Pooled Plans, Traditional Insurance, and Pay as you Go
Did you know, you have choice as to how you pay for your benefit plan?
The vast majority of benefit plans are set up on a traditional model, and that works well for many. Well educated advisors know there are other options. All options have pros and cons.
Traditional Plans charge a premium based on a rate they propose at the beginning of each year
- On renewal, the insurer proposes new rates, usually based on your use plus predetermined factors.
- These plans have the highest fee structures.
Pooled Plans are a great solution for many businesses who cannot handle large price swings. These plans mostly move with cost of living. Annual price changes are very predictable.
Our preferred Pooled Plan (The CFIB Primasure Program) had an average increase of 2.9% in 2021.
This is the lowest increase of any comprehensive plan we monitor.
Pay As You Go plans come in a few different forms.
You pay for your claims plus administration costs. These plans suit companies who can handle a variable monthly bill. When you go to a pay as you go plan, you always save money over time.
The average annual increase that we have seen since 2002 is 4.6%.
There are many factors to determine what option is best for you. When we meet, part of our automatic process, along with designing your benefit plan, is to determine what payment type will be your long-term best value. We also have clients who combine Pay As You Go with Traditional options combined into one plan.