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Why You and Your Broker Should Partner with Colonial Life
Employee Education
Employers say that…
90% of employers say employee understanding of their benefits is important.
Only 21% say employees have a good understanding of their benefits.
Source: Colonial Life, Society for Human Resource Management national conference survey, June 2008
Employee Education
We make benefits
count…
Employee Education
Benefits Counseling
Richard needs more
life insurance
Jenny needs cancer coverage
Michael needs disability insurance
Susan needs extra accident coverage
Benefits CounselorPersonalized one-to-one advice
Life Insurance
Most employees don’t have a life insurance agent they can
talk to or ask questions, especially if they need less
than $100,000 of life insurance.
Accident Coverage
For employees with kids, they can get benefits in the event that they (or their kids) get injured in an accident or
sports-related injury.
Disability Insurance
Most employees can’t afford to live off state disability alone.
Disability insurance helps them pay the bills as they
recover.
Cancer BenefitsHealth insurance may not cover
all medical costs, and what about credit cards bills, rent or
mortgage, car payments, etc?
Employer sets the budget…
Employees have the power to choose an option within the
employer-set budget…
OR
buy-up to a richer package.
Differentiating Yourself
Category 1 Category 2
Standard Group Enrollment
The “insurance guy” talks to the group and hands out brochures.
Everyone is too shy to ask questions.
Employees leave the enrollment confused.
Confused people don’t appreciate their benefits.
Your competition (other brokers) are all doing this.
Benefits Counseling Service
Employees receive a 1-to-1 benefits counseling session with an expert.
Employees are more comfortable asking questions.
Employees now understand their benefits more.
Employees now appreciate their benefits more.
You now offer something your competition doesn’t offer.
Differentiating Yourself
Which one do you want…A group meeting where everyone leaves confused
or…
Having a Benefits Counselor sit down with each employee one-to-one, giving every employee specialized attention?
Categorically, you’re offering the client a SERVICE that sets you apart from other brokers.
Voluntary Benefits
What % of employers with >1,000 employees offer voluntary benefits?
What % of employers with <100 employees offer voluntary benefits?
*“Target Model and Larger Case Research: Breakout for Benefits Communication and Education,” Colonial Life, July 2008
**“Small Business Owners: 2009” study, LIMRA International, 2009
78%*
27%*
Value: Big Company Benefits for Small Companies
Voluntary Benefits*at no direct cost to the employer*
Life Insurance
Disability Insurance
Extra Cancer Benefits
Extra Hospital Confinement Benefits
Extra Critical Illness Benefits
Extra Accident Benefits
How do employees pay for these voluntary benefits?
Answer: Payroll deductions
through a Section 125 plan*…
(Colonial Life clients get FREE Section 125 plan administration)
*for any products that qualify to be pre-taxed
Section 125 Plan
Why should employees do this?Payroll Deductions = Approximately 30% Savings
Why should employers do this?Payroll Deductions = Lower Gross PayrollLower Gross Payroll = Savings on Workers’ Comp
Lower Gross Payroll = Less Payroll Taxes
Colonial Life clients get all Section 125 administration fees waived
Section 125 Plan
without Section 125
Monthly Salary: $3,200
Taxable Income: $3,200
Taxes: - $ 980
After Taxes Income: $2,220
Insurance Cost: - $ 500
Take Home Pay: $1,720
Employee’s Annual Savings: $1,860
$ 500$2,700
$ 825
$1,875
Already paid for with pre-tax money
$1,875
Insurance Cost (pre-tax):
with Section 125
$3,200
Based on 2008 SC tax tables
How much do employees really save?
How much do employers really save?
$500 employee’s insurance cost (deducted from payroll)
x 12 months
$6,000 employee’s payroll deduction per year
x 8.65% (7.65% in FICA + 1.00% in FUTA)
$519 annual employer savings per employee
Section 125 Plan
How much do employers really save?
Section 125 Plan
Company Size Annual Tax Savings
5 employees $2,595
10 employees $5,190
15 employees $7,785
20 employees $10,380
35 employees $18,165
50 employees $25,950
Salary Illustrations
Employees understand how their choices affect their paycheck.
Savings with Section 125
How can you make
employees
appreciate their
benefits more?
Benefits Statements
31.2% benefits increase
“Our job is to make sure your employees appreciate you, the employer.”
How can your
clients save
money and NOT
sacrifice
benefits?
Medical BridgeSM Strategy
monthly cost hospitalization
Standard HMO: $311 $250 Deductible HMO: $242 $1,500 Savings: $69/mo.
Colonial Life Medical BridgeSM Policy:o Reimburses $1,500 for Hospitalizationo Hospitalization Out-of-Pocket Cost to Employee = ZERO
Cost: $28/month
Total Savings: $492/year/employee
$0
Susan
Services Provided by Colonial Life
Employee Education Services
One-to-One Benefits Counseling Services
Custom Benefits Portfolio Solutions
Benefits Statements
Field Underwriting Services
Enrollment Services
Case-Scrubbing Services
Section 125 Premium Only Plans
Access to CCH HRAnswersNow Website
Cost: ZERO
Big Firm Feel
You’re offering more resources to your client.
Clients feel like they’re getting a higher level of service.
You’ve incurred no additional overhead.
You’ve differentiated yourself from other brokers.
What’s The Next Step?
Run a sample quote on one of your clients using the Medical BridgeSM Strategy.
Test the Powerpoint presentation with one of your prospects/clients.
Let me prove that this program will work for you.
Contact Donna Dwyer for a personal demonstration of how Colonial Life can Make Benefits Count for you, your clients and their employees.
