Level-funded benefits are the missing piece of the puzzle your customers have been looking for. With level-funding, they’ll enjoy decreased benefits costs, just as though they were running a large corporation. By offering them level-funded, their small business can finally grow and financially succeed. Here’s how it works:
Level-Funded is Not Just for Large Corporations
Typically, small business owners think their companies are too small for level-funded health benefits. However, ERISA makes it possible for small businesses to have access to the same coverages and cost-saving benefits that large corporations and Fortune 500 companies already take advantage of, making it an easy decision for your customers.
How Eligible Claims are Covered
Level-funded health benefits plans allow your clients the ability to pre-fund their claims fund. Rather than paying claims as they come in – and not ever knowing what to expect from month to month – they will already have funds set aside to take care of eligible claims.
And when a covered claim is more than what they have in their claims fund, the Excess Stop Loss policy offered through Nationwide® will take over. Not to mention, the stop loss policy you can offer your customers comes with a lower deductible as well.
Claims Fund Rollover = More Savings
When your clients have money remaining in their claims fund at the end of their policy period, level-funded benefits plans allow them the option of rolling over those dollars into the following term. Rolling over drives their plan costs down, puts more back into their pocket, and gives you a better rate of renewal as their agent.
Level-Funded Benefits Save Your Clients Now and Down the Road
You can sell level-funded health benefits as a smart way to budget for small businesses because your customers will pay a set amount each month, and they’ll know what that amount is going to be the moment they sign up.
While level-funded benefits already save them from the beginning due to the fact that plan rating is based solely on them and their employees – not nationwide averages – there’s even more savings to be had down the road, and more opportunity to retain your customer base.
By advising your clients how they can take advantage of the rollover options for money leftover in their claims fund at the end of their policy term, you can help their company steadily reduce the cost of benefits in the future.
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