Why Start up Companies Need Life Insurance
By Bret Harding
Often times when starting a new venture life insurance is overlooked, this is because in most cases the individual had life insurance coverage through their previous employer. It’s critical to not overlook the important role life insurance plays in starting a new business venture. After all your family, your customers, and your business partners will be depending on you more than ever. And often time’s banks require a life insurance policy on the business owner before lending any money.
Life insurance is especially important to start up companies, because often times there are only a few key members of the business that perform all the vital functions. In these situations, life insurance can help the surviving partner or the family members of the deceased proprietor have resources to keep moving forward. Life insurance provides coverage that can help make a difficult situation easier to manage. Effectively utilizing life insurance in a business start up will assist the company with the wide range of factors that arise when an owner or a key executive or family member is no longer around to handle his or her usual responsibilities.
Essentially, the life insurance that every start up needs can be broken-down into three types or categories:
I. Individual Life Insurance: An individual life insurance policy will ensure the family members of a deceased business owner will have the necessary financial resources to move forward during a difficult time.
II. Key Man Life Insurance: Essentially key man life insurance protects the business should anything happen to a key individual (i.e. sales executive, computer programmer, key partner, etc).
III. Buy-Sell Agreement: A buy-sell agreement is critical business document that addresses important business concerns like “what would happen to the business if one of the owners passed away, left the company, suffered a divorce, or became disabled?”
By insuring the life of persons who are critical to the life of the company, it is possible to safeguard against the unexpected demise of an individual who possesses a skill set that is foundational to the success and ongoing life of the company. While life insurance cannot completely fill the gap left by the death of a valued member of the organization, life insurance coverage will provide the corporation with financial resources that can be applied to the expanses associated with finding and training a new employee. Business life insurance proceeds can also be used to cover the expenses of obtaining consultants and other temporary services that will assist the company in continuing to operate in the short term.
To learn more about the important role life insurance can play in your business call Bret Harding today: 801-372-2647. Visit: www.UtahInsuranceSolutions.com
Friday, June 5, 2009
Tuesday, May 26, 2009
Does My Business Need A Buy-Sell Agreement?
By Bret Harding
First of let me say “YES” a buy-sell agreement is a critical document for any business that has more than one founder or has recently brought additional “key stakeholders” into the business. The reason for a buy-sell agreement is to address important business concerns like “what would happen to the business if one of the owners passed away, left the company, or became disabled?”
In almost every instant the surviving owners generally want to ensure a continuity of ownership and management without having the departing owner’s successor thrust upon them. Nor do they want to compromise the liquidity needs of the business by funding a significant buyout. Disabled or deceased owners would want their families compensated fairly for their share of the business. A properly drafted buy-sell agreement can achieve all of these goals by:
• Providing that upon the occurrence of a specified “triggering event,” owners are guaranteed that their interest in the business will be purchased;
• Providing that the owner’s interest must be sold to the company, the remaining owners, or a combination of the two;
• Providing a mechanism whereby the purchase price may be determined by market conditions in existence upon the occurrence of the event;
• Providing a funding source, primarily through insurance policies, so that the liquidity needs of the business or its owners will not be onerous; and
• Establishing a valuation of a deceased owner’s interest in the business for estate tax purposes.
What are Triggering Events?
An integral part of any buy-sell agreement is to specify what type of events will trigger a mandatory or optional buyout of an owner’s interest by the other owners or the entity itself. The most common of these triggering events are described below.
Death or disability
This event is almost universally provided for in the buy-sell agreement. Terms of this buyout will include the determination of disability, the time for payment to the owner or the owner’s estate, whether the entity or the surviving shareholders have the obligation to purchase the interest, and whether a funding mechanism, such as life or disability insurance, should be maintained by the entity or the owners personally.
Desire to sell the interest to a third party
The agreement should provide that the terms of the potential sale be presented to the other owners, and that they be given the option of:
• matching the offer made by the outsider;
• purchasing the shares in accordance with the valuation method and payment terms provided for within the agreement;
• having the entity repurchase the shares issued in accordance with the valuation method provided for within the agreement; or
• allowing the sale to be effectuated to the third party.
Retirement of an owner
While a sale to a third party would provide the other owners an optional right to purchase the selling owner’s interest, an owner’s retirement will generally trigger a mandatory buyout. Of course, the conditions under which an owner may have the right to retire so that the remaining owners, or the entity, would be compelled to buy that owner out are often a point of negotiation. Once again, valuation methods and payment terms will be important issues, because there are no outside funding mechanisms, such as life or disability insurance, available to bear the cost.
Owner’s divorce or bankruptcy
Either of these events can subject the business to interference from outsiders. To prevent this, the other owners should have the option to compel the affected owner to sell his shares to the remaining owners or the entity itself, in accordance with the payment terms and valuation methods (to be discussed later.)
Types of Funding Arrangements for a Triggering Event
Cross-purchase arrangements
Under this plan, each surviving owner of a business becomes personally obligated to purchase the departing owner’s interest. To provide the surviving owners with liquidity, each owner would own an insurance policy on the lives of the other owners. The proceeds of the life insurance policy would be received tax-free by the survivor and then used to purchase the deceased owner’s interest so that the survivor’s ownership interest remains the same in relation to the other surviving owners.
Entity redemption arrangement
Under this plan, the business entity is obligated to purchase the owner’s interest. To minimize the impact this might have on the entity’s liquidity needs, the entity can purchase life insurance policies on each owner. The business names itself as the beneficiary of each policy, and the face amount of the policy will be equal to the agreed-upon purchase price set in the buy-sell agreement. The proceeds should be received by the entity free of ordinary income taxes, pursuant to IRC section 101. This would be followed by a purchase of the owner’s interest by the entity with the life insurance proceeds.
Types of Valuation Methods
The goal of a valuation method is to best approximate the business’s actual fair market value. Fair market value has been defined as the price at which property passes between a willing buyer and seller, neither under any compulsion to buy or sell, and both with knowledge of all relevant facts. Of course, where less than the entire ownership interest is being acquired, there might be discounts to reflect the lack of control or lack of marketability. Some of the more common business valuation methods are summarized below:
Book value
This method, also known as the net asset value method, is based on the net worth (assets -- liabilities) of a business on a company’s books and records for accounting purposes. While this method is easy and relatively inexpensive to ascertain, book values are based on historical-cost principles, which frequently become unrealistic over time, especially for assets such as real estate, patents, and goodwill. Some modifications of the book value method include the tangible book value method, which basically includes only assets, such as cash, inventory, equipment, and real estate. Economic book value would entail an appraiser in an effort to update the value of assets to their current market value.
Capitalization of earnings
This method attempts to value a business by estimating an acceptable rate of return on a purchaser’s investment in light of the risk associated with the particular business, and then applying such a rate of return to the anticipated earnings stream of the business, based on its average net earnings (after operating expenses) over the last few years. Any potential buyers would obviously be looking at a rate of return on their investment well in excess of the rate of return on a much safer alternative, such as a certificate of deposit or a blue-chip stock. Rates of 20% or more are not uncommon for small closely held businesses. An interesting variation on capitalization of earnings is known as the excess earning method. This method, frequently used when a business has substantial receivables, inventory, property, and plant and equipment, seeks to separate a desired rate of return on a company’s tangible assets from its total earnings in order to derive “excess earnings.” The excess earnings is then multiplied by a factor (the higher the risk, the larger the factor), and this amount is then added to the fair market value of the tangible assets to determine the purchase price.
In Summary
A Buy/sell agreement can be an effective tool to allow a business to continue after a triggering event. A buy-sell agreement funded with life insurance can, in the event of death of an owner, provide the surviving owners the funds necessary to meet the terms of the agreement. Executing a carefully planned buy-sell agreement will assure owners in a closely held business that their interest in the business they built is secure regardless of any unforeseen circumstances. In many cases this can be accomplished without putting excessive strain on the business’s cash flow, ensuring that the business and its remaining owners continue to succeed as well. The actual decision to implement a Buy/sell agreement is a planning decision that should include the owners and their professional advisors.
To learn more about implementing a Buy-Sell Agreement for your company call Bret Harding today: 801-372-2647. Visit: www.UtahInsuranceSolutions.com
First of let me say “YES” a buy-sell agreement is a critical document for any business that has more than one founder or has recently brought additional “key stakeholders” into the business. The reason for a buy-sell agreement is to address important business concerns like “what would happen to the business if one of the owners passed away, left the company, or became disabled?”
In almost every instant the surviving owners generally want to ensure a continuity of ownership and management without having the departing owner’s successor thrust upon them. Nor do they want to compromise the liquidity needs of the business by funding a significant buyout. Disabled or deceased owners would want their families compensated fairly for their share of the business. A properly drafted buy-sell agreement can achieve all of these goals by:
• Providing that upon the occurrence of a specified “triggering event,” owners are guaranteed that their interest in the business will be purchased;
• Providing that the owner’s interest must be sold to the company, the remaining owners, or a combination of the two;
• Providing a mechanism whereby the purchase price may be determined by market conditions in existence upon the occurrence of the event;
• Providing a funding source, primarily through insurance policies, so that the liquidity needs of the business or its owners will not be onerous; and
• Establishing a valuation of a deceased owner’s interest in the business for estate tax purposes.
What are Triggering Events?
An integral part of any buy-sell agreement is to specify what type of events will trigger a mandatory or optional buyout of an owner’s interest by the other owners or the entity itself. The most common of these triggering events are described below.
Death or disability
This event is almost universally provided for in the buy-sell agreement. Terms of this buyout will include the determination of disability, the time for payment to the owner or the owner’s estate, whether the entity or the surviving shareholders have the obligation to purchase the interest, and whether a funding mechanism, such as life or disability insurance, should be maintained by the entity or the owners personally.
Desire to sell the interest to a third party
The agreement should provide that the terms of the potential sale be presented to the other owners, and that they be given the option of:
• matching the offer made by the outsider;
• purchasing the shares in accordance with the valuation method and payment terms provided for within the agreement;
• having the entity repurchase the shares issued in accordance with the valuation method provided for within the agreement; or
• allowing the sale to be effectuated to the third party.
Retirement of an owner
While a sale to a third party would provide the other owners an optional right to purchase the selling owner’s interest, an owner’s retirement will generally trigger a mandatory buyout. Of course, the conditions under which an owner may have the right to retire so that the remaining owners, or the entity, would be compelled to buy that owner out are often a point of negotiation. Once again, valuation methods and payment terms will be important issues, because there are no outside funding mechanisms, such as life or disability insurance, available to bear the cost.
Owner’s divorce or bankruptcy
Either of these events can subject the business to interference from outsiders. To prevent this, the other owners should have the option to compel the affected owner to sell his shares to the remaining owners or the entity itself, in accordance with the payment terms and valuation methods (to be discussed later.)
Types of Funding Arrangements for a Triggering Event
Cross-purchase arrangements
Under this plan, each surviving owner of a business becomes personally obligated to purchase the departing owner’s interest. To provide the surviving owners with liquidity, each owner would own an insurance policy on the lives of the other owners. The proceeds of the life insurance policy would be received tax-free by the survivor and then used to purchase the deceased owner’s interest so that the survivor’s ownership interest remains the same in relation to the other surviving owners.
Entity redemption arrangement
Under this plan, the business entity is obligated to purchase the owner’s interest. To minimize the impact this might have on the entity’s liquidity needs, the entity can purchase life insurance policies on each owner. The business names itself as the beneficiary of each policy, and the face amount of the policy will be equal to the agreed-upon purchase price set in the buy-sell agreement. The proceeds should be received by the entity free of ordinary income taxes, pursuant to IRC section 101. This would be followed by a purchase of the owner’s interest by the entity with the life insurance proceeds.
Types of Valuation Methods
The goal of a valuation method is to best approximate the business’s actual fair market value. Fair market value has been defined as the price at which property passes between a willing buyer and seller, neither under any compulsion to buy or sell, and both with knowledge of all relevant facts. Of course, where less than the entire ownership interest is being acquired, there might be discounts to reflect the lack of control or lack of marketability. Some of the more common business valuation methods are summarized below:
Book value
This method, also known as the net asset value method, is based on the net worth (assets -- liabilities) of a business on a company’s books and records for accounting purposes. While this method is easy and relatively inexpensive to ascertain, book values are based on historical-cost principles, which frequently become unrealistic over time, especially for assets such as real estate, patents, and goodwill. Some modifications of the book value method include the tangible book value method, which basically includes only assets, such as cash, inventory, equipment, and real estate. Economic book value would entail an appraiser in an effort to update the value of assets to their current market value.
Capitalization of earnings
This method attempts to value a business by estimating an acceptable rate of return on a purchaser’s investment in light of the risk associated with the particular business, and then applying such a rate of return to the anticipated earnings stream of the business, based on its average net earnings (after operating expenses) over the last few years. Any potential buyers would obviously be looking at a rate of return on their investment well in excess of the rate of return on a much safer alternative, such as a certificate of deposit or a blue-chip stock. Rates of 20% or more are not uncommon for small closely held businesses. An interesting variation on capitalization of earnings is known as the excess earning method. This method, frequently used when a business has substantial receivables, inventory, property, and plant and equipment, seeks to separate a desired rate of return on a company’s tangible assets from its total earnings in order to derive “excess earnings.” The excess earnings is then multiplied by a factor (the higher the risk, the larger the factor), and this amount is then added to the fair market value of the tangible assets to determine the purchase price.
In Summary
A Buy/sell agreement can be an effective tool to allow a business to continue after a triggering event. A buy-sell agreement funded with life insurance can, in the event of death of an owner, provide the surviving owners the funds necessary to meet the terms of the agreement. Executing a carefully planned buy-sell agreement will assure owners in a closely held business that their interest in the business they built is secure regardless of any unforeseen circumstances. In many cases this can be accomplished without putting excessive strain on the business’s cash flow, ensuring that the business and its remaining owners continue to succeed as well. The actual decision to implement a Buy/sell agreement is a planning decision that should include the owners and their professional advisors.
To learn more about implementing a Buy-Sell Agreement for your company call Bret Harding today: 801-372-2647. Visit: www.UtahInsuranceSolutions.com
Friday, May 15, 2009
How to Buy Individual Health Insurance in Utah
By Bret Harding
ONE OF THE hardest things about leaving a job is walking away from the benefits package. Once you're out on your own — whether you're starting your own business, working for a small employer that offers no coverage or suddenly find yourself among the ranks of the unemployed — the reality is the same: You must cough up a lot of dough for what will feel like inferior health coverage.
Before you start your search, brace yourself. The Utah health-insurance market isn't pretty, but when navigated properly can save you money in the long run!
The key, of course, is to shop around and make an informed decision that you and your pocketbook can live with. This will take some time. Experts recommend you give yourself at least 60 days to examine your options and apply for a policy. There's a lot more to it than when your former employer asked you to check a box electing a managed-care plan or a preferred provider organization.
Here's how to navigate the private Utah health-insurance industry.
How it Works
If you thought buying life insurance was tough, just wait until you shop around for health coverage. Unlike an employer-sponsored plan that has to accept everyone at the same price, private plans in most states are underwritten based on your age, weight, smoking status and health history. In some cases, applicants will even have to undergo a medical exam. A preexisting condition as common as asthma could be enough for an insurer to hike your premiums, while a history of anxiety or depression might cause an underwriter to think twice. And if you have a history of heart disease, cancer or diabetes, you could be out of luck entirely. A plan could either be too expensive or include a rider that excludes the very ailment for which you need coverage. "If they look at your application and see something they don't like, a $600 [a month] policy could go to $850," says Bret Harding, chief executive of online insurance broker Utah Insurance Solutions.
You should also know that health insurance is regulated at the state level. In places like New York, New Jersey and Vermont, insurers must offer coverage to every applicant, regardless of age or health status. This egalitarian approach sounds great — until you see the premiums. Even young healthy men, who are the cheapest to insure, could be charged as much as $1,000 a month, says Bland. In other states, such as California and Utah, there are fewer restrictions on the insurers, and premiums tend to be more reasonable for young people and pricier for older folks. The problem in these regions is that insurers can outright refuse to provide coverage. In such cases, consumers can buy pricy policies from a state high-risk pool. But it won't come cheap, and it could exclude pre-existing conditions. For more information on the rules for your area, contact your state insurance commission's Web site.
How to Buy It
The quickest way to get a handle on your options is to look for policies on Web sites such as UtahInsuranceSolutions.com. If you need a little more hand holding, you should contact a local health insurance broker. Just make sure you find someone who represents a lot of companies and understands the underwriting standards for each insurer. The last thing you want is to be rejected from a plan that doesn't typically cover someone with your health profile. Not only is it a waste of time, but it could also raise a red flag when you apply to other insurers. An informed broker could steer you away from such insurers.
And since group coverage tends to be cheaper, don't forget to check with your professional trade association for coverage. The Writers Guild and the Actors' Equity Association are two examples of groups that offer their members health insurance. (In most states, however, people in their 20s and 30s may find cheaper coverage through an individual plan.) And for those starting a business: Most states allow as few as two employees to buy a small group policy.
The CostAccording to the Kaiser Family Foundation, a Menlo Park, Calif.-based nonprofit focused on health-care policy, the average employee paid $58 a month for health insurance in 2007. Employers picked up the rest — a $3,785 tab. How much can an individual expect to pay? America's Health Insurance Plans says the average individual annual premiums from 2006 to 2007 cost $2,613, or $218 a month. While individual plans may appear cheaper, individuals have to pay the entire premium on their own. And as we mentioned earlier, those in restricted states, and older individuals with health issues, can expect to pay a lot more. "It's not uncommon to hear of people paying $10,000 to $12,000 a year," says Families USA's Stoll.
One way to keep premiums manageable is to increase your deductible (don't go beyond what you can afford to pay out each year) and skip the vision and dental coverage. Don't even try to match your former employer's lush plan. Blue Cross Blue Shield of Utah, for example, charges a young family of four living in Salt Lake City $695 a month in premiums and a $250 deductible. If they accept a deductible of $2,000, they can lower the premium to $455 a month. "Insurance should be purchased to cover sudden accidental and unintended losses," says Harding CEO of Utah Insurance Solutions. "With low-deductible plans and maintenance policies, you are trading dollar for dollar with the insurance company over the long run."
While there are some benefits you can live without, others are important. A maternity rider is one of them, advises Bret Harding, an individual health-insurance broker from Utah Health Insurance Brokers. "I advise all of my female clients to get one," she says. Unlike employer-sponsored plans, which usually cover birthing expenses, private plans don't unless you pay for it upfront.
Buyer Beware
Before you make your final decision, read the fine print. Make sure you're buying comprehensive coverage that will cover you should you suddenly fall ill and rack up thousands in hospitals bills. Insurers have been known to attract customers with low teaser rates that can change after only a few months. It may cost a little more, but you should look for one that will guarantee your premiums won't rise for 12 months. And most important, go with a reputable firm. Check its claims-paying ability rating with an agency like Standard & Poor's or Moody's.
Buying health insurance may not top your list of fun things to do, but that doesn't mean it's unimportant. After all, there are few things in life more valuable than good health.
Visit Utah Insurance Solutions Today to Find Affordable Utah Health Insurance Plans: www.UtahInsuranceSolutions.com.
ONE OF THE hardest things about leaving a job is walking away from the benefits package. Once you're out on your own — whether you're starting your own business, working for a small employer that offers no coverage or suddenly find yourself among the ranks of the unemployed — the reality is the same: You must cough up a lot of dough for what will feel like inferior health coverage.
Before you start your search, brace yourself. The Utah health-insurance market isn't pretty, but when navigated properly can save you money in the long run!
The key, of course, is to shop around and make an informed decision that you and your pocketbook can live with. This will take some time. Experts recommend you give yourself at least 60 days to examine your options and apply for a policy. There's a lot more to it than when your former employer asked you to check a box electing a managed-care plan or a preferred provider organization.
Here's how to navigate the private Utah health-insurance industry.
How it Works
If you thought buying life insurance was tough, just wait until you shop around for health coverage. Unlike an employer-sponsored plan that has to accept everyone at the same price, private plans in most states are underwritten based on your age, weight, smoking status and health history. In some cases, applicants will even have to undergo a medical exam. A preexisting condition as common as asthma could be enough for an insurer to hike your premiums, while a history of anxiety or depression might cause an underwriter to think twice. And if you have a history of heart disease, cancer or diabetes, you could be out of luck entirely. A plan could either be too expensive or include a rider that excludes the very ailment for which you need coverage. "If they look at your application and see something they don't like, a $600 [a month] policy could go to $850," says Bret Harding, chief executive of online insurance broker Utah Insurance Solutions.
You should also know that health insurance is regulated at the state level. In places like New York, New Jersey and Vermont, insurers must offer coverage to every applicant, regardless of age or health status. This egalitarian approach sounds great — until you see the premiums. Even young healthy men, who are the cheapest to insure, could be charged as much as $1,000 a month, says Bland. In other states, such as California and Utah, there are fewer restrictions on the insurers, and premiums tend to be more reasonable for young people and pricier for older folks. The problem in these regions is that insurers can outright refuse to provide coverage. In such cases, consumers can buy pricy policies from a state high-risk pool. But it won't come cheap, and it could exclude pre-existing conditions. For more information on the rules for your area, contact your state insurance commission's Web site.
How to Buy It
The quickest way to get a handle on your options is to look for policies on Web sites such as UtahInsuranceSolutions.com. If you need a little more hand holding, you should contact a local health insurance broker. Just make sure you find someone who represents a lot of companies and understands the underwriting standards for each insurer. The last thing you want is to be rejected from a plan that doesn't typically cover someone with your health profile. Not only is it a waste of time, but it could also raise a red flag when you apply to other insurers. An informed broker could steer you away from such insurers.
And since group coverage tends to be cheaper, don't forget to check with your professional trade association for coverage. The Writers Guild and the Actors' Equity Association are two examples of groups that offer their members health insurance. (In most states, however, people in their 20s and 30s may find cheaper coverage through an individual plan.) And for those starting a business: Most states allow as few as two employees to buy a small group policy.
The CostAccording to the Kaiser Family Foundation, a Menlo Park, Calif.-based nonprofit focused on health-care policy, the average employee paid $58 a month for health insurance in 2007. Employers picked up the rest — a $3,785 tab. How much can an individual expect to pay? America's Health Insurance Plans says the average individual annual premiums from 2006 to 2007 cost $2,613, or $218 a month. While individual plans may appear cheaper, individuals have to pay the entire premium on their own. And as we mentioned earlier, those in restricted states, and older individuals with health issues, can expect to pay a lot more. "It's not uncommon to hear of people paying $10,000 to $12,000 a year," says Families USA's Stoll.
One way to keep premiums manageable is to increase your deductible (don't go beyond what you can afford to pay out each year) and skip the vision and dental coverage. Don't even try to match your former employer's lush plan. Blue Cross Blue Shield of Utah, for example, charges a young family of four living in Salt Lake City $695 a month in premiums and a $250 deductible. If they accept a deductible of $2,000, they can lower the premium to $455 a month. "Insurance should be purchased to cover sudden accidental and unintended losses," says Harding CEO of Utah Insurance Solutions. "With low-deductible plans and maintenance policies, you are trading dollar for dollar with the insurance company over the long run."
While there are some benefits you can live without, others are important. A maternity rider is one of them, advises Bret Harding, an individual health-insurance broker from Utah Health Insurance Brokers. "I advise all of my female clients to get one," she says. Unlike employer-sponsored plans, which usually cover birthing expenses, private plans don't unless you pay for it upfront.
Buyer Beware
Before you make your final decision, read the fine print. Make sure you're buying comprehensive coverage that will cover you should you suddenly fall ill and rack up thousands in hospitals bills. Insurers have been known to attract customers with low teaser rates that can change after only a few months. It may cost a little more, but you should look for one that will guarantee your premiums won't rise for 12 months. And most important, go with a reputable firm. Check its claims-paying ability rating with an agency like Standard & Poor's or Moody's.
Buying health insurance may not top your list of fun things to do, but that doesn't mean it's unimportant. After all, there are few things in life more valuable than good health.
Visit Utah Insurance Solutions Today to Find Affordable Utah Health Insurance Plans: www.UtahInsuranceSolutions.com.
Tuesday, May 12, 2009
Utah Life insurance Buying Tips - Ask Yourself These Questions?
By Bret Harding
Buying Life Insurance in Utah is one of those necessary things that you may have to force yourself to do at some time during your busy schedule. There never seems to be a right time or convenient time to buy life insurance. We, however, you should give the subject ample thought and then take action.
What will happen to your family when you die? Would they be provided for? Life Insurance is the solution and we can help.Compare Multiple Quotes from Highly Ranked Carriers and Save up to 70%! Getting your quote is easy and FREE. Call or visit Utah Insurance Solutions: http://UtahInsuranceSolutions.com, or call: 801-372-2647.
Some people don't want to take the time to think about buying life insurance because when you do so you must think about death, or to be more accurate, what would happen to your loved ones after your untimely demise. I would urge you to put away the emotional considerations and take the time to open your mind and kindly and responsibly give this vitally important subject your capable consideration.
When considering life insurance buying try to arrive at the amount that best fits your particular situation. In order to arrive at an intelligent and accurate decision as to this amount you need to ask yourself some very important questions:
Buying Life Insurance in Utah is one of those necessary things that you may have to force yourself to do at some time during your busy schedule. There never seems to be a right time or convenient time to buy life insurance. We, however, you should give the subject ample thought and then take action.
What will happen to your family when you die? Would they be provided for? Life Insurance is the solution and we can help.Compare Multiple Quotes from Highly Ranked Carriers and Save up to 70%! Getting your quote is easy and FREE. Call or visit Utah Insurance Solutions: http://UtahInsuranceSolutions.com, or call: 801-372-2647.
Some people don't want to take the time to think about buying life insurance because when you do so you must think about death, or to be more accurate, what would happen to your loved ones after your untimely demise. I would urge you to put away the emotional considerations and take the time to open your mind and kindly and responsibly give this vitally important subject your capable consideration.
When considering life insurance buying try to arrive at the amount that best fits your particular situation. In order to arrive at an intelligent and accurate decision as to this amount you need to ask yourself some very important questions:
- Am I buying a life insurance policy to cover my funeral expense or do I want to pay for this out of accumulated cash? Life insurance is the advisable path to take because of cost and tax considerations.
- Should I use this life insurance policy to provide an income for my family? There are many advantages to providing an income through life insurance. There are tax advantages. You can set up the income in such a way that the beneficiaries cannot outlive it.
- Should I provide a lump sum to my family? If so why. The answer to this may vary. Give consideration to the experience of the beneficiary in handling large sums of money.
- Do I want to set up a charitable fund or grant for an organization that I hold near and dear? Let us assume that life has been good to you. You have fulfilled all or most of your dreams. You have seen your children face life with confidence and victory in most things they have tackled, and whenever they were not victorious they were able to turn their losses into a learning experience, thus in the end winning. You see other people that need help. You do as much as you can while you are alive. Do You want this to continue even after you die. You can set up a grant, or charitable fund through life insurance.
- How about a college fund for your children or grandchildren? Have you thought about this? Is this a good idea? What is the best way to do this. Is life insurance a viable vehicle to use for this fund...if so, why?
Should I set up a pension fund for myself. Can a life insurance company assist me in this matter. What about a joint retirement income with a wife and husband that neither can outlive? Is this an intelligent consideration.
Give these things serious thought when doing your life insurance buying. May be you should discuss these questions with your spouse or significant other too!
Call or visit Utah Insurance Solutions: http://UtahInsuranceSolutions.com, or call: 801-372-2647.
Monday, April 20, 2009
Utah Group Insurance Deals
Utahan’s who are looking for a good deal and group or individual health insurance now is a great time to look at Humana. Humana is a relatively new player to the Utah group insurance market, and they are doing some great things in the Utah market. I recommend giving Bret Harding a call to get a fast Humana quote for your group insurance in Utah. Ph. 801-372-2647, or visit: http://www.UtahInsuranceSolutions.com.
Friday, April 3, 2009
Five Tips for First-Time Life Insurance Buyers
Five Tips for First-Time Life Insurance Buyers
By: Utah Life Insurance Agents
Looking to buy life insurance for the first time? If so, you're probably asking yourself questions such as "How much do I need?" and "What kind of policy is best?" There's no question buying life insurance for the first time, like any other new experience, can be more than a bit daunting. That’s why Utah Life Insurance Agents created “The Five Most Important Tips for First Time Buyers” and we hope this article will make the process smoother, eliminating frustrating false starts and unnecessary bumps in the road.
Five Tips for the First-Time Buyers:
1. Understand Why You Need
ItWhile most people may need life insurance at some point in their life, don't buy a policy just because you heard it was a good idea. Life insurance is designed to provide families with financial security in the event of the death of a spouse or parent. Life insurance protection can help pay for mortgages, a college education, help to fund retirement, provide charitable bequests and of course is a key element in estate planning. In short, if others depend on your income for support, you should strongly consider life insurance. Even if you don't have any of these needs immediately, you still may want to consider purchasing a small "starter" policy, if you anticipate you will have them in the future. The reason: the younger you are, the less expensive life insurance will be.
2. Determine the Amount of Coverage You Need
The amount of money your family or heirs will receive after your death is called a death benefit. To determine the proper amount of life insurance an online calculator, like the one available at this site, can be helpful. You can also get a ballpark figure using any number of formulas. The easiest way is to simply take your annual salary and multiply by 8. A more detailed method is to add up the monthly expense your family will incur after your death. Remember to include the one-time expenses at death and the ongoing expenses such as a mortgage or school bills. Take the ongoing expenses and divide by .07.That indicates you'll want a lump sum of money earning approximately 7% each year to pay those ongoing expenses. Add to that amount any money you'll need to cover one-time expenses and you'll have a rough estimate of the amount of life insurance you need.
As useful as calculators and rough estimates are, there are some things they don't do.
They cannot provide you with any final answers. Calculators only allow you to perform "hypotheticals," recalculating and generating new results as you make and input new assumptions. Using these tools and educating yourself on the workings of life insurance and other financial products, however, can help you feel more comfortable when discussing your needs with such professional Utah Life Insurance Agent.
3. Find the Right Type of Policy
Once you've got an estimate of how much insurance you'll need, it's time to think about the type of policy that best fits your needs. Today life insurance comes in many varieties, but there are four basic types term, whole life, universal life, and variable life. As a first-time buyer, one will more than likely fit your needs.
Term Life InsuranceAs its name implies, term insurance provides life insurance protection for a specific period of years. Benefits can be used to help pay off mortgages and other outstanding debts in the event of a premature death. Generally the least expensive form of life insurance, term provides pure insurance protection only. It does not accumulate cash value, and generally does not receive dividends.
Term may be an ideal choice when you need life insurance coverage for a well-defined period of time. It can be used to protect needs that last for a predictable period, such as a student loan or mortgage. People in their 20s and 30s often purchase a term policy and later convert it to a permanent plan (see Whole Life, below). The conversion privilege in their term policies guarantees their insurability at a later date-even if they become uninsurable.
Utah Life Insurance Agents has access to a variety of term policies available, including five-, ten-, and 20-year policies.
Whole LifeIn contrast to term insurance, whole life, also known as permanent insurance, protects you throughout your lifetime, from the day you purchase the policy until you die, as long as you pay the premiums. Another difference between the two is that permanent insurance builds cash value. Through policy loans, you can access the cash values and use them for a host of purposes such as education funding and supplemental retirement income. However, policy loans against the cash value accrue interest and reduce the death benefit and the cash value by the amount of the outstanding loan plus interest. Guaranteed for life, your policy will be renewed every year, regardless of your health for as long as you live, again, as long as required premiums are paid.
Permanent policies are also eligible to receive dividends, a portion of the company's surplus that is distributed to the owners of participating policies. (Dividends can be taken in cash, used to reduce the premium, left to accumulate at interest, or used to purchase paid-up additional insurance. Dividends are not guaranteed.) Whole life can provide a permanent solution to several financial concerns including:
· Mortgage protection: Benefits can be used to help pay off mortgages and other outstanding debts in the event of a premature death.
· Estate preservation: Whole life insurance can provide funds to cover estate expenses and help avoid the need to sell assets and or borrow money to cover these expenses.
· Retirement funding: Cash values can be accessed through policy loans or surrenders to supplement a retirement income. Loans will reduce the death benefit.
· Charitable giving: A whole life insurance policy can enable you to make a significant donation to your favorite charity upon your death.
· Business needs: Whole life can be an attractive executive and employee benefit and a means to assure a business's financial future.
Utah Life Insurance Agents offers many permanent life insurance policies, including Modified Premium Whole Life, and Survivorship Whole Life.
Universal LifeUniversal life also provides permanent life insurance protection and access to cash values that grow tax-deferred. Universal Life differs from whole life in its flexibility that enables you to choose the amount of protection that best suits your family or business. With Universal Life, you can increase or decrease your coverage, as your insurance needs change and control the amount and frequency of premium payments. The policy can also be customized with various riders to fit your lifestyle.
Variable Life*Variable universal life insurance is a type of flexible premium, permanent life insurance policy that allow the policy owners to have premium dollars allocated to a variety of investment options. Variable universal life insurance generally provides a federal tax-free death benefit, and is accessible through policy loans and/or withdrawals. Also, loans against the cash value and withdrawals may reduce death benefit and the cash value. If the policy is designated as a Modified Endowment Contract, withdrawals taken prior to age 591/2 may be subject to a 10% IRS penalty and surrender changes may apply. Additional taxes may apply to policies designated as a modified endowment. The product prospectus contains this information in details.
There are risks associated with investing in variable universal life insurance policies. Please be aware that assets allocated to the Investment Divisions are subject to market risks and will fluctuate in value. Please be aware there are fees and charges associated with the contract. Variable universal life insurance policies are sold by prospectus only through properly licensed Registered Representative.
4. Consult an AgentAgents provide an invaluable service. First, an agent can help you factor in the other "human' elements into your insurance equations to help you determine the right amount of insurance. The relationship you develop with an agent can last a lifetime. Second, an agent can help you update your coverage as your needs change. They can help you guide you through a lifetime of financial decisions, giving you one less thing to worry about.
5. Increase Your VocabularyAny discussion of insurance will probably include words such as cash value, premium, dividends, death benefit and more. To discuss life insurance knowledgeably, it will help to understand the terms. Below is a brief summary of some common terms. This site offers a complete glossary of insurance terms.
· Cash Value: In a whole life (also called "permanent") life insurance policy, this is the money that can accumulate in the policy.
· Dividends: A portion of the company's surplus that is distributed to the owners of participating policies. Dividends are not guaranteed.
· Mutual company: An insurance company which has no capital stock or stockholders, but is instead owned by its policyowners.
· Premium: In insurance, the periodic payment required to keep a specific policy in force.
For more information please call Bret Harding Ph. 801-372-2647, or visit: http://www.UtahLifeInsuranceAgents.com.
By: Utah Life Insurance Agents
Looking to buy life insurance for the first time? If so, you're probably asking yourself questions such as "How much do I need?" and "What kind of policy is best?" There's no question buying life insurance for the first time, like any other new experience, can be more than a bit daunting. That’s why Utah Life Insurance Agents created “The Five Most Important Tips for First Time Buyers” and we hope this article will make the process smoother, eliminating frustrating false starts and unnecessary bumps in the road.
Five Tips for the First-Time Buyers:
1. Understand Why You Need
ItWhile most people may need life insurance at some point in their life, don't buy a policy just because you heard it was a good idea. Life insurance is designed to provide families with financial security in the event of the death of a spouse or parent. Life insurance protection can help pay for mortgages, a college education, help to fund retirement, provide charitable bequests and of course is a key element in estate planning. In short, if others depend on your income for support, you should strongly consider life insurance. Even if you don't have any of these needs immediately, you still may want to consider purchasing a small "starter" policy, if you anticipate you will have them in the future. The reason: the younger you are, the less expensive life insurance will be.
2. Determine the Amount of Coverage You Need
The amount of money your family or heirs will receive after your death is called a death benefit. To determine the proper amount of life insurance an online calculator, like the one available at this site, can be helpful. You can also get a ballpark figure using any number of formulas. The easiest way is to simply take your annual salary and multiply by 8. A more detailed method is to add up the monthly expense your family will incur after your death. Remember to include the one-time expenses at death and the ongoing expenses such as a mortgage or school bills. Take the ongoing expenses and divide by .07.That indicates you'll want a lump sum of money earning approximately 7% each year to pay those ongoing expenses. Add to that amount any money you'll need to cover one-time expenses and you'll have a rough estimate of the amount of life insurance you need.
As useful as calculators and rough estimates are, there are some things they don't do.
They cannot provide you with any final answers. Calculators only allow you to perform "hypotheticals," recalculating and generating new results as you make and input new assumptions. Using these tools and educating yourself on the workings of life insurance and other financial products, however, can help you feel more comfortable when discussing your needs with such professional Utah Life Insurance Agent.
3. Find the Right Type of Policy
Once you've got an estimate of how much insurance you'll need, it's time to think about the type of policy that best fits your needs. Today life insurance comes in many varieties, but there are four basic types term, whole life, universal life, and variable life. As a first-time buyer, one will more than likely fit your needs.
Term Life InsuranceAs its name implies, term insurance provides life insurance protection for a specific period of years. Benefits can be used to help pay off mortgages and other outstanding debts in the event of a premature death. Generally the least expensive form of life insurance, term provides pure insurance protection only. It does not accumulate cash value, and generally does not receive dividends.
Term may be an ideal choice when you need life insurance coverage for a well-defined period of time. It can be used to protect needs that last for a predictable period, such as a student loan or mortgage. People in their 20s and 30s often purchase a term policy and later convert it to a permanent plan (see Whole Life, below). The conversion privilege in their term policies guarantees their insurability at a later date-even if they become uninsurable.
Utah Life Insurance Agents has access to a variety of term policies available, including five-, ten-, and 20-year policies.
Whole LifeIn contrast to term insurance, whole life, also known as permanent insurance, protects you throughout your lifetime, from the day you purchase the policy until you die, as long as you pay the premiums. Another difference between the two is that permanent insurance builds cash value. Through policy loans, you can access the cash values and use them for a host of purposes such as education funding and supplemental retirement income. However, policy loans against the cash value accrue interest and reduce the death benefit and the cash value by the amount of the outstanding loan plus interest. Guaranteed for life, your policy will be renewed every year, regardless of your health for as long as you live, again, as long as required premiums are paid.
Permanent policies are also eligible to receive dividends, a portion of the company's surplus that is distributed to the owners of participating policies. (Dividends can be taken in cash, used to reduce the premium, left to accumulate at interest, or used to purchase paid-up additional insurance. Dividends are not guaranteed.) Whole life can provide a permanent solution to several financial concerns including:
· Mortgage protection: Benefits can be used to help pay off mortgages and other outstanding debts in the event of a premature death.
· Estate preservation: Whole life insurance can provide funds to cover estate expenses and help avoid the need to sell assets and or borrow money to cover these expenses.
· Retirement funding: Cash values can be accessed through policy loans or surrenders to supplement a retirement income. Loans will reduce the death benefit.
· Charitable giving: A whole life insurance policy can enable you to make a significant donation to your favorite charity upon your death.
· Business needs: Whole life can be an attractive executive and employee benefit and a means to assure a business's financial future.
Utah Life Insurance Agents offers many permanent life insurance policies, including Modified Premium Whole Life, and Survivorship Whole Life.
Universal LifeUniversal life also provides permanent life insurance protection and access to cash values that grow tax-deferred. Universal Life differs from whole life in its flexibility that enables you to choose the amount of protection that best suits your family or business. With Universal Life, you can increase or decrease your coverage, as your insurance needs change and control the amount and frequency of premium payments. The policy can also be customized with various riders to fit your lifestyle.
Variable Life*Variable universal life insurance is a type of flexible premium, permanent life insurance policy that allow the policy owners to have premium dollars allocated to a variety of investment options. Variable universal life insurance generally provides a federal tax-free death benefit, and is accessible through policy loans and/or withdrawals. Also, loans against the cash value and withdrawals may reduce death benefit and the cash value. If the policy is designated as a Modified Endowment Contract, withdrawals taken prior to age 591/2 may be subject to a 10% IRS penalty and surrender changes may apply. Additional taxes may apply to policies designated as a modified endowment. The product prospectus contains this information in details.
There are risks associated with investing in variable universal life insurance policies. Please be aware that assets allocated to the Investment Divisions are subject to market risks and will fluctuate in value. Please be aware there are fees and charges associated with the contract. Variable universal life insurance policies are sold by prospectus only through properly licensed Registered Representative.
4. Consult an AgentAgents provide an invaluable service. First, an agent can help you factor in the other "human' elements into your insurance equations to help you determine the right amount of insurance. The relationship you develop with an agent can last a lifetime. Second, an agent can help you update your coverage as your needs change. They can help you guide you through a lifetime of financial decisions, giving you one less thing to worry about.
5. Increase Your VocabularyAny discussion of insurance will probably include words such as cash value, premium, dividends, death benefit and more. To discuss life insurance knowledgeably, it will help to understand the terms. Below is a brief summary of some common terms. This site offers a complete glossary of insurance terms.
· Cash Value: In a whole life (also called "permanent") life insurance policy, this is the money that can accumulate in the policy.
· Dividends: A portion of the company's surplus that is distributed to the owners of participating policies. Dividends are not guaranteed.
· Mutual company: An insurance company which has no capital stock or stockholders, but is instead owned by its policyowners.
· Premium: In insurance, the periodic payment required to keep a specific policy in force.
For more information please call Bret Harding Ph. 801-372-2647, or visit: http://www.UtahLifeInsuranceAgents.com.
Saturday, March 7, 2009
Must Know Tips for Choosing a Group Health Insurance Plan in Utah.
In a perfect world, every company would offer every employee health insurance. In our world of ever increasing health insurance premiums it is a real struggle. To be sure, some of the barriers that long kept small businesses from getting insurance have been removed: Laws now prohibit insurance companies from discriminating in the small-group market and against individual employees based on health history. But cost is still a problem. Small businesses typically pay more for insurance than big businesses do and get significantly less for their money. No surprise, then, that the share of small businesses providing insurance has dropped since 1999, according to the Kaiser Family Foundation. Among companies with fewer than 10 employees, just 45 percent now offer health plans.
Still, there are good reasons to offer health insurance. Not only is a good health plan a powerful tool for recruiting and retaining talented staff, but it also stands to reason that a healthier team is a more productive team. Before you pay a visit to an agent, read these pages and study the resources provided at the end. And remember: Whatever you pay this year, you're bound to pay more next year. The Kaiser survey reports that companies with fewer than 200 employees have seen premiums rise an average of 10.4 percent per year since 1999. Says Bret Harding, a group health insurance broker in Salt Lake City: "I tell my clients to budget for an increase of at least 10 percent each year."
Finding the Right Plan
1. Determine Your Budget and Your Needs
There are two schools of thought on where to begin: One says it comes down to cost; the other says it depends on what your competition is offering. There's no consensus on how much a business should budget for health care. According to a survey by the National Federation of Independent Business, or NFIB, nearly half of small businesses that provide insurance spend at least 7.5 percent of payroll on health care. But a quarter of those companies spend more than 15 percent. If you're going after highly paid, skilled workers, you will want to at least match the competition, says Jackie Breslin, a director at TriNet, an HR outsourcing firm.
Early-stage companies with a lot of young workers can often get away with covering employees but not their families. With more mature companies that need to retain older employees, Breslin says, "we spread those dollars differently. Family coverage is important."
Also, consider how much you want your employees to contribute in both premiums and out-of-pocket expenses. Most insurers will require you to cover at least half the premium, to encourage the youngest and healthiest among your staff to stay with your group (and dilute the risk inherent in an older, sicker population). Beyond that, it's really a value judgment. However, keep in mind that most carriers will decline to write a policy if the plan doesn't attract at least three-quarters of your eligible employees, says Bret Harding a group health insurance broker in Salt Lake City.
2. Understand Your Options
Good insurance agents will guide you through the maze of possibilities, but it's important to recognize that their interests are not always aligned with yours, because they're paid by commissions embedded in the premiums. Nearly half of the small-business respondents to the NFIB survey reported that their representatives never mentioned high-deductible plans, which have lower premiums (and thus generate smaller commissions). Have a sense of what your options are before you sit down to discuss them with the agent.
Typically, insurance plans come in four flavors, though the distinctions are blurring, says Marian Mulkey, senior program officer at the California HealthCare Foundation, a nonprofit advocacy group for health care reform. In general, the higher the premiums, the lower the out-of-pocket costs.
Preferred Provider Organizations, or PPOs, assemble a broad network of doctors and hospitals but also let patients see doctors outside the network, normally with higher out-of-pocket costs. These plans cover about two-thirds of the employees at large businesses but only about one-third at the smallest businesses, probably because these plans are usually the most expensive. The Kaiser Family Foundation says the average annual PPO premium for individual coverage at small businesses was $4,881 in 2007, while the average deductible was $667.
Health Maintenance Organizations, or HMOs, provide an umbrella of care. A patient chooses a primary care physician, who can refer a patient to an in-network specialist. The insurer pays for everything apart from a co-payment for each service. Though often derided for the control they exercise over patients' care, they have become the vehicle of choice for the most comprehensive coverage, Mulkey says. That has made them more expensive over time; average annual premiums across all companies reached $4,299 for individuals; the average deductible was $401.
Point-of-Service plans meld elements of HMOs and PPOs. As in an HMO, a patient has a primary care physician who makes referrals. As in a PPO, those referrals can be out-of-network, though patients pay for service up front and seek (partial) reimbursement later. The result is that the average premium cost to small businesses was closer to that of an HMO -- $4,358 for individual coverage -- while the average deductible, at $751, was closer to that of a PPO.
High-Deductible Health Plans are a relatively recent innovation, usually offered in tandem with a Health Savings Account, funded by the employee or the employer, or a Health Reimbursement Arrangement, funded by the employer. Deductibles under these plans can reach $5,000, but the premiums drop significantly: According to Kaiser, the average cost for a single person was $3,881; the average deductible was $1,865.
There is no rule about which plan best serves which group. "It's all about tradeoffs," Mulkey says. Make sure, for example, to consider employees' existing relations with providers.
Cost has several dimensions, too. There's total premium and the employer's share versus the employee's. And there are also out-of-pocket costs for employees. Those include the deductible and co-insurance ratio (the share the insurance company picks up once the deductible is met), as well as co-payments for doctor visits and drugs. All of these things tend to affect the premium, but not greatly. Typically, you only see a big change when you make a giant change in the deductible, especially when it gets above $2,000.
3. Pick Your Vendor
Most small-group health insurance are sold through agents. A so-called independent agent sells policies for many carriers, whereas a "captive" agent represents just one. Unless you're determined to go with a particular insurer, you're best off comparison shopping with an independent.
Agents seldom compete on price; so you will have to rely on more subjective factors: experience, demeanor, and the menu of value added services that each broker offers. Many brokers will offer some type of free services in order to differentiate themselves (i.e. discount prescriptions card, human resource consulting).
Insist that your agent show you not just a variety of plans from one insurer but also similar plans across carriers. A good agent will conduct employee education, run interference with the insurer when you or your employees have customer service issues, and reevaluate the policy every year.
You may, depending on your state, find attractively priced insurance through purchasing alliances. These organizations are designed to lower insurance costs by pooling risk. In practice, the cost savings tend to get eaten up by the additional administrative costs of running the alliance. That said, they allow a small business to offer employees more than one type of plan.
Finally, professional employer organizations serve as outsourced HR departments that manage payroll, compliance, and benefits. They possess the leverage of a single huge company in negotiating benefits. You will pay anywhere from 3 percent to 10 percent of payroll for the services of a PEO.
Three Ways to Save Money
1. Many brokers recommend switching to a high-deductible health plan coupled with a “deductible buy-down” that’s funded by the savings in premiums. Employees pay the same deductible as under the old plan, and the employer “buys down” the rest. The employer is betting that employees won’t spend all their deductible dollars. “They invariably use just 30 to 40 percent of the money budgeted,” broker Denny Ebersole says.
2. Set up a wellness program that encourages healthful behavior. Scott Leavitt, who runs My Wellchoice+, a national wellness program for small businesses, says claims drop substantially as a result—so rates don’t go up as fast. The plans typically cost $3 per employee per month.
3. If you can’t provide insurance, your employees may be able to buy individual policies through a trade association. This won’t be as affordable as group coverage, but both the prices and the service will be better than if employees approach an insurer on their own.
Resources:
For a detailed guide to health insurance for small businesses, go to healthcoverageguide.org.
For info on state regulations, see healthinsuranceinfo.net and statehealthfacts.org.
Visit ncqa.org for free report cards on insurance plans and consumerhealthratings.com for links to free services that rate health care providers.
Learn more about choosing a group health insurance plan in Utah visit: http://www.UtahInsuranceSolutions.com.
Still, there are good reasons to offer health insurance. Not only is a good health plan a powerful tool for recruiting and retaining talented staff, but it also stands to reason that a healthier team is a more productive team. Before you pay a visit to an agent, read these pages and study the resources provided at the end. And remember: Whatever you pay this year, you're bound to pay more next year. The Kaiser survey reports that companies with fewer than 200 employees have seen premiums rise an average of 10.4 percent per year since 1999. Says Bret Harding, a group health insurance broker in Salt Lake City: "I tell my clients to budget for an increase of at least 10 percent each year."
Finding the Right Plan
1. Determine Your Budget and Your Needs
There are two schools of thought on where to begin: One says it comes down to cost; the other says it depends on what your competition is offering. There's no consensus on how much a business should budget for health care. According to a survey by the National Federation of Independent Business, or NFIB, nearly half of small businesses that provide insurance spend at least 7.5 percent of payroll on health care. But a quarter of those companies spend more than 15 percent. If you're going after highly paid, skilled workers, you will want to at least match the competition, says Jackie Breslin, a director at TriNet, an HR outsourcing firm.
Early-stage companies with a lot of young workers can often get away with covering employees but not their families. With more mature companies that need to retain older employees, Breslin says, "we spread those dollars differently. Family coverage is important."
Also, consider how much you want your employees to contribute in both premiums and out-of-pocket expenses. Most insurers will require you to cover at least half the premium, to encourage the youngest and healthiest among your staff to stay with your group (and dilute the risk inherent in an older, sicker population). Beyond that, it's really a value judgment. However, keep in mind that most carriers will decline to write a policy if the plan doesn't attract at least three-quarters of your eligible employees, says Bret Harding a group health insurance broker in Salt Lake City.
2. Understand Your Options
Good insurance agents will guide you through the maze of possibilities, but it's important to recognize that their interests are not always aligned with yours, because they're paid by commissions embedded in the premiums. Nearly half of the small-business respondents to the NFIB survey reported that their representatives never mentioned high-deductible plans, which have lower premiums (and thus generate smaller commissions). Have a sense of what your options are before you sit down to discuss them with the agent.
Typically, insurance plans come in four flavors, though the distinctions are blurring, says Marian Mulkey, senior program officer at the California HealthCare Foundation, a nonprofit advocacy group for health care reform. In general, the higher the premiums, the lower the out-of-pocket costs.
Preferred Provider Organizations, or PPOs, assemble a broad network of doctors and hospitals but also let patients see doctors outside the network, normally with higher out-of-pocket costs. These plans cover about two-thirds of the employees at large businesses but only about one-third at the smallest businesses, probably because these plans are usually the most expensive. The Kaiser Family Foundation says the average annual PPO premium for individual coverage at small businesses was $4,881 in 2007, while the average deductible was $667.
Health Maintenance Organizations, or HMOs, provide an umbrella of care. A patient chooses a primary care physician, who can refer a patient to an in-network specialist. The insurer pays for everything apart from a co-payment for each service. Though often derided for the control they exercise over patients' care, they have become the vehicle of choice for the most comprehensive coverage, Mulkey says. That has made them more expensive over time; average annual premiums across all companies reached $4,299 for individuals; the average deductible was $401.
Point-of-Service plans meld elements of HMOs and PPOs. As in an HMO, a patient has a primary care physician who makes referrals. As in a PPO, those referrals can be out-of-network, though patients pay for service up front and seek (partial) reimbursement later. The result is that the average premium cost to small businesses was closer to that of an HMO -- $4,358 for individual coverage -- while the average deductible, at $751, was closer to that of a PPO.
High-Deductible Health Plans are a relatively recent innovation, usually offered in tandem with a Health Savings Account, funded by the employee or the employer, or a Health Reimbursement Arrangement, funded by the employer. Deductibles under these plans can reach $5,000, but the premiums drop significantly: According to Kaiser, the average cost for a single person was $3,881; the average deductible was $1,865.
There is no rule about which plan best serves which group. "It's all about tradeoffs," Mulkey says. Make sure, for example, to consider employees' existing relations with providers.
Cost has several dimensions, too. There's total premium and the employer's share versus the employee's. And there are also out-of-pocket costs for employees. Those include the deductible and co-insurance ratio (the share the insurance company picks up once the deductible is met), as well as co-payments for doctor visits and drugs. All of these things tend to affect the premium, but not greatly. Typically, you only see a big change when you make a giant change in the deductible, especially when it gets above $2,000.
3. Pick Your Vendor
Most small-group health insurance are sold through agents. A so-called independent agent sells policies for many carriers, whereas a "captive" agent represents just one. Unless you're determined to go with a particular insurer, you're best off comparison shopping with an independent.
Agents seldom compete on price; so you will have to rely on more subjective factors: experience, demeanor, and the menu of value added services that each broker offers. Many brokers will offer some type of free services in order to differentiate themselves (i.e. discount prescriptions card, human resource consulting).
Insist that your agent show you not just a variety of plans from one insurer but also similar plans across carriers. A good agent will conduct employee education, run interference with the insurer when you or your employees have customer service issues, and reevaluate the policy every year.
You may, depending on your state, find attractively priced insurance through purchasing alliances. These organizations are designed to lower insurance costs by pooling risk. In practice, the cost savings tend to get eaten up by the additional administrative costs of running the alliance. That said, they allow a small business to offer employees more than one type of plan.
Finally, professional employer organizations serve as outsourced HR departments that manage payroll, compliance, and benefits. They possess the leverage of a single huge company in negotiating benefits. You will pay anywhere from 3 percent to 10 percent of payroll for the services of a PEO.
Three Ways to Save Money
1. Many brokers recommend switching to a high-deductible health plan coupled with a “deductible buy-down” that’s funded by the savings in premiums. Employees pay the same deductible as under the old plan, and the employer “buys down” the rest. The employer is betting that employees won’t spend all their deductible dollars. “They invariably use just 30 to 40 percent of the money budgeted,” broker Denny Ebersole says.
2. Set up a wellness program that encourages healthful behavior. Scott Leavitt, who runs My Wellchoice+, a national wellness program for small businesses, says claims drop substantially as a result—so rates don’t go up as fast. The plans typically cost $3 per employee per month.
3. If you can’t provide insurance, your employees may be able to buy individual policies through a trade association. This won’t be as affordable as group coverage, but both the prices and the service will be better than if employees approach an insurer on their own.
Resources:
For a detailed guide to health insurance for small businesses, go to healthcoverageguide.org.
For info on state regulations, see healthinsuranceinfo.net and statehealthfacts.org.
Visit ncqa.org for free report cards on insurance plans and consumerhealthratings.com for links to free services that rate health care providers.
Learn more about choosing a group health insurance plan in Utah visit: http://www.UtahInsuranceSolutions.com.
Monday, March 2, 2009
7 Cost Saving Tips for Utah Group Health Insurance?
Let Utah Insurance Solutions help you find a better way to cut costs in a down economy. Has your broker sat down with you recently to recommend cost cutting strategies for your company during this down economy? Well here some cost cutting strategies that we walk through with our clients:
1. Insurance premiums are partly bases on how risky your insurance carrier thinks you are. Utah Insurance Solutions helps you fend off rate hikes by challenging the insurance carrier based on our vast knowledge of the insurance industry. If we can’t negotiate a favorable rate we will explore more cost-effective carriers.
2. Consider reducing the benefits for employees, spouses, and partners who have access to coverage under their own employers’ plans.
3. Pay employees to opt out of your health plan. Many times employees can get individual health insurance coverage for a fraction of the group insurance cost; this is especially true if the employee is healthy. Utah Insurance Solutions provides each of it groups with a customized website that provides instant access to voluntary health insurance products.
4. Consider cutting your current RX plan out and replacing it with a “Pacific Benefits Health Card” from Utah Insurance Solutions. The Pacific Health Benefits Card is offered exclusively to Utah Insurance Solutions groups as a free service. The card enables employee’s to receive major discounts on: drug prescription, dental care, vision care, legal services, health and wellness programs, and hearing aids.
5. Lose what you don’t use! Opt out of providers cookie-cutter plans, bundled packages that are load with extra fee’s and benefits that you are probably not even aware of, and therefore not using! Consider rejecting coverage for specific employee assistance programs (EAP) services that few employees use, and renegotiate a lower price that includes only those few items your employees use.
6. Implement a “Long-term Strategy” to control rising employee benefit costs. At Utah Insurance Solutions we use a strategy called “Total Healthcare Management” to help our clients understand the important factors they need to be conscious of to control costs.
7. Finally, the most important cost-cutting strategy: Call Utah Insurance Solutions for a consultation!
For more information contact: Bret Harding
Email: Bret@UtahInsuranceSolutions.com
Ph. 801-372-2647
Website: www.UtahInsuranceSolutions.com
1. Insurance premiums are partly bases on how risky your insurance carrier thinks you are. Utah Insurance Solutions helps you fend off rate hikes by challenging the insurance carrier based on our vast knowledge of the insurance industry. If we can’t negotiate a favorable rate we will explore more cost-effective carriers.
2. Consider reducing the benefits for employees, spouses, and partners who have access to coverage under their own employers’ plans.
3. Pay employees to opt out of your health plan. Many times employees can get individual health insurance coverage for a fraction of the group insurance cost; this is especially true if the employee is healthy. Utah Insurance Solutions provides each of it groups with a customized website that provides instant access to voluntary health insurance products.
4. Consider cutting your current RX plan out and replacing it with a “Pacific Benefits Health Card” from Utah Insurance Solutions. The Pacific Health Benefits Card is offered exclusively to Utah Insurance Solutions groups as a free service. The card enables employee’s to receive major discounts on: drug prescription, dental care, vision care, legal services, health and wellness programs, and hearing aids.
5. Lose what you don’t use! Opt out of providers cookie-cutter plans, bundled packages that are load with extra fee’s and benefits that you are probably not even aware of, and therefore not using! Consider rejecting coverage for specific employee assistance programs (EAP) services that few employees use, and renegotiate a lower price that includes only those few items your employees use.
6. Implement a “Long-term Strategy” to control rising employee benefit costs. At Utah Insurance Solutions we use a strategy called “Total Healthcare Management” to help our clients understand the important factors they need to be conscious of to control costs.
7. Finally, the most important cost-cutting strategy: Call Utah Insurance Solutions for a consultation!
For more information contact: Bret Harding
Email: Bret@UtahInsuranceSolutions.com
Ph. 801-372-2647
Website: www.UtahInsuranceSolutions.com
Wednesday, February 25, 2009
6 Tips to Choosing Utah Health Insurance
Health insurance can be like a big ball of wax — so big, in fact, that many of us put it on the back burner rather than deal with it. But it's one of the most important decisions we have to make as consumers. Not only does it determine the care that we receive should our health take a wrong turn, but it can be the wild card in your financial plan. Roughly half of all bankruptcies filed in the United States are caused by illness and medical bills.
It’s still too early to tell if President Obama is going to be able to wrangle our healthcare system into taking on a new direction. Until then, choosing the right individual health insurance plan in Utah remains one of your most important decisions — not just for those people who are selecting from an employer's benefits menu, but for those 46.6 million uninsured Americans who are trying to put at least some coverage in place. Here is six tip’s to help you whittle down the choices and keep costs for premiums, co-pays and prescriptions from draining your bank account:
1. Location: Insurance plans and prices vary widely by state. New York, for example, has some of the most expensive individual plans in the country, largely due to its guaranteed-issue policy that requires companies to insure everyone, regardless of health. The best way to kick off your shopping is by doing a little research on your state's insurance Web site. A good site will list companies available in your area, prices for both individual and family plans, and any lower-cost options your state offers if you meet certain income requirements.
2. Write out your priorities: Do you love your current doctors? Then you should choose an insurance company that covers their service. "It's so important that you make a list of the top five things important to you, and bring them up to the broker or insurance company," advised Michelle Katz, a healthcare consultant and author of "101 Health Insurance Tips." This way you can really start to narrow things down by your needs, whether that means low premiums, customer service or the doctor you've been seeing since college.
3. Don't be afraid to use a broker: An insurance broker can be a huge help. He can do the legwork to find a well-suited insurance company, help shop for the best rates, and explain the ins and outs of your plan. You may also want to make sure he has a large "book," the industry term for the network of providers he works with. More options mean a better deal and a better fit. Also another important tip to keep in mind when choosing a broker say Bret Harding of Utah Insurance Solutions “most consumers don’t know that states regulate the rates insurance companies charge, this means that every insurance agent must quote the same rate for a particular health insurance company. Therefore, the best way to save money on a plan is to find an insurance agent that really knows the individual health insurance market and can recommend a specific plan to fit your individual needs.”
4. Consider Using a Discount Health Card Discount: Health cards can be a tremendous saving tool for consumers who actively use them, says Bret Harding with Utah Insurance Solutions. Discounted health cards don’t replace health insurance, but they can enable you to save on prescription drug costs so you can, perhaps, forgo the Rx plan that comes with many health insurance plans, and thus save you some money. Many prescription benefit cards are available for free or at a minimal cost. A great website to get an inexpensive card is: http://www.utahindividualhealthinsurance.com/.
5. Consider a Health Savings Account: An HSA is a great option for people who generally only have to whip out their insurance card once or twice a year. Maybe you go for a yearly checkup, and then to the doctor if you have the flu. It goes hand-in-hand with an insurance policy that has a high deductible ($1,100 for individuals; $2,200 for families), but low premiums. The money you save on premiums each month can be deposited into the HSA pre-tax, where it grows tax-deferred. You then use it to pay for any unexpected medical expenses. The bonus? Once you turn 65, you can withdraw any money you didn't use and spend it on anything you want, including funding your retirement.
6. Negotiate: You've chosen a plan, but you're still not home free. Bills can pop up everywhere, from services that aren't covered to doctor and hospital co-pays to costs for prescriptions. Many insurers have instituted a system of preferred pricing when it comes to prescriptions, meaning that if yours isn't generic and on a list, it could still cost a bundle. "Now, even people with employer coverage are having to be smart shoppers for prescription drugs, especially if they have a regular medication that is pretty expensive," said Lankford. Keep your costs low by shopping around (prices can vary among pharmacies — your best bet is a discount store or price club) and asking for generics whenever available. You can also have your doctor write out a prescription for a longer period of time, so you'll get a 90-day supply instead of a 30, advised Katz. The co-pay will be the same.
And don't be afraid to negotiate with your doctor if you're paying out of pocket. In a recent Harris Interactive poll, three out of five people who did so received a discount. With the cost of a single visit often tallying over $200, it's definitely worth a try.
For more information contact Bret Harding:Bret@UtahInsuranceSolutions.com
Visit: http://www.UtahInsuranceSolutions.com
Ph. 801-372-2647
It’s still too early to tell if President Obama is going to be able to wrangle our healthcare system into taking on a new direction. Until then, choosing the right individual health insurance plan in Utah remains one of your most important decisions — not just for those people who are selecting from an employer's benefits menu, but for those 46.6 million uninsured Americans who are trying to put at least some coverage in place. Here is six tip’s to help you whittle down the choices and keep costs for premiums, co-pays and prescriptions from draining your bank account:
1. Location: Insurance plans and prices vary widely by state. New York, for example, has some of the most expensive individual plans in the country, largely due to its guaranteed-issue policy that requires companies to insure everyone, regardless of health. The best way to kick off your shopping is by doing a little research on your state's insurance Web site. A good site will list companies available in your area, prices for both individual and family plans, and any lower-cost options your state offers if you meet certain income requirements.
2. Write out your priorities: Do you love your current doctors? Then you should choose an insurance company that covers their service. "It's so important that you make a list of the top five things important to you, and bring them up to the broker or insurance company," advised Michelle Katz, a healthcare consultant and author of "101 Health Insurance Tips." This way you can really start to narrow things down by your needs, whether that means low premiums, customer service or the doctor you've been seeing since college.
3. Don't be afraid to use a broker: An insurance broker can be a huge help. He can do the legwork to find a well-suited insurance company, help shop for the best rates, and explain the ins and outs of your plan. You may also want to make sure he has a large "book," the industry term for the network of providers he works with. More options mean a better deal and a better fit. Also another important tip to keep in mind when choosing a broker say Bret Harding of Utah Insurance Solutions “most consumers don’t know that states regulate the rates insurance companies charge, this means that every insurance agent must quote the same rate for a particular health insurance company. Therefore, the best way to save money on a plan is to find an insurance agent that really knows the individual health insurance market and can recommend a specific plan to fit your individual needs.”
4. Consider Using a Discount Health Card Discount: Health cards can be a tremendous saving tool for consumers who actively use them, says Bret Harding with Utah Insurance Solutions. Discounted health cards don’t replace health insurance, but they can enable you to save on prescription drug costs so you can, perhaps, forgo the Rx plan that comes with many health insurance plans, and thus save you some money. Many prescription benefit cards are available for free or at a minimal cost. A great website to get an inexpensive card is: http://www.utahindividualhealthinsurance.com/.
5. Consider a Health Savings Account: An HSA is a great option for people who generally only have to whip out their insurance card once or twice a year. Maybe you go for a yearly checkup, and then to the doctor if you have the flu. It goes hand-in-hand with an insurance policy that has a high deductible ($1,100 for individuals; $2,200 for families), but low premiums. The money you save on premiums each month can be deposited into the HSA pre-tax, where it grows tax-deferred. You then use it to pay for any unexpected medical expenses. The bonus? Once you turn 65, you can withdraw any money you didn't use and spend it on anything you want, including funding your retirement.
6. Negotiate: You've chosen a plan, but you're still not home free. Bills can pop up everywhere, from services that aren't covered to doctor and hospital co-pays to costs for prescriptions. Many insurers have instituted a system of preferred pricing when it comes to prescriptions, meaning that if yours isn't generic and on a list, it could still cost a bundle. "Now, even people with employer coverage are having to be smart shoppers for prescription drugs, especially if they have a regular medication that is pretty expensive," said Lankford. Keep your costs low by shopping around (prices can vary among pharmacies — your best bet is a discount store or price club) and asking for generics whenever available. You can also have your doctor write out a prescription for a longer period of time, so you'll get a 90-day supply instead of a 30, advised Katz. The co-pay will be the same.
And don't be afraid to negotiate with your doctor if you're paying out of pocket. In a recent Harris Interactive poll, three out of five people who did so received a discount. With the cost of a single visit often tallying over $200, it's definitely worth a try.
For more information contact Bret Harding:Bret@UtahInsuranceSolutions.com
Visit: http://www.UtahInsuranceSolutions.com
Ph. 801-372-2647
Wednesday, February 18, 2009
Monday, February 16, 2009
Health Care Savings Tip’s for a Recession
Health Care Savings Tip’s for a Recession!
by Bret Harding
Times have gotten tough these days, especially for small-business owners. So in the wake of the aftermath I decided it’s time for someone to discuss money saving tips for small business owners. After all…containing your healthcare plan costs, might help ease some of the economic pressures bearing down on your business.
First off health insurance can be emotional; this is especially true in a small business setting. After all, we’re talking about your health and, in some cases, maybe even your life. If done right, you achieve the results necessary to not only attract and retain your employees, but also keep your group health insurance plan in place. Oh, and maintain your profitability as well! You can’t forget about that.
These three simple tips might help you offer great health care benefits at an affordable price:
Healthcare Savings Tip No.1 - Utilize Smaller Networks
An insurer's preferred provider network is a list of doctors, hospitals and other healthcare providers who have contracted with the insurer to provide care at discounted rates and handle paperwork with the health insurance company.
Most health insurance companies have both large and small provider networks. The healthcare providers in the smaller networks provide healthcare for deeper discounts than the larger networks. When you opt for the smaller networks, the insurance company passes along those savings to you through reduced insurance premiums.
Savings to the employer for offering the smaller network range from seven to 20 percent depending on the insurance carrier and the nature of the network offered. Keep in mind that your employees might find that the network doesn’t include some of their providers. However, if it comes down to using another provider versus not having health insurance, employees usually accept the smaller network. A smaller network still has out-of-network coverage available to the insured, though it might include a higher deductible, greater coinsurance exposure and, potentially, reasonable and customary claim cutbacks.
Healthcare Savings Tip No.2 - Offer HMOs
Health Maintenance Organizations remain valid and worth any employer's consideration even if some of the luster has worn off over the years. HMO plans continue to have the best price point for small business insurance coverage, so it's a great way to save on your healthcare costs.With an HMO, your employees get medical attention principally from the hospitals, doctors and other providers with which the HMO has a contract. Each employee works with a primary care physician who helps address their medical issues.
While it's a great way to save on your health insurance costs, many employees view HMOs negatively. For years, HMOs have had a reputation for denying medical treatment that would be granted in other coverage types or even offering below-average care. However, don’t be swayed by just talk -- look into any HMO you’re interested in.
Most HMOs offer excellent medical care, but even still every HMO is different. Do your due diligence on HMOs before making a final decision. It’s also good for you, as an employer, to pay for as much of the HMO premium as you can afford. If your employee wants the more traditional plan, then they should be required to pay the difference. This helps further cut company expenses.
Healthcare Savings Tip No.3 - Offer Health Savings Account (HSA) Plans with High Deductibles
You might save the most on small business health care insurance by using HSAs, which must be coupled with a high-deductible insurance health plan (HDHP). HSAs let your employees purchase routine health care services directly by using spending accounts. For example, a routine trip to the doctor's office would be paid for out of an employee's HSA. Non-routine expenses, such as a major health crisis, are covered by traditional insurance after employees meet a deductible.
An HSA savings account is established for each employee through a trustee or custodian. The employer contribution to an HSA account is non-refundable. After making it, you cannot recover it. When employees move to another company, they take their HSA accounts with them. There are no limits to accumulated HSA funds, which are tax exempt and can be invested.Compared to other types of insurance premiums, your savings with an HDHP for family coverage can average $1,400 per employee per year.
Although your employees may initially be skeptical of an HDHP, after a full explanation they’ll generally understand the advantages an HSA account combined with an HDHP. It’s truly win-win for both employers and employees. It’s good healthcare coverage at an affordable price.
The Bottom Line on Health Insurance
Small business health insurance costs might be skyrocketing out of control, but you can still lower other costs and offer employees excellent insurance coverage. You just need to be smart about it and keep both your employees’ well-being and your company’s bottom line in focus.
When defining your plans, you should know there’s help available to discuss all your options. If you have a local insurance broker you trust, they’ll almost certainly help you out as well.
I’ve outlined only a few tips out on how to save on health insurance, but there’s many, many more. If you have any others you'd like to share or have questions about ways to save money on small business health insurance, please call 801-372-2647, or email me at: bret@UtahInsuranceSolutions.com. You can also visit my website: http://www.UtahInsuranceSolutions.com
by Bret Harding
Times have gotten tough these days, especially for small-business owners. So in the wake of the aftermath I decided it’s time for someone to discuss money saving tips for small business owners. After all…containing your healthcare plan costs, might help ease some of the economic pressures bearing down on your business.
First off health insurance can be emotional; this is especially true in a small business setting. After all, we’re talking about your health and, in some cases, maybe even your life. If done right, you achieve the results necessary to not only attract and retain your employees, but also keep your group health insurance plan in place. Oh, and maintain your profitability as well! You can’t forget about that.
These three simple tips might help you offer great health care benefits at an affordable price:
Healthcare Savings Tip No.1 - Utilize Smaller Networks
An insurer's preferred provider network is a list of doctors, hospitals and other healthcare providers who have contracted with the insurer to provide care at discounted rates and handle paperwork with the health insurance company.
Most health insurance companies have both large and small provider networks. The healthcare providers in the smaller networks provide healthcare for deeper discounts than the larger networks. When you opt for the smaller networks, the insurance company passes along those savings to you through reduced insurance premiums.
Savings to the employer for offering the smaller network range from seven to 20 percent depending on the insurance carrier and the nature of the network offered. Keep in mind that your employees might find that the network doesn’t include some of their providers. However, if it comes down to using another provider versus not having health insurance, employees usually accept the smaller network. A smaller network still has out-of-network coverage available to the insured, though it might include a higher deductible, greater coinsurance exposure and, potentially, reasonable and customary claim cutbacks.
Healthcare Savings Tip No.2 - Offer HMOs
Health Maintenance Organizations remain valid and worth any employer's consideration even if some of the luster has worn off over the years. HMO plans continue to have the best price point for small business insurance coverage, so it's a great way to save on your healthcare costs.With an HMO, your employees get medical attention principally from the hospitals, doctors and other providers with which the HMO has a contract. Each employee works with a primary care physician who helps address their medical issues.
While it's a great way to save on your health insurance costs, many employees view HMOs negatively. For years, HMOs have had a reputation for denying medical treatment that would be granted in other coverage types or even offering below-average care. However, don’t be swayed by just talk -- look into any HMO you’re interested in.
Most HMOs offer excellent medical care, but even still every HMO is different. Do your due diligence on HMOs before making a final decision. It’s also good for you, as an employer, to pay for as much of the HMO premium as you can afford. If your employee wants the more traditional plan, then they should be required to pay the difference. This helps further cut company expenses.
Healthcare Savings Tip No.3 - Offer Health Savings Account (HSA) Plans with High Deductibles
You might save the most on small business health care insurance by using HSAs, which must be coupled with a high-deductible insurance health plan (HDHP). HSAs let your employees purchase routine health care services directly by using spending accounts. For example, a routine trip to the doctor's office would be paid for out of an employee's HSA. Non-routine expenses, such as a major health crisis, are covered by traditional insurance after employees meet a deductible.
An HSA savings account is established for each employee through a trustee or custodian. The employer contribution to an HSA account is non-refundable. After making it, you cannot recover it. When employees move to another company, they take their HSA accounts with them. There are no limits to accumulated HSA funds, which are tax exempt and can be invested.Compared to other types of insurance premiums, your savings with an HDHP for family coverage can average $1,400 per employee per year.
Although your employees may initially be skeptical of an HDHP, after a full explanation they’ll generally understand the advantages an HSA account combined with an HDHP. It’s truly win-win for both employers and employees. It’s good healthcare coverage at an affordable price.
The Bottom Line on Health Insurance
Small business health insurance costs might be skyrocketing out of control, but you can still lower other costs and offer employees excellent insurance coverage. You just need to be smart about it and keep both your employees’ well-being and your company’s bottom line in focus.
When defining your plans, you should know there’s help available to discuss all your options. If you have a local insurance broker you trust, they’ll almost certainly help you out as well.
I’ve outlined only a few tips out on how to save on health insurance, but there’s many, many more. If you have any others you'd like to share or have questions about ways to save money on small business health insurance, please call 801-372-2647, or email me at: bret@UtahInsuranceSolutions.com. You can also visit my website: http://www.UtahInsuranceSolutions.com
Friday, January 30, 2009
Utah Insurance Solutions
Utah’s insurance guru specializes in implementing cost effective health, life, disability, and supplemental insurance programs for businesses and individuals. Finally an insurance solution exists to help you find the best coverage, at the most affordable price! Please visit:
www.UtahIndividualHealthInsurance.com
www.UtahHealthInsuranceCompany.com
www.UtahInsuranceSolutions.com
www.VoluntaryInsurancePlans.com
www.UtahEmployeeBenefits.com
www.UtahSmallBusinessInsurance.com
www.UtahMedicalInsuranceQuote.com
www.UtahSmallGroupInsurance.com
www.UtahLifeInsuranceGuru.com
www.UtahLongTermCareGuru.com
www.UtahIndividualHealthInsurance.com
www.UtahHealthInsuranceCompany.com
www.UtahInsuranceSolutions.com
www.VoluntaryInsurancePlans.com
www.UtahEmployeeBenefits.com
www.UtahSmallBusinessInsurance.com
www.UtahMedicalInsuranceQuote.com
www.UtahSmallGroupInsurance.com
www.UtahLifeInsuranceGuru.com
www.UtahLongTermCareGuru.com
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