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The World’s #1 Provider of Voluntary Benefits

Health InsuranceHealth Insurance• On average, what does it cost per year per employee?• What percentage of your employees’ Health Insurance

premiums do you pay?• Why do you pay for this benefit?

Why Do Businesses Spend So Much On Health Why Do Businesses Spend So Much On Health Insurance?Insurance?

Most employers say it’s because they want to attract and retain quality employees.

“From an employer perspective, well-designed employee benefits are a central strategy in attracting and retaining employees.” -Employee Benefit Research Institute

What do you pay to improve retention?What do you pay to improve retention?• Health Insurance » $5000/employee/yr• Vacation Time » $4800/employee/yr• Miscellaneous » $8400+/employee/yr

• 401K Contributions• Various reward programs• Extensive training sessions• Bonuses• Break room facilities

Employee Benefit Employer CostMedical Insurance $5,000

Paid Leave $4,800Retirement $2,500

Legally Required(Unemployment, Workers Comp, Medicare, Matching FICA) $5,900

Benefit Costs for an Employee with a $50,000 Salary:

What is Your Cost of Turnover?What is Your Cost of Turnover?

• What is your cost when an employee quits? To replace them, you need to…• Locate your new hire• Interview• Train

• Other costs may include…• Lost productivity• Administrative hassles (paperwork, payroll changes,

etc.)

On average, replacing an employee costs 25% of the value of their total compensation package. -The Saratoga Institute

The Big Question…The Big Question…

Given the explosion in Health Insurance cost

AND

The fact that Health Insurance is now a commodity…

Is there any way for you to add valuable benefits for your employees without spending any additional money?

AFLACAFLAC

• We allow you to…• Add additional benefits for your employees

without spending any money• Strengthen retention with your current

employees • Add a great tool to attract new people with• Reduce your payroll taxes• Improve profitability

Perception = RealityPerception = Reality

Although not employer funded, AFLAC’s Employee Funded Voluntary Benefits will have a greater impact on retention than many of the benefits you currently pay for!

82% of employees whose companies offer voluntary benefits are content with their packages. That satisfaction declined by 30% for

those companies that fail to offer such benefits.

-WellPoint Inc.

Perception = Reality (Cont.)Perception = Reality (Cont.)

Which employees perceive they have richer benefits?

Company A spends $5,000/ee/yr on health ins. Other benefits = little or nothing

Company B spends $5,000/ee/yr on health ins. Other benefits = AFLAC’s employee funded short-term disability, family

disability, dental, maternity, catastrophic insurance, and life insurance

Why be perceived as Company A when you can be perceived as Company B for free AND you get a tax break!

Grateful EmployeesGrateful Employees

When is the last time an employee thanked you for their benefit options?

“My benefit package is the best way to gauge how much my employer cares about me, and values the work that I do here.”

-More Tips to Reduce Employee Turnover

It’s a Win-Win Situation!It’s a Win-Win Situation!

• Employees love AFLAC for the additional benefits they obtain

• Employers love AFLAC for the employee gratitude, increased retention, tax savings and zero cost

AFLAC’s ProductsAFLAC’s Products

• Short-term disability

• Family disability• Maternity• Dental• Life• Catastrophic

coverage

Harvard StudyHarvard Study

• 80% of the people filing for Medical Bankruptcy in 2007 had health insurance, but it was not enough to protect them financially.

• We protect your most important asset, your income. Aflac pays cash directly to you to help replace lost wages and to cover out of pocket medical expenses.

Of the 850,000 bankruptcies filed in the US in 2007,

62.1% were attributed to health problems.

The odds that a bankruptcy had a medical

cause was almost 3x higher in 2007 than in

2001.

Short Term Disability

• Helps offset the loss of pay resulting from pregnancy, sickness, or off-the-job injury through monthly benefits

• Consider the Facts:• An average of 2,990 disabling injuries occur every hour

during the year.• In the United States, more than two thirds of the

disabling injuries suffered by workers in 2008 occurred off the job.

• Consider the Possibilities:• If a disability temporarily keeps you from earning your

full income, how will you pay your bills during your recovery?

Everyone Needs Family Disability!

• Major Medical Insurance

• Employee Coverage: Employer pays 100%• Family Coverage: Employee pays 100% through Section 125

• Disability Insurance

• Employee Coverage: Employer pays 100%• Family Coverage: Not available?

Sample Situation:47 Year old individual with a wife and two kids. Middle class: two cars and a 30

year mortgage.

Benefits

Retirement 401K

Dies Term Life Policy

?????

Why is Catastrophic Coverage Needed?

Medical Emergency

Sample Situation:47 Year old individual with a wife and two kids. Middle class: two cars and a 30

year mortgage.

Benefits

Retirement 401K

Dies Term Life Policy

Medical Emergency ?????

Why is Catastrophic Coverage Needed?

Dental Coverage

• Stand alone coverage or supplemental

• Freedom of choice• Benefits paid regardless of any

other insurance• No deductible

Approximately 62 percent of employees view dental coverage as an essential company benefit.

Approximately 62% of employees view dental coverage as an

essential part of their benefit package. -National Association of Dental Plans

Dental is the third

most demanded benefit

after major medical

and retirement benefits.

-LIMRA

Life Insurance

The commitment you make to your family is the most important commitment you will make in your lifetime. So what happens if you’re not there to fulfill it? Nothing can replace your presence in their lives, but you can make sure that financial obligations are not their number one concern in the event of your death.

“The number of Americans with life insurance policies is atits lowest level in 50 years, and 30% of Americans have no lifeinsurance at all.” -MSN 2010

How Does the Employer Win?

Employers are able to add additional benefit options at no direct cost which will help with retention and morale of employees

Employers save money by reducing their taxable payroll, thus diminishing FICA taxes

When your employees sit down on Sunday morning to read the paper,

will they be looking at the comics or the want ads?

Implementation

Census Enrollment Group Presentation•Employer provides list of employees•Each employee receives a 30 minute individual consultation

•Employer gathers all employees for 30 minute presentation•15 minute follow up consultation with each employee

Follow Up•10 minute follow up meeting with employer to deliver payroll deductions