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robintek

Mar 03
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HR Success

By Your Employee Matters

I remember a Southwest executive telling me once that if we take care of our people they will take care of our customers and that will take care of our profits. Since their inception this has held to be true. The Success article was an interview with the CEO of the $1.8 billion company, Andrew Cherng. Here are some pointers that he made to help nurture your workforce:

“The environment here is about personal growth, personal well-being. When you are healthy mentally, physically, emotionally, spiritually—when you’re doing well, you’re likely to do good things in your life and that’s what we advocate.”

Tell me you wouldn’t want to work for a boss like this!

“The environment is a way you see the future. One person at a time.”

Cherng realizes your environment and culture is a choice. As he stated, you can only build a culture through individuals; one person at a time.

“People who are successful tend to take care of those little things very well. And then they accumulate credit, resources, and do whatever it is that you need in life—that’s the preparation for success.”

Do you take care of the little things very well? Have you accumulated credit, resources, and do whatever it takes to prepare for success? As the saying goes, when you take care of the little things the big things tend to take care of themselves.

“We can all do a better job. And when we do we all get rewarded. The reward may come in just being happy or in other people being happy. When you do your job well, your customer feels that and your business blossoms”

How motivated are you and your fellow employees to not do just an average job or a comfortable one but an extraordinary, awesome one? Are they doing tasks in a way that make them feel happy?

Cherng suggests that management should ask employees:

“Are you being mindful? Are you putting your heart into the work? Are you passionate about your work? Are you loving your environment? Our job is to raise everyone’s levels of understanding and caring. When you raise the level of caring, you see a good result.”

While we think of ourselves as good people and have good intentions we often times don’t manifest that. An excellent book was written about it “Leadership and Self Deception.” The essential theme being that we deceive ourselves; that we in fact manifest caring. What have you done lately to show employees that you care?

We live in an experience economy and the whole purpose of any business is to increase human well-being. What a wonderful opportunity for every one of us!

Mar 03
Love0

The Purpose and Benefits of an Executive Benefits Plan

By Your Employee Matters

Attracting top leadership talent for your company is essential since good leaders grow businesses, increase productivity and motivate employees. However, many companies cannot afford to offer competitive benefits plans to the leaders who can guide their organization to success. Executive benefits plans provide a solution. If your company needs strong leadership, consider offering an executive benefits plan.

What is an Executive Benefits Plan

Attract, reward and retain leaders and key employees in your business with an executive benefits plan. It’s a contractual agreement between the employer and key employees. It offers retirement benefits that supplement your company’s existing benefits package.

The plan gives your company flexibility when offering compensation to executives and key employees, and it can:

  • Replace income at retirement
  • Replace benefits lost because of IRS limits on qualified plans
  • Defer compensation
  • Enhance benefits during an acquisition or other change of control
  • Add additional benefits to qualified employee benefit plans

There are no coverage, eligibility or participation requirements for an executive benefits plan, making it ideal for companies of all sizes.

Executive Benefits Plan Eligibility

Almost any employee is eligible for qualified employee benefits packages. Only select employees are eligible for executive benefits plans, however. According to the Department of Labor, these plans may only cover select management personnel with specific job titles.

  • President
  • Chief executive officer
  • Chief financial officer
  • Senior or executive vice president
  • General counsel
  • Treasurer

Additionally, highly compensated employees or those with key responsibilities may be eligible for executive benefits plans.

Products Available in an Executive Benefits Plan

Consider all the available products when you assemble an executive benefits plan. In general, you may choose from several product options, including:  

  • Executive Health Plans
  • Elective Deferred Compensation Plan (EDC)
  • Benefit Equalization Plans (BEPS)
  • Supplemental Executive Retirement Plan (SERP)
  • Medical Reimbursement Plans
  • Section 162 Bonus Plans
  • Split-Dollar Plans
  • 457(b) Plans
  • 457(f) Plans
  • Key Person Disability Coverage
  • Key Person Life Insurance

Funding Considerations

When funding an executive benefits plan, you can choose between two options.

  • Funded plans offer security since contributions are deposited into an independent trust which then pays the benefits.
  • Unfunded plans are deducted from the company’s general assets.

Talk to your benefits plan administrator or insurance agent for more details on funded and unfunded plans. Then choose the type that meets your needs.

Leaders can make or break a business. Offer an executive benefits plan to develop a strong leadership team. When choosing an executive benefits plan, look for one that’s managed by a reputable company. It should be effective and cost-efficient too as you retain leaders who help your company prosper.

Mar 03
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Highest Vehicle Theft Locations

By Your Employee Matters

The National Insurance Crime Bureau (NICB) released its list of U.S. metropolitan areas plagued with the highest stolen-vehicle rates in 2015. California cities took eight of the top ten spots, with New Mexico and Colorado filling out the list.

What does this mean for you, the business owner?

It reinforces the threat of vehicle theft. If your company vehicle is stolen, it could take some time to replace that vehicle, which could impact your business. Although it seems that those in sunny California get the short end of the stick, the bottom line is that thieves wreak havoc on business parking lots and jobsites nationwide.

The NICB recommends three levels of security:

  • Warning devices, such as alarms.
  • Immobilizing devices, such as a smart key or kill switch.
  • Tracking devices that help police locate the vehicle.

The NICB also advises owners and users of vehicles to exercise such common sense precautions such as not leaving the car unlocked.

Although NICB’s recommendations provide viable risk-management techniques, a commercial auto policy that includes theft coverage will also help.

If we haven’t discussed your coverage in a while, now’s the time. Please give us call us today

Mar 03
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Types of Employee-Sponsored Dental Benefits Plans

By Your Employee Matters

Some employers offer a dental plan as part of the employer benefits package. It can be a beneficial employment perk, so become familiar with the common types of dental benefits as you decide if your company’s plan meets your needs.

Fee-for-Service Dental Benefits

Under this type of plan, the dentist receives a set fee for services. There are five common types of fee-for-services dental benefits plans.

    1. Direct Reimbursement

      This self-funded plan allows you to choose your dentist. Your insurance will directly reimburse the dentist or you pay out-of-pocket, submit a receipt to your insurance and receive a check.

    1. Indemnity Plans

      Also called traditional insurance, indemnity plans allow you to choose your dentist and pay dentists based on the procedures they perform. The dentist determines the fee for each procedure, and your insurance covers a portion of each procedure up to a maximum allowance.

    1. Preferred Provider Organization (PPO)

      Dentists in a PPO plan contract with an insurance company and deliver specific dental services for a set fee. You’ll save money by seeing a dentist in your PPO rather than an out-of-network provider.

    1. Managed Care

      Dental providers may partner with members and provide managed dental care. This care includes dental procedures and financing.

    1. Dental Health Maintenance Organization

      A dental health maintenance organization (DHMO) is also known as a capitation or pre-paid plan. Under a DHMO, your dentist receives a certain amount of money each month. The dentist must then provide services to you at no or a reduced cost. You must visit the covered dentist and will not receive any financial reimbursement for services you don’t use.

Other Types of Dental Plans

In addition to fee-for-service dental benefits, you may choose from several other types of dental plans.
Discount or Referral Dental Plans

    1. The insurance company may contract with a network of dentists who agree to discount their services to members. You pay for treatment you need out-of-pocket according to the fee schedule.
    1. Point of Service Options

      With your managed care dental plan, you may receive treatment from dentists who are not in your network of dental providers. Expect to pay significantly more to out-of-network providers than you would for services from an in-network dentist.

    1. Table or Schedule of Allowances Plans

      A type of indemnity plan, a table or schedule of allowance dental plan assigns a dollar amount to each dental procedure. You must pay the difference between the allowance and the actual charge, and you may need to choose a PPO dentist to receive the maximum benefit amount.

Your employer may offer dental benefits as part of your employee benefits package. Understand which type of plan is offered as you decide if the coverage is right for you.

Mar 03
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Education Goes Hand-in-Hand with Retention

By Employment Resources

Businesses need to inform their workers about health plan changes under the Patient Protection and Affordable Care Act. That’s the word from Paul S. Amos, II, president of Aflac, Inc., a major health insurance provider.

Says Amos, “If you believe in your employees and want to retain them so can grow your company and corporate culture, it makes sense to educate them about how the act will affect their health benefits and premiums.” He noted that the Aflac 2013 WorkForces Report, a nationwide survey of 1,900 employers and 5,300 employees, found that nearly four in five employees (79%) believe that effective communication about health plans would make them less likely to leave their current positions.

Unfortunately, most businesses have not yet educated their workers about PPACA. According to the survey, nearly three quarters of employees (72%) were unaware of consumer-driven health care plans, while 76% were not knowledgeable about health care exchanges.

What’s more, only one in four employers (26%) said they fully understand the health care reform law.

Amos offers businesses this advice:

“The reality is your workers need you and, if you don’t educate them [about changes in health benefits plans], they’re going to begin to think about going elsewhere. Rather than picking themselves up by their bootstraps and saying, ‘I’m going to learn it myself,’ they’ll just go to another employer who will keep them informed.”

As Employee Benefits specialists, we’d be happy to explain the PPACA health care plan reforms to your workers and help them make decisions about their benefits.

Mar 03
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5 Reasons to Buy Group Term Life Insurance

By Employment Resources

With life insurance, you may pay your final expenses and provide financial support to your dependents. This insurance is valuable, and you should consider purchasing group term life insurance for five important reasons.

First, understand that group term life insurance describes an insurance product that’s available to a group. Many employers offer it to their employees to purchase when they start with the company or during open enrollment. The premium costs may be covered by your employer as part of your benefits package or you may pay it through payroll deductions.

This type of life insurance covers you for a set time. It includes a set death benefit that’s awarded to the beneficiary of your choice if you die before the term expires. Group term life insurance remains in effect until the term expires and as long as you remain employed with the company and pay any assigned premiums.

There are five good reasons to purchase group term life insurance, so consider them carefully as you decide if a policy is right for you.

    1. Afford Life Insurance

      Because this insurance is offered to a group of people, it typically costs less than an individual policy, making it affordable for many consumers.


    1. Provide for Loved Ones

      The death benefit of a term life insurance policy goes to the beneficiary you name on the policy. They can use the money to pay your final expenses, cover their daily living expenses, repay debt or fund college or retirement. You may also name a charity or scholarship fund as the beneficiary.

    1. No Medical Exam Required

      Individual life insurance policies often require a medical exam to prove that you are an acceptable risk. Group policies often do not have the same medical exam requirement, which means you are eligible for coverage even if you have a serious illness, disease or other high-risk factor.

    1. Boost Your Overall Life Insurance Coverage

      You can own a separate individual life insurance policy and qualify to purchase group term insurance from your employer. Additionally, most group term policies allow you to purchase additional coverage on the policy. With these benefits, you boost your total life insurance coverage and provide additional financial resources to your beneficiary.

    1. Cover Family Members

      Provide invaluable life insurance coverage to your spouse and children when you add them to your group term policy. Your dependents will not need to undergo a medical exam, and you’ll simply pay the extra premium through paycheck deferrals.

Protect your loved ones when you purchase life insurance. Group term life insurance is an excellent way to buy this valuable coverage, so ask your employer about it today.

Mar 03
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Maximize ROI on Employee Benefits

By Employment Resources

Are you getting the best return on your investment in employee benefits? Unfortunately, it’s not always not easy to answer this question. You might well have too much information on some programs – and too little on others.

To help employers evaluate the cost-effectiveness of health-related benefits program, experts recommend these guidelines:

    1. Focus on the overall picture.

      It can be easy to miss the forest for the trees. For example, when measuring the impact of a return-to-work program, it’s easy to determine whether disabled employees are getting back on the job sooner. However, you also need to consider the overall impact of the program on your other health-related benefits.

    1. Share information among programs.

      Most employers manage their health benefits in separate silos – Medical insurance in one place, Disability in another, and Workers Compensation in a third. Be sure to distribute every incident of medically related absence throughout the company. The more effectively you integrate your data among all your benefits programs, the better.

    1. Benchmark your results against those of your peers.

      The easiest and most straightforward standard is how comparable companies in your industry are doing. Although this might not be a precise comparison, it should give you a fair idea of what your competitors are doing right (and wrong) with their benefits programs – offering guidance you can use to improve yours.

For example, to compare your Short-Term Disability program with these of other companies, consider how the incidence and duration of disability incidents are related to underlying diseases in the workforce and the design of the plan (the elimination period, rate of wage replacement rate, maximum benefit period, and so forth).

We’d be happy to help you evaluate the cost-effectiveness of your benefits program. Just give us a call.

Mar 03
Love2

What is a Voluntary Legal Insurance Plan and Why You Need It

By Employment Resources

Many employers offer numerous benefits to employees. These benefits improve morale and productivity and allow employees to better plan their finances and futures. A typical benefits package may include health insurance and a retirement plan, however your employer could also offer voluntary benefits such as life insurance, dental and vision coverage and critical illness insurance.

Legal insurance is another voluntary benefit your employer may offer. It works like health insurance. You pay a premium from every paycheck and receive access to legal advice from a network of experienced and vetted attorneys. Understand this coverage as you decide if it’s right for you.

Why You Need Voluntary Legal Insurance

If you’ve ever needed to contact a lawyer, you know how intimidating and expensive it can be. First, you have to find an attorney who specializes in your situation. Then you have to decide if you can afford the fees. The process takes time and can be scary as you face legal issues that threaten your financial security and peace of mind.

Voluntary legal insurance relieves the burden of finding an attorney and paying the fees. You save time since you have access to a network of local and national attorneys who specialize in your specific legal challenges. You also save money since you don’t have to worry about paying for the consultation and services you need. This coverage helps you manage your legal costs and protects your security and peace.

What Does Voluntary Legal Insurance Cover?

Every legal insurance plan is different. In general, voluntary legal insurance covers advice and consultation services about a variety of personal legal matters, including:

  • Identity theft issues
  • Financial concerns
  • Debt issues
  • Elder care matters
  • Family law concerns
  • Domestic relations and other family related matters
  • Tenant matters
  • Wills and estate planning
  • Power of attorney establishment
  • Real estate matters
  • Traffic defense
  • Personal injury claims
  • Civil litigation/consumer transactions
  • Criminal matters

Depending on your coverage, you may also receive access to DIY legal documents, an online legal library and customer care center access. You could also receive a reduction in fees when you consult a network attorney about matters related to non-covered, non-excluded issues.

How Legal Insurance Works

To enroll in your employer’s voluntary legal insurance plan, contact your Human Resources manager. When you’re approved, you receive a detailed Schedule of Benefits, and payments are deducted from your paycheck. Your attorney will complete the claim form you submit to your Human Resources manager or insurance agent.

If your employer participates in a voluntary legal insurance plan, consider signing up for coverage. You’ll gain practical assistance and guidance from a qualified attorney and receive peace of mind.

Mar 03
Love0

Conversion Options for Term Life Insurance

By Life and Health

Term life insurance is temporary, but it doesn’t have to stay that way. Most term life policies sold today can be converted to permanent whole life or universal life which will provide coverage until you die and can offer significant advantages.

When you convert from term life to permanent, you won’t have to answer questions about your health or undergo a medical exam. If you bought a policy when you were in excellent health but then later got sick, you’ll maintain the health rating you had when you purchased coverage.

If you’re relatively young, the conversion feature also allows you to build your life insurance investment gradually as money becomes available. More and more people are using this strategy to accumulate a life insurance nest egg for their beneficiary(ies). For instance, you might convert $100,000 of a $1 million term life policy to permanent life every few years.

When shopping for convertible term life coverage, ask yourself:

Is there a deadline for converting?

      Although some policies let you convert at any time until the end of the term, others only allow conversion during a specific period.

What are your conversion options?

      This will depend on the insurance company and the quality of its portfolio.

What are your options if you don’t convert?

    Once your policy reaches the end of its term, the premium spikes and is no longer guaranteed. To keep coverage in force, you’ll either have to either pay a far higher rate or shop for a new policy, which might be difficult if your health has declined.

We’d be happy to review your financial situation and offer our recommendations. Just give us a call.

Mar 03
Love0

Understand Critical Illness Insurance

By Life and Health

Medical advances keep us healthier. However, debilitating illnesses still affect thousands of people, and the costs of treating those illnesses cause many medical bankruptcies. With critical illness insurance, you may get the treatment you need, keep your home and other assets, and spend time with your family.

Critical Illness Insurance Coverage

Dozens of medical conditions, including injuries, disease and surgeries, are covered under critical illness insurance. Several examples include:

  • Alzheimer’s disease
  • Cancers
  • Coma
  • Heart attack
  • Heart valve surgery
  • Kidney failure
  • Loss of sight/speech/hearing
  • Multiple sclerosis
  • Organ transplant
  • Paraplegia
  • Severe burns
  • Stroke

Many critical illness insurance companies offer critical illness categories such as cancer and related conditions, organ transplants and heart-related conditions. You may purchase coverage for one category or may more to purchase a policy that covers all the categories.

Policies usually range from $10,000 to $1 million. When you do file a claim, the insurance company will pay it in a lump sum. You may then use the money for any expense you wish, including:

  • Medical bills, deductibles, co-payments or diagnostic testing
  • Experimental treatment
  • Out-of-network doctors and hospitals
  • Transportation to treatment
  • Wheelchair or other medical equipment and supplies
  • Home health care
  • Home improvements or retrofitting
  • Household living expenses
  • Income replacement
  • Family vacation
  • Childcare

Keep in mind that critical illness insurance typically provides coverage for two to 25 years. While the insurance remains in effect as long as you pay the premiums, critical illness insurance policies include a waiting period, also known as an elimination period, during which you cannot receive benefits.

Critical Illness Insurance Costs

Your age, height, weight, family health history, nicotine use and current medical conditions affect the cost of your critical illness insurance policy. Premiums may increase when these factors change.

Also, your costs depend on the amount of coverage you buy. Choose the right amount of coverage for you when you add two years worth of mortgage or rent payments and the amount of your outstanding credit card debt.

How to Purchase Critical Illness Insurance

When you decide critical illness insurance is right for you, purchase it in several ways.

    1. Purchase an individual policy, which includes a medical exam.
    1. Add the benefit through your employee benefits package and pay the premiums through payroll deduction. You’ll either receive a certificate under your employer’s group plan or an individual workplace policy.
    1. Add as a supplement to your major medical health insurance policy.
    1. Purchase as a supplement to your life insurance policy.

With critical illness insurance, you can afford medical treatment and provide for your family. It gives you peace of mind and may be a wise investment.

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