What does best in class look like?
A group life industry leader should offer:
• |
Plan choices and price options to satisfy the needs of employers and employees alike. |
• |
Implementation services that make transition smooth and complete, with 100% satisfaction as a goal. |
• |
Technology – offered to all clients across the board – to support busy administrators and allow employees to help themselves. |
• |
Exceptional customer service that makes it easy to do business and lets customers know they always come first. |
• |
Personalized communication to help employees make informed decisions. |
• |
Long-term relationships that provide stability as well as responsive service to partners. |
• |
Strong values that build client trust. |
Employer focus
Busting the myths of bundling benefits
Two-for-one deals aren’t always the best value. For years, benefits professionals have heard that bundling group benefits is a better, more efficient way to deliver them. But is that true? In this article, Aware challenges some of the conventional wisdom concerning bundling.
Myth #1: Bundled benefits mean cheaper premiums
The thought here is that employers get a better deal by buying a bundle than if they were to receive each benefit individually. The truth is, by shopping benefits around employers may be able to find comparable, if not cheaper, pricing from carriers that specialize in particular benefits. A best in class carrier can offer attractive rates for a “one-off” plan because it has the underwriting experience and expertise to do so. And, for large employers (1,000+ employees) particularly, cost savings generated through the leading-edge technology and streamlined implementation offered by a best in class carrier can be greater than bundled savings.
Myth #2: Bundled benefits are more streamlined
Logic suggests that when multiple benefits are handled by one carrier, administrative processes will be streamlined and seamless. But often, though the bundled benefits are marketed under one name, they actually may be administered by separate divisions acting independently of one another. The administrative offices for different benefit groups of the same carrier may be in different locations with separate executive management, separate account management and separate claims processing.
A case in point is waiver of premium coordination between a carrier’s disability operation and its life operation. Employers may be better off seeking carriers that specialize in one product but have the capability and track record of working with other carriers to truly streamline benefits coordination.
Myth #3: Bundled benefits offer greater customization
It’s commonly believed that bundled benefits offered by one provider will have common features but can be customized to suit a client’s needs. That’s not necessarily the case. Sometimes bundled products have nothing in common and are backed up by different production and reporting processes. On the other hand, benefits within a bundle may be standardized, and pricing is based on limited or no customization. Carriers specializing in a particular product have the ability to make the product fit the employer, not the other way around.
While it might be tempting for companies to settle for an off-the-shelf or bundled package, a customized best-of-breed program may be the best solution for employers and their employees. Progressive employers seek out carriers with the most to offer because they understand that best of breed companies are positioned to offer clients the value, support and innovation they expect.
Historically, Minnesota Life has set the standards for group life insurance service. Large employers and employees depend on us to be the group life carrier that provides the options they expect and demand. Our client retention rate, the highest among leading companies in the group life insurance industry*, and our client referral rate** are proof that we deliver.
To learn more, contact the group sales manager in your region or visit www.LifeBenefits.com.
*99% five year average, 2004-2008, Exhibit of Life Insurance, page 25 of Annual Statement.
**In an independent satisfaction survey conducted by Gestalt, Inc. in 2009, 98% of clients said they would refer Minnesota Life to another company.
