Posted by John M. (64.216.32.134) on November 25, 2002 at 19:20:45:
Looks like the other discussion about AFLAC is getting pretty heated. I am an associate with AFLAC in Lubbock TX.
I would like to address the questions posted by Agent. I'm not looking to argue, I just want to give some factual information. It sounds like Agent has sincerely expressed an interest in obtaining information and has legitimate questions & concerns.
Depending on what state you are in, insurance laws are going to be different. Along with that, insurance policies, health and supplemental, coverage is going to be different. So, what I am writing is true in Texas. Please do not take these as being accurate for all 50 states.
1) why was the policy sold to a company in the first place if the employees did not have REAL health insurance? AFLAC is offered to all companies regardless if they have group health insurance. Most companies are evaluating whether or not they can afford to offer health insurance any longer. By law, companies offering group health insurance have to pay a percentage of the insurance premium. Which increased in 2002 by an average of 15% throughout the US. Texas was hit with a 25% increase. So you can appreciate the burden on the employer. Supplemental Insurance is a generic term. Supplemental Insurance can stand alone.
2) Did the agent mention to the company that maybe they should look at REAL group health insurance first?When I go to speak with an employer, I do an overall evaluation of their current benefits. I can tell you from experience, most of the employers I speak with "had" group health insurance at one time and it became too expensive for both employee and employer. Most of the big companies, companies with 50 or more employees, have health insurance, but with a high deductible. However, 80% of companies in the US have 10 or fewer employees. Small companies are usually out of luck. Also, with group health insurance, the company must have a certain percentage of employees participate to either (1) Get the coverage at the price that was negotiated, or (2) not get coverage at all. And they must maintain a certain percentage participation to keep the group health. AFLAC only requires 3 people to enroll to get payroll rates. To participate on a USC sec 125 plan, AFLAC only requires 5 employees. The company does not have to maintain these employees. If the company laid off all but one employee, they would still be eligible for the group rate once the group was established. We certainly would like for every employer to offer health insurance, but it sometime is just not optional.
3) What if the illness wasn't covered under AFLACs limitations and exclusions?
You are referring to a specific policy. The "Specified Health Event" is also known as a "Personal Recovery Plus" plan. It covers major events like heart attack, stoke, comas, etc... However, AFLAC offers,
Accident and Disability
Long Term Care
Cancer Plan
Life Insurance (AKA Life Assurance)
Dental (This is standard dental insurance)
Personal Sickness Indemnity (Physician Visits, Hospitalization, Major Diagnostic Exams, Surgical
Short Term Disability
Hospital Confinement Indemnity
Specified Health Event (AKA Personal Recovery Plus)
Hospital Intensive Care
You are correct, each policy is individually underwritten. And all underwriting questions are generally asked at the time of application. Our plans are guaranteed renewable, so future accidents and illnesses do not effect the persons ability to keep the policy and reap the benefits of the policy. Limitations and exclusions are detailed in the policy and are not in fine print. We do not have anything to hide.
4) while you are saying this policy was sold to the company as primary coverage?
AFLAC is not meant to be "primary coverage". However, it sometimes is the only coverage someone can afford. And it is better to have something than nothing at all. AFLAC associates are not soliciting Group Health Insurance. We will usually refer the company to someone who does if they are looking for group health.
5) Wouldn't that make this an inferior, inadequite health policy if the health provider gets the beneft anyway?
The hospital can ask for assignment, however, the patient must authorize AFLAC to send payment to someone other than themselves. So, the hospital cannot collect unless the patient wants them to.
6) What does AFLAC pay out in a lifetime? It depends on each individual policy. Some do not have a lifetime maximum. Again, you would have to check state by state.
7) But how many employers would offer AFLAC in addition to real group health insurance? I think it would be a tough sale, for more paperwork, and the employer gains nothing.
Currently, AFLAC is offered in approx. 230,000 US employers. Many of the nations largest corporations offer AFLAC to their employees. I decided to address your comment, "I think it would be a tough sale for more paperwork, and the employer gains nothing." Actually, AFLAC can be billed electronically eliminating much of the paperwork, and the employer has much to gain. If AFLAC is offer to an employee on a pre-tax basis (Cafeteria Plan), the company saves, at a minimum of 7.65% FICA on payroll taxes. To some companies, this amounts to millions of dollars per year in payroll tax savings effectively increasing their bottom line profit. That is a BIG BENEFIT...
My comments are in no way shape or form a solicitation of insurance to anyone. I am licensed to sell insurance in Texas only. If you have any questions about insurance in Texas, please feel free to contact me via email. If you would like a consultation over the phone, I will be happy to call you, or be called, if you will email me first please.
John Marshall email
Follow Ups:
Post a Followup
|
