Trying to choose a broker can be a difficult process. Here are a few helpful hints…
- Your choice should NOT be based on price. All brokers can obtain similar pricing and in general, we all are paid a similar level of compensation.
- Your choice should NOT be based on the insurer they represent. If the broker is a group specialist, they will deal with many, if not all, of the same insurers.
- Your choice SHOULD be based on the broker’s knowledge and specialization in group benefits. You can check this by looking at their business card, website and other information available on the web. The information that you find should all indicate that group benefits is their area of specialization. A broker may be a great investment, life or living benefit specialist but if group insurance is not number one on their list, then you may be one of the almost 50% of companies that are using a broker that sells one or less cases a year.
- You should feel comfortable with the broker and feel that they are trustworthy. Remember, this is the person (not the insurer), who you will be dealing directly with for many years to come.
Ask your potential broker three questions, listed below. A good group specialist should be able to answer two out of three without going to others for answers. If they don’t understand the question or can’t answer even one, why are you considering them to support you with your group benefits plan?
How do you, as a group specialist, advise your clients to protect themselves in the event they make an error in the administration of their plan?
Let’s assume that after following your advice, your client implemented a policy to terminate employment after a prolonged absence (say 2 years +120 days). They then have an employee who goes off on an LTD claim that is expected to last 5 years. When does the option to convert their life insurance to an individual policy with no medical underwriting become available?
Is there any way an employer can pay 100% of the LTD premium and provide the benefit at the time of claim tax-free to the employee (without any deduction from the employees after tax pay)?
Call us if you want the answers.