Group insurance: Association Versus Broker Sold Plans

 If you’re a member of a professional association, chances are you’ve been approached about group health and dental coverage. This coverage can be a good deal for some businesses, but it comes with limitations:

1. Since most plans are sold directly through the association, there is no personal contact. Any service-related issues are dealt with through a call centre. On the other hand, broker-sold plans allow for a more personal response to service-related issues.

2. Association-sold plans usually come with preselected benefit options, but broker-sold plans can be customized to the specific benefit needs of your business.

3. Broker-based plans can come with an initial rate guarantee of up to 16 months, but most association plans have a maximum rate guarantee of 12 months.

4. Association group plans do not allow for negotiation, but broker-based plans can allow the broker to negotiate your premium on your behalf.

5. Association plans require the business owner or professional to be a member for their company to qualify for a group plan, but a broker-based plan does not require any type of membership. In addition, such membership fees can range from free to a $1,000 or more a year.

If you have any questions about further differences between association-based and broker-based group insurance plans, please do not hesitate to contact us at 1-866-899-4849 or visit our Group Insurance Quote Page.

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  • T Drist
    August 30, 2013 at 6:52 am

    Can you quote me me on a group insurance plan for me and my wife. She is diabertic

    • LSM Insurance
      August 30, 2013 at 8:14 am

      Thanks for the note. The premiums will depend on the type of benefits you are after. We will send you a separate email now.

  • Ted R
    June 6, 2013 at 7:58 am

    I’m a 52 Engineer looking for Term Life Coverage. My current plan just renewed at a lot higher rate. How long a term can I get.

    • LSM Insurance
      June 6, 2013 at 9:22 am

      Hi Ted, You could qualify for a Term 100 level rates to age 100 or a Term 30 – level rates for 30 years.