The Blue Cross SME Plan An alternative solution to traditional group benefits

Accelerating your commissions with the Blue Cross SME Plan An alternative to traditional group benefits

Agenda 1.Challenges 2.Opportunities 3.Productivity Multiplier! 4.SMEs Plan introduction 5.Ticket to success = SME Bootcamp

Challenges  Keeping a steady flow of qualified prospects coming into your pipeline  Increasing your success rate when prospecting  Generating ongoing revenue  Generating recurring revenue Challenges

Keeping a steady flow of qualified prospects coming into your pipeline  How much time and effort do you spend to get 10 new qualified leads/prospects a month?  What are you doing to achieve that?  Are you prospecting, networking, spending marketing dollars, getting referrals…? Challenges

Generating Ongoing Revenue How much time does it take to earn $5,000 in first year commission in one sale? 10 qualified leads = 2 appointments 2 appointments = 1 sale Opportunity

Generating Recurring Revenue How do you get paid without making a new sale? RENEWALS Opportunity

The Accelerator SME Business from our top producers  Average policies per sale10  Average premium per sale$20,000  Average SME commission$5,000 FYC $1,400 Renewal This is what we refer to as a Productivity Multiplier! Opportunity

SME Revenue Opportunity Opportunity

Success Factors Opportunity Niche  Provide products and services to a group that advisors and insurers have overlooked Network  With whom do you have an affinity? Branding Yourself  Being known in certain industries i.e. food processing, manufacturing, retail, medical, dental, etc. Unique product offerings  Providing flexibility for both the owner and employees

Success Factors Opportunity  99% of Ontario’s businesses are made up of small and medium size enterprises  50% of Ontario’s jobs are with small and medium size enterprises  Average income of a fulltime SME employee in Ontario is $52,000 Source: Statistics Canada

Ontario SME Businesses Opportunity Source: Statistics Canada EMPLOYEESBUSINESSES 5-960, , , ,167

Opportunity Summary Opportunity Source: Statistics Canada Challenge #1 Keeping a steady flow of qualified prospects coming into your pipeline Opportunity #1 SMEs with no group plan are all looking for cost effective solutions to:  Attract talent  Keep good employees  Keep employee motivated

Opportunity Summary Opportunity Source: Statistics Canada Challenge #2 Generating ongoing revenue Opportunity #2  Employee turnover creates opportunity  Growing SMEs will contact you every time they hire a new employee

Opportunity Summary Opportunity Source: Statistics Canada Challenge #3 Generating recurring revenue Opportunity #3  You get higher renewals than traditional group insurance  Plus, a persistency bonus

SME Plan An alternative to traditional group benefits

Target Customers  Ideal for small businesses of 5 lives plus Product

Eligibility  Must have OHIP coverage  Not hospitalized or disabled when the contracts comes into effect  Must be able to meet all requirements of the SME declaration Product

Highlights  Combines all of the strengths of a small group plan with all of the strengths of an individual plan  Flexibility  Portability  Stability  Usability Product

Features  Excellent selection of benefits with NO medical underwriting up to specified limits  Ability for each employee to purchase additional amounts by completing a health statement (underwriting will apply)  Can add Express Plan benefits to enhance coverage Product

Reduced Medical Underwriting 85% participation required Product

Benefit Highlights Disability  Excellent and well priced ROP benefit  Regular occupation to age 65 (optional)  Non-cancellable  Portable Life T-65  Can be converted anytime prior to age 65 to a T100 with no medical evidence (up to $200,000) Product

Benefit Highlights Drug Benefit  Choice of $1,500/person/year or $10,000/person/year (with 2 additional health questions) Extended Health  Choice of Regular or Enhanced benefits Dental  No waiting period  Root canals eligible immediately  1 st year is pro-rated YearAmountCoinsurance Year 1$75070% Year 2$1,00075% Year 3$1,25080% Product

Case Study #1 Case Study Family business (5 lives)  Father, mother, two sons and a cousin  100% family content Problem: Unable to find traditional group coverage due to family content restrictions. Solution: Purchase a Blue Vision SMEs Plan where each person selects different benefits that suit their needs.

Case Study #2 Corporate Head Office (60 lives) Problem: Owner wanted comprehensive coverage for the administration staff, but only wanted to offer minimal benefits to the other employees. Solution: Owner purchased comprehensive coverage for the administration staff and paid $10 per month of benefits for each of his other employees. This also allowed the other employees to have access to preferred medical underwriting for other benefits which they were able to pay for on their own. Case Study

Case Study #3 New Machine Shop Problem: Need to insure 6 lives and had a budget of only $250 per month. Solution for only $39 per employee per month: BENEFITAMOUNT DI due to Accident$1,000 per month Term Life 65$25,000 AD & Loss of Use$25,000 Accidental Fracture$5,000 Extended Health and Hospital Due to Accident Case Study

Manufacturing Company Problem: Only 9 of 17 employees wanted DI benefits Solution:  9 employees purchased $1,500 per month of DI due to Accident and Illness with a 30 day waiting period up to age 65  8 employees purchased $500 per month of DI due to Accident and Illness with a 120 day waiting period and a 2 year benefit so that the group could qualify for an SME Plan. Case Study #4 Case Study

Medical Clinic Problem: 5 life group. Only 4 employees needed benefits as the fifth had spousal benefits elsewhere. Group did not initially meet the minimum participation requirements of 85%. Solution:  Fifth employee purchased $10 of Express Plan benefits in order to meet the participation requirements. Case Study #5 Case Study

Retail Shop Problem: All 5 employees applied for the SME Plan and 2 employees were uninsurable. Solution:  SME was issued on the remaining 3 lives. Case Study #6 Case Study

Marketing Company Problem: Group of 12 where 2 employees have existing individual coverage with Blue Cross. Solution:  Blue Cross issued the SME and included the 2 members with the individual benefits as part of the SME participation.  The group now qualifies for higher benefits 11+ lives Case Study #7 Case Study

Office Problem: Group has $3,000 per month of LTD coverage (5 year regular occupation) with another group plan. Solution:  Blue Cross issued an SME and grandfathered $3,000 per month of DI (regular occupation to age 65) with ROP. Case Study #8 Case Study

Summary

Assistance Program

How to successfully sell an SME SME Boot Camp  Step 1 Attend Blue Cross SME Boot Camp  Step 2 Look for SME prospects who…  Need to attract talent  Need to retain good employees  Have no group insurance or are not pleased with current insurer  Want to differentiate themselves from their competitors  Are growing  Step 3 Get trained and coached by your Blue Cross Sales Representative  Step 4 Sign up TODAY