What should and shouldn’t be insured?

As a business owner, you’ve probably been confronted with premium increases for your group benefits. We know it can come as quite a shock when your rates jump after a year.

Insurance companies have you insuring every aspect of your group benefits plan, but that’s just not right.

Insurance can be a useful tool when providing benefits, but do businesses really need to insure their employees' health and dental expenses?

What Insurance is designed for

Insurance is designed to cover extraordinary high-cost events that hopefully never happen.

The kind of events that are sudden, unforeseen, and unexpected, with outcomes that are usually catastrophic and expensive.

Some examples of where insurance makes sense are for things like:

1. An unexpected death.
2. A serious illness or injury.
3. Hospital trips while travelling.

If any of these things happens, we think you'll agree that most would want the added comfort of having insurance in place.

Should Health and Dental be insured?

But what about regular everyday expenses? You know, the routine stuff that your employees need, like:

1. Regular dental checkups
2. Massages
3. Eyeglasses
4. Routine prescription drugs

Are these extraordinarily high-cost events sudden, unforeseen, and unexpected?

Absolutely not!

These things come up all the time and they're not high-cost events compared to those other examples.

They are the exact opposite of the type of expenses that should be insured. They are what we call, transactional benefits.

The health and dental part of a benefits plan is typically the highest cost of the plan. It's the most used part of a benefits plan, and do you know what else?

Insured health and dental are what drive up your renewal costs. Insurance companies use the premiums from each group to recoup their costs for paying health and dental claims. That means that as your team makes health and dental claims, the insurance company will raise your premiums. It’s a sure bet that if your health and dental benefits are insured, they will be causing a significant premium increase each renewal.

Here's where we can help

We'll provide you insurance where it's needed and set up a better plan for all your health and dental needs. A blended benefits plan can deliver all the benefits you could want in the most efficient way possible while keeping you in control of the costs.

Get in touch with us today and we’ll show you what a real group benefits plan can do for you.

Get The Beginner's Guide to Blended Benefits