Presentation is loading. Please wait.

Presentation is loading. Please wait.

The information contained in this tutorial is confidential and intended for the training and education of Colonial Life & Accident Insurance Company employees.

Similar presentations


Presentation on theme: "The information contained in this tutorial is confidential and intended for the training and education of Colonial Life & Accident Insurance Company employees."— Presentation transcript:

1 The information contained in this tutorial is confidential and intended for the training and education of Colonial Life & Accident Insurance Company employees and benefit counselors (insurance producers in WA) only. Colonial Life has not authorized any other use of this information. Do not give or show it to prospective insureds, employers of prospective insureds, other insurance carrier representatives, worksite marketing competitors, or anyone else not employed by or contracted with Colonial Life & Accident Insurance Company or other Unum Group business units. Benefits Landscape: Fitting the Pieces Together NEXT

2 Menu By taking this tutorial, you will be able to effectively position our company’s voluntary benefits to a decision maker because you will understand the benefits landscape, which means to you, you will be prepared to discuss Colonial Life’s role in the marketplace, and the real benefit to you is that you’ll feel confident that you are delivering the best benefits solutions to working Americans. Employer-Offered Core Benefits Flexible Benefits Plans (Section 125) Understanding and Positioning Our Products Need for Voluntary Benefits NEXT BACK

3 How does Colonial Life fit within the benefits landscape? Benefits Landscape Tip : Click on the puzzle piece to go to that lesson! NEXT BACK MENU

4 Based on a simple concept: While you work, you pay taxes into the Social Security system, and when you retire or become disabled, you, your spouse and your dependent children receive monthly benefits that are based on your reported earnings. Also, your survivors can collect benefits if you die. Reference: Social Security Online. Accessed Social Security Benefits Landscape NEXT BACK MENU

5 Social Security Mandatory Employer pay FICA taxes of 7.65% Employee pay FICA taxes of 7.65% Benefits Landscape NEXT BACK MENU Drawbacks Individual must wait 5 months to apply for Social Security disability Doctor must state that you will be out for at least one year or that you will die within the first year Typically requires several hearings before approval

6 Jim, 43, has worked for seven years in a factory. He is a father and a husband. It’s winter, and the sidewalks are covered in ice. Social Security Scenario Benefits Landscape NEXT BACK MENU One day, Jim was walking outside and loses his balance. He falls and injures his back. After being rushed to the emergency room, doctors performed surgery on his ruptured discs. Due to his injury, Jim is unable to work. After waiting six months, his social security claim has been denied. Jim and his wife will now have to exhaust their life savings and or borrow from family and friends to make ends meet.

7 What do we offer that could help employers and employees with similar situations? Social Security Benefits Landscape NEXT BACK MENU Voluntary Accident and Disability Cover employees’ accidents that happen on- and or off-the-job Pay directly to the insured

8 It usually takes close to _____ to begin receiving Social Security payments. Lesson Quiz Benefits Landscape NEXT BACK MENU 12 days 5 months 6 months 12 months

9 To qualify for Social Security, a doctor must state that you will be out for at least ______ or that you will die within the first year. Lesson Quiz Benefits Landscape NEXT BACK MENU 14 days 5 months 6 months 1 year

10 A government-mandated program that provides compensation and medical expense payments to employees and their dependents if the employee suffers a job-related illness, injury or death. Employers in most states are required to pay premiums to fund these programs. Workers’ Compensation only pays workers who are injured on the job, and it does not cover unemployment. Reference: “Workers’ Compensation.” Accessed compensation.asp#axzz1bLb7pW7a compensation.asp#axzz1bLb7pW7a Workers’ Compensation Benefits Landscape NEXT BACK MENU

11 Workers’ Compensation Mandatory but can vary by state Paid 100% by the employer Pays 100% of medical bills if injury is related to the job Pays up to 2/3 of income with a state- specific maximum amount Limited by state specific elimination periods Determines premiums based on industry rating and claims experience Benefits Landscape NEXT BACK MENU

12 Karen is a 36-year-old single mother of three. On a family vacation, Karen goes skiing down a steep slope. She loses her balance and severely injures her back. Workers’ Compensation Scenario Benefits Landscape NEXT BACK MENU She’s due back to work on Monday. She knows that if she is out of work she won’t receive a paycheck, and since this injury happened while off-the-job, she won’t be compensated. As a single mother, she worries that any additional medical bills will jeopardize their family’s financial situation. She decides not to go to the doctor, knowing she can’t afford to pay for the treatment. On Monday, Karen goes into work, still in pain. She claims to have slipped on ice while at work, and tells her employer Timothy. Immediately she goes to the emergency room for treatment. Timothy sits in his office, concerned. He knows that since Karen has claimed her injury happened while at work, it is considered a workers’ compensation claim. Furthermore, she is the third employee this year to file for workers’ compensation on a Monday morning.

13 Disadvantages For the EmployerFor the Employee Premiums may be high because of the nature of the employer’s business as the costs are based on the employer’s accident record Administering workers’ compensation can be difficult, with requirements such as a state- specific wait period that pays retroactively to day one, and as a result it can encourage employees to stay out of work longer Paperwork burden for the employer is increased because of requirements to file accidents with state authorities Social Security disability benefits can offset workers’ compensation benefits in some states Defending fraudulent or frivolous claims can take time and money Benefits Landscape NEXT BACK MENU

14 What do we offer that could help employers and employees with similar situations? Workers’ Compensation Benefits Landscape NEXT BACK MENU Voluntary Accident and Disability Covers employees’ accidents that happen off-the-job – Off-the-job coverage is not provided with Workers’ Compensation Helps minimize Workers’ Compensation rate for the employer

15 Workers’ Compensation pays 100% of medical bills if the injury is __________. Lesson Quiz Benefits Landscape NEXT BACK MENU An accident Off-the-job Job-related Employer’s fault

16 Workers’ Compensation pays up to 2/3 of income. Both the percentages and maximums are __________. Lesson Quiz Benefits Landscape NEXT BACK MENU State-specific Equal Employer-specific Employee-determined

17 For Workers’ Compensation, there are state-specific elimination periods. Lesson Quiz Benefits Landscape NEXT BACK MENU True False

18 Workers’ Compensation can be retroactive to day one if the employee is out of work for a state-specified number of days. Lesson Quiz Benefits Landscape NEXT BACK MENU True False

19 A type of health expense insurance that is designed to pay a certain percentage (such as 80 percent) of hospital, surgical, and medical bills. Major Medical Definitions: Co-insurance Co-pay Deductible COBRA HMO PPO POS Maximum out-of- pocket expense Benefits Landscape NEXT BACK MENU

20 Major Medical Voluntary Has a lifetime maximum for each policy Range of deductibles Carries co-insurance Comes in these forms: – HMO – PPO – POS Benefits Landscape NEXT BACK MENU

21 Major Medical Common Features Co-insurance – varies by state Deductibles – range from $250-$5,000, if not more Out-of-pocket maximums Portability through COBRA for 18 months after termination* * “Health Plans and Benefits.” United States Department of Labor. Accessed Benefits Landscape NEXT BACK MENU

22 Stacey, a wife and mother of two, has been admitted into the hospital. An oncologist informs her that she has cancer and will need immediate treatment. Two months later, Stacey has already incurred $20,000 of medical expenses. Her coworkers at the dentist office she’s worked at for ten years had a fundraiser to help pay for some of her medical expenses. Major Medical Scenario Benefits Landscape NEXT BACK MENU Medical Expenses$ 20,000 Deductible (which insured is responsible for)2,500 Co-insurance (20% - which insured is responsible for)3,500 Maximum out-of-pocket10,000 Remaining Expenses (covered by the major medical plan)$ 14,000 Even though she has major medical coverage and her coworkers had a fundraiser, Stacey and her family still struggle to maintain their lifestyle due to the numerous medical expenses and other out-of-pocket costs related to her cancer treatments.

23 What do we offer that could help employers and employees with similar expenses? Major Medical Benefits Landscape NEXT BACK MENU Voluntary Hospital Confinement Pays cash which can offset the deductible and out-of-pocket medical and non-medical expenses Gives employers more options with the costs of medical benefits Gives employers greater control of the rising costs of medical coverage Voluntary Catastrophic Illness Helps employees deal with out-of-pocket expenses associated with catastrophic illnesses such as cancer

24 Major medical comes in the form of __________, __________, and ________ plans. Lesson Quiz Benefits Landscape NEXT BACK MENU Core benefits, voluntary benefits, and flexible benefits PPOs, Health Savings Accounts, and Flexible Spending Accounts Health Maintenance Organizations (HMO), Preferred Provider Organizations (PPO), and Point-of-Service Plans (POS) Dental, Vision, and Health Maintenance Organizations

25 Major medical plans are portable through __________ for 18 months after termination of employment. Lesson Quiz Benefits Landscape NEXT BACK MENU COBRA ERISA Colonial Life Aflac

26 A type of insurance coverage offered to a group of people. This coverage will provide a benefit to the beneficiaries if the covered individual dies during the defined covered period. Reference: term-life-insurance.asp#axzz1a0sk7kfJ Investopedia. “Group Term Life Insurance.” Accessed term-life-insurance.asp#axzz1a0sk7kfJ Group Term Life Benefits Landscape NEXT BACK MENU

27 Group Term Life Insurance Voluntary One to three -year renewable policy Not portable Participation requirements Benefit amounts based on earnings, position and occupation or flat benefit Usually includes a waiver- of-premium provision May offer a tax advantage Benefits Landscape NEXT BACK MENU Definitions: Renewable Waiver of premium

28 Allentown Memorial Hospital offers its 150 employees a group term life policy. Term life policy: does not build cash value Provides protection for employees only Pays $10,000 death benefit to beneficiary Not portable Group Term Life Scenario Benefits Landscape NEXT BACK MENU

29 What do we offer that could help employers and employees with similar expenses? Group Term Life Benefits Landscape NEXT BACK MENU Voluntary Life Supplements an employer’s existing group term life program by providing affordable life coverage Spouses and dependents can be covered, not just employees No participation requirements No cost to the employer Voluntary products are also portable

30 The typical group term life policy is a ______ renewable policy with no cash accumulation feature. It provides protection only. Lesson Quiz Benefits Landscape NEXT BACK MENU 14 days 5 months 6 months 1 year

31 Group term life policies cover employees only. Lesson Quiz Benefits Landscape NEXT BACK MENU True False

32 Replaces wages lost as the result of a non- occupational, disabling accident or sickness. Reference: Positioning Products with the Employer –Instructor Guide. 1/2006. Group Long Term Disability Benefits Landscape NEXT BACK MENU

33 Group Long-Term Disability How it differs from short-term disability Elimination period Duration of the benefit period which may be 5 or 10 years or to age 65 A more restrictive definition of disability Definitions: Elimination period Short-term disability Long-term disability Benefits Landscape NEXT BACK MENU Other typical characteristics Voluntary Not portable 6 months is most common elimination period Benefits range from /3% of employee’s pre-disability gross salary

34 Tyler, 28, is an engineer and sole provider for his family. One day he was driving when he was badly injured in a car accident. Paramedics flew him to a hospital, where he underwent several surgeries. Group Long-Term Disability Scenario Benefits Landscape NEXT BACK MENU The doctors advised Tyler not to return to work for at least three months. In the meantime, Tyler and his family will need to rely on their life savings and or borrow from family and friends to make ends meet.

35 What do we offer that could help employers and employees in a similar situation? Group Long Term Disability Benefits Landscape NEXT BACK MENU Voluntary Income Protection Helps employees protect their paycheck Replaces a portion of income to offset financial losses Helps cover everyday living expenses such as house payment, car payment, light bill and lunch money for the kids

36 With Group Long-Term Disability, an elimination period is a period for which no benefits are payable for __________. Lesson Quiz Benefits Landscape NEXT BACK MENU 1 month or less 1 month or more 2 months or more 3 months or more

37 The definition of disability for long-term coverage differs from _____ and from _____. Lesson Quiz Benefits Landscape This question has multiple correct answers. Select all that apply. NEXT BACK MENU State to state Person to person Employer to employer Insurer to insurer

38 Group Long Term Disability is portable. Lesson Quiz Benefits Landscape NEXT BACK MENU True False

39 Typically Group Long Term Disability can have a 3-month, 6-month or 1-year elimination period. _______ months is most common. Lesson Quiz Benefits Landscape NEXT BACK MENU None of the above

40 Flexible Benefits Plans (Section 125) Employees have more choices in benefit options Allows employers to offer benefit options of qualified benefits on a pre-tax basis Benefits Landscape NEXT BACK MENU

41 Flexible Benefits Plan Overview Section 105 URM FSA Premium Only Plan (POP) Allows employees to pre-tax premiums for qualified insurance premium Unreimbursed Medical FSA Allows employees to set aside pre-tax dollars to pay for qualified out-of- pocket health care expenses Dependent Care FSA Allows employees to set aside pre-tax dollars to pay for qualified dependent day care and other qualified dependent care expenses Benefits Landscape NEXT BACK MENU

42 Communicating the Concept of Pre-taxing Decision Maker Script Flex Plan Supplemental Form Ameriflex ePOP Online Application Benefits Landscape NEXT BACK MENU

43 Payroll Taxes Communicating the Concept of Pre-taxing EmployerEmployee FICA 7.65% Federal Varies by individual State Varies by State FUTA Varies by Individual SUTA Varies by State Benefits Landscape NEXT BACK MENU

44 Without a POPWith a POP Salary (Gross Pay based on 24 pay periods) $1,000 Taxes-$ Insurance--$180 $797.98$820 Taxes--$ Insurance-$180- Spendable Income$617.98$ Win for the Employee: Communicating the Concept of Pre-taxing +$45.72 Benefits Landscape NEXT BACK MENU

45 Communicating the Concept of Pre-taxing How much do employers really save?* $ 500Employee’s insurance cost (deducted from payroll) X 12 months $ 6,000Employee’s payroll deduction per year X 7.65%FICA taxes $ 459Annual employer savings per employee *This is just an example. Savings may vary by state. Company SizeAnnual Tax Savings 5 employees$ 2, , , , ,065 50$ 22,950 Benefits Landscape NEXT BACK MENU

46 Win for the Employer Communicating the Concept of Pre-taxing Without POPWith POP Annual payroll$500,000 Pre-tax Benefits$0$30,000 Taxable Payroll$500,000$470, % FICA$38,250$35,955 Savings$0$2,295 Benefits Landscape NEXT BACK MENU

47 What are three distinct advantages to an employer to using a Premium Only Plan? Lesson Quiz Benefits Landscape This question has multiple correct answers. Select all that apply. NEXT BACK MENU Employees’ taxable income will be reduced, thereby reducing employers’ share of FICA taxes Employers may benefit from employee retention Employers may benefit from expanded employee benefits

48 Core Benefits Conclusion Benefits Landscape NEXT BACK MENU

49 The Need for Voluntary Benefits Benefits Landscape NEXT BACK MENU

50 The Need for Voluntary Benefits Benefits Landscape NEXT BACK MENU

51 What are Voluntary Benefits? Insurance offered in addition to an employer’s core benefits The employee gets to select their benefits and is paid directly Benefits Landscape NEXT BACK MENU

52 Flexibility in using claim payments Portability Intact coverage Continued convenience Pays benefits directly to policyholders Advantages of Voluntary Benefits Benefits Landscape NEXT BACK MENU

53 What do employers gain from voluntary benefits? Lesson Quiz Benefits Landscape This question has multiple correct answers. Select all that apply. NEXT BACK MENU Reduced pressure to spend more on employee benefits Expanded benefits programs at no direct cost-and without reallocating benefits dollars from one area of benefits and compensation to another Improved morale and employee relations Better employee attraction and retention

54 Product Portfolio 2010 Distribution of Sales by Product Line Benefits Landscape NEXT BACK MENU

55 Product Lines Disability Life Supplemental Health (Hospital Confinement) Accident Special Risk (Catastrophic Illness) Product Portfolio Overview Benefits Landscape NEXT BACK MENU

56 Congratulations! You’ve successfully completed this tutorial. If this training has been helpful to you, please take advantage of our other Just in Time tutorials by clicking here.here. We welcome your comments and ideas, and would like to know what you think. To share your feedback, click this link to us.click this link BACK MENU


Download ppt "The information contained in this tutorial is confidential and intended for the training and education of Colonial Life & Accident Insurance Company employees."

Similar presentations


Ads by Google