add or delete coverage.
Exclusions
Certain causes and conditions listed in the policy, which are not covered.
Face Amount
The amount stated on the policy that will be paid in case of death.
Grace Period
A period (usually 31 days) after the premium due date, during which an overdue premium may be paid without penalty. The policy remains in force throughout this period.
Group Insurance
Insurance that provides coverage for several people under one contract called a group policy.
In force
Insurance on which the premiums are being paid or have been fully paid.
Insured
The person on whose life the policy is issued.
Lapse
Termination of a policy because of failure to pay the premium.
Permanent Insurance
Provides life insurance throughout a person's lifetime.
Policy
The written contract of insurance including all clauses, riders, endorsements, and papers attached.
Policy Holder or Policy Owner
A person who owns the insurance policy.
Pre-Existing Health Condition
An injury, a sickness or a condition that existed before the date that an insurance policy takes effect.
Premium
The amount of money an insurance company charges for insurance.
Quote
An estimate of the cost of insurance, based on information supplied to the insurance company by the applicant.
Reinstatement
Restoring a lapsed policy back in force. The reinstatement may be effective after the cancellation date, creating a lapse of coverage. Some companies require evidence of insurability and payment of past due premiums.
Term Insurance
Provides life insurance for a specified period of time.
Underwriting
The process of reviewing, pricing, accepting or rejecting insurance risks.
Universal Life Insurance
A permanent life insurance plan that provides life insurance and includes a cash value with a wide range of investment options for tax sheltered growth of the cash value.
Waiting Period
The period of time between a submitted insurance application and the acceptance or rejection of that insurance application.
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Quotation Methodology
We start with a blank page.
Your needs are unique to you and your organization. It is our job to determine those needs and build your benefit plan to fit, not the other way around.
By asking the right questions our goal of understanding your real needs begins. It is important that we know your needs, plans and objectives.
Step One
We begin by gathering background information on your organization:
- Why you have a group benefit plan.
- How important is it in maintaining a benefit plan.
- Your company policies regarding employee benefits.
- Organizational attitude towards benefits.
- Company culture and working environment.
- Company’s business. (products, services, markets, etc.)
- Hiring practices.
Step Two
Then it is important to understand your company’s goals and objectives.
- Growth plans of the company. (over the next 2 to 5 years)
- Greatest opportunities for the company.
- Greatest challenges facing the company.
- The role this company wants to play in the community (local and business communities)
Step Three
Finally, gathering the factual information on your company.
- Your existing plan.
- Previous renewals.
- Past experience.
- Any existing medical/health situation.
- Number of employees. (full time, part time, casual)
- Types of employees (salary, hourly, commissioned, piece work, etc.)
- Workforce data (age, occupation, etc.)
- Company management structure.
The more information we have, the better we will be in providing you with best possible results. |
Profiling Insurance Carriers
What we look for when recommending an Insurance Carrier
- Product mix
- Years in business
- Existing client base
- Financial strength
- Customer service capability and rating
- Value added services
The right fit is not optional. If it's not right, it won't work. |
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