7 Questions to Ask when Choosing a New Benefits Advisor

Posted by Douglas Hynek on August 21st, 2015

Benefits AdvisorWhether you are looking for a new benefits advisor because you’re not happy with your current group insurance plan or because of necessity, knowing how to choose a new advisor is valuable. Asking the right questions of a potential group benefits advisor can save you money, ensure you get adequate coverage and the service you deserve, and ultimately help you attract and retain top talent.

ADP Leaves Group Insurance Market

Knowing which questions to ask is particularly important right now for former clients of ADP Canada.

ADP recently announced their intention to leave the group insurance market. Their clients must migrate to a new group benefits broker by the end of August.

In light of this, let’s discuss how ADP clients, or any business owner, should go about choosing a benefits advisor:

Tips for Choosing Your Next Group Insurance Consultant

An article on Benefits Canada does an excellent job of outlining how to find the right benefits advisor for your business.

Here are some key questions to ask a potential group insurance broker:

  1. Are you offering more than just a low price? As the article says, “Optimizing plan design and working with carriers that adjudicate to the letter of the plan design will do more to offer plan savings and will trump the lowest price. These considerations are also more tangible—as opposed to low rates that simply buy business today with nasty surprises to come at renewal time next year.”
  2. What happens at renewal? As mentioned above, sometimes the plan with the lowest initial price will be subject to high premium increases at renewal. Make sure the advisor does a good job of explaining what happens at renewal, so you are able to fully understand and make an informed decision.
  3. Does this plan fit my needs and goals? Discuss your needs and goals with the advisor. You should feel comfortable; you should feel like your needs and goals are being taken into full consideration in the design of your plan.
  4. Is this benefits plan sustainable? Building a sustainable benefits plan is one of your top priorities.
  5. What is your professional experience in providing benefits solutions? Determine the credibility of the broker by asking about their experience and knowledge.
  6. Can I change any plan design elements, such as mandatory generic drug plans? What do these changes accomplish and do they offer any plan savings?
  7. What will the effects of this plan be on plan members in terms of out of pocket expenses?

Click here to read the full article, “Trust and transparency when choosing a consultant”.

Trust and transparency are crucial when selecting a group insurance advisor. These questions should help you establish confidence and determine which advisors are being straightforward with you.

>> HFG is happy to sit down with you and discuss your group insurance needs, goals, and budget. We will provide you with a detailed analysis of which benefits plans best suit your needs. Get in touch with an HFG advisor today to get started!

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About Douglas Hynek

Douglas Hynek, Principal Advisor at HFG, has over 10 years of experience in group and individual insurance design. He specializes in crafting and managing employee benefit and retirement strategies for small to mid-sized businesses, as well as financial and insurance planning for business owners and executives.

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