125 Cafeteria Plan

[Briefcaseboy]

I have never sold to a group before. I can sell individual policies to a company on a list bill, but have never sold a cafeteria plan. Where can I find the proper steps to write up and sell a cafeteria plan ? I would like to see the forms and the order of processing them.

 

[leevena]

Find a 125 provider in your area and contact them, just like you would a group carrier. You can find out info about them, including their marketing materials, comp, copies of documents, etc.

 

[GreenSky]

Find a GA to work with. They will generally do 80% of the work for you and most have access to 125 plans.

Rick

 

[VolAgent]

A 125 is a good way to confuse an owner or HR person. Stick with selling it list bill or otherwise, introduce 125 next year as a way to save on taxes.

 

[MrMack]

AFLAC will provide it to the company for free if you are allowed to offer AFLAC to all employees.

 

[lmspeir]

You can also use a company called to Core Documents to provide the documents and instructions on how and where to file. Cost of the packet is about $100. Here is the link IRS Section 125 . And, no, I have no business relationship with them except as a customer.

 

[Briefcaseboy]

Ok Core Documents listed above can send any life/health plan documents directly to the employer. Let's say you go to a company and give a presentation on any life or health product, then tell them if they want to use a 125 cafeteria plan, it will reduce the employees taxable income as well as the FICA taxes the employer will have to pay. Then tell them all they have to do is order the forms from Core Documents. Since it is the employer that deducts the premium from the employees pay check, it doesn't seem to me like the insurance company would mind HOW they did it........In other words, why sell any L/H product to employees on an individual basis ?

 

[lmspeir]

Well, there are many reasons employers will not implement any sort of payroll deduction plan. It's a tougher sell than you would think. The employer may still allow you the opportunity to talk to the individual employees.

 

[Briefcaseboy]

Thank all of you for your input on this subject !

 

[Full Throttle]

There is a learning curve, but it's not rocket science. If you are list billing the individual policies, it's as simple as getting a "premium only plan" document. If they don't already have one, it's very easy to get one drafted for very little money.