Looking for a way to exit the business? Find out what a fair payout is and how to transfer your clients to the right health insurance professional who will advocate for clients as you have for years.
BY PHIL CALHOUN
Health insurance professionals have worked for many years supporting their clients with access to affordable medical plans and advocated for clients to deal with the problems that occur when they use their benefits. As a client advocate, health benefits professionals work through the failures carriers and/or providers of medical care create. These failures can lead to denials for medical care, blocked referrals for tests and treatments, or incorrect billing. These service issues are becoming almost full-time work.
The responsibilities a group benefit broker must tackle are complicated with the many changes in benefits technology, competition from professional employer organizations (PEOs) and payroll companies, and the numerous compliance issues now required of employers.
Given all of this, some brokers look for a way to manage their book of business or even find a best practice to exit the business. The two main issues in this case study are finding out what a fair payout is and how to transfer clients to the right health insurance professional who will advocate for their clients as they have for years.
Alan’s exit planning case
Alan is an example of a group health insurance professional who at age 72 is hoping to enjoy more years of income from his book of business but is looking to plan for his exit. The past five years, he has spent less time on growing his book and more time servicing his clients. He is concerned about the recent trend as he has lost clients to larger benefit agencies and PEOs offering HR and workers compensation insurance. His other concern is — should something happen to him —his wife would not get the benefit of his years of work.
Alan’s task is to find a way to protect his commissions. Alan soon finds the work to protect his commissions in all life events is not easy. Alan tries to connect with local professional associations, carrier reps and colleagues to see if anyone knows about experienced agencies in this type of planning. He also looks for a younger broker who could be a fit, because none of his family want to join the business.
Case study: Alan
Brokers in the position Alan is in often find ways to sell their group benefits business. But for Alan to stay active, he really needs a way to protect his commissions and not sell until he is ready.
Commission Solutions consults with Alan as group health benefits professional on his commission protection options.
A best practice is a commission protection agreement. All agreements must include a buyout to cover the active broker’s voluntary retirement or eventual death.
If you are looking for assistance with planning for commission protection while you stay active, or want to work on a plan to sell and exit your business in the next three years, you can contact Commission Solutions at 714-664-0311 for a 15 minute free consultation call.
All agreements must include a buyout to cover the active broker’s voluntary retirement or eventual death.
PHIL CALHOUN consults with health insurance professionals on commission protection and exit planning. He is the co-owner of Integrity Advisors and publisher of Cal Broker Magazine. Calhoun is driven to help active health insurance professionals access the resources needed to be an advocate for their clients.
To learn more, go to www.commission.solutions or call 714-664-0311