February 11, 2021
Selecting the Right Benefits Advisor
In my former corporate life as an HR Director, I ran a $9 million benefits plan budget for 2,000 employees. At that level, it was incredibly complicated. For business owners with fewer employees, benefit plans can be equally mystifying and confusing with many options, cost models, and suppliers. My colleague Ross Bauer has written this to help ensure that you select the right plan and the right advisor.
Selecting the Right Benefits Advisor by Ross Bauer
Employee Benefits are complicated if you do not live in the Benefits World. For that reason, it is wise to find an Advisor that is willing to take the time to educate his clients and work diligently to solve problems before they become an issue. Some advisors are focused on commissions while good advisors are focused on the best interests of the client. Some advisors specialize in Employee Benefits while others work in many different areas within the Insurance World like a General Practitioner. If you needed complex surgery; you would seek an experienced specialized Surgeon that came with strong recommendations; not a General Practitioner.
The following questions may help you in your search for a qualified specialist.
- Has your Benefits Advisor explained the value proposition with your Group Benefits?
- Are you aware of the actual risk with your employee benefits contract?
- Have you ever had a Risk Management Analysis done on your benefit plan?
- Are you concerned that high claims might destroy the financial integrity of your plan?
- Has your Advisor explained the benefits of an alternate funding platform for your benefits?
- Are you concerned that you might be overpaying for your employee benefits?
- Has anyone ever told you about contingency plans for high priced medications?
- Do you feel comfortable with the level of transparency with your group benefits?
- Are your benefits set up to satisfy the insurance company or your valued employees?
- If you were able to save significate money on your benefits; what would you do with the savings?
Regardless of when your benefit plans are up for renewal, it’s a good idea to start asking these questions. For further advice or guidance, please give us a call.