The recent introduction of two term life policies (20-Year Renewal Term to Age 70 and Term Life to 100) and the specified benefit health policies (Cash Cancer, Cancer Expense, Critical Illness and Accident Compensation) is a big boost for UAatWork. Being able to combine these life and supplemental health policies on one application simplifies the sales process even further. Why is this new term life offering so important? For many individuals, the only life insurance they have is through an employer; in fact, many employees expect it! Generally, it’s a small amount of coverage and only effective during the individual’s employment. Our policies offer up to $100,000 in coverage, are portable, provide family coverage, are guaranteed as long as premiums are paid on time, and offer additional benefits and riders. They’re great for Agents too because of the seventy-five percent first-year commission rate.

According to the U.S. Census Bureau, there are approximately 45 million uninsured people in the United States. Limited benefit policies such as FLEXGUARD for UAatWork can play an important role in solving the dilemma of the uninsured. It is not a substitute for comprehensive coverage and was not designed to be, but it can provide low and moderate income individuals and families with a means to handle basic medical needs. Even in times of real medical crisis, our policies can provide a buffer against overwhelming hospital or physician charges. And, without a doubt, a limited benefit plan is the only alternative for many individuals and families. Not surprisingly, this interest in limited benefit plans goes beyond small companies. Many major corporations such as ExxonMobil, Home Depot, Jack In The Box, IBM and Sears are now offering limited benefit health plans as well.

But what makes these products even more valuable to both the individual and the employer, is the Section 125 we offer along with them. Why is Section 125 getting so much press these days? After all, it was created by the Revenue Act of 1978. Employers and employees have been utilizing Section 125 features for many years to pay pre-tax for the employee portion of employer-sponsored benefits, for flexible spending accounts, for qualified out-of-pocket medical expenses, and dependent daycare. But, with the recent upsurge in worksite marketing across the country, the value of Section 125 has dramatically increased in the voluntary benefits arena.

Why offer Section 125? Because everyone wins! The employer pays less in payroll taxes. The individual employee has less taxable income. Section 125 helps create increased persistency for United American, which means long-term renewals. Because individuals pay lower premiums for worksite coverage and commit to the Section 125 plan for an entire year, they have added incentive to pay premiums and maintain their coverage. Consequently, retention and persistency skyrocket! Does worksite pay? Absolutely! Ask John Hamilton, Don Gibbs, Andy Laudenslager, Randy Byrd, Alan Spafford, Jack Curtis, Lance Taylor and Michael Kiser. In the last 15 weeks, their eight Branches have generated 68 percent of their entire year’s worksite production. Why in the 3rd quarter? Could the reason be FLEXguard? And vision?

John Hamilton, 61 Branch Manager, agrees. “I believe that worksite and particularly Section 125 will be THE determining factor for 2006 and for the next several years in the Branch Office Division. Those who ‘get it’ and get on board with it will see incomes in their offices that other offices will only be able to dream about.”