Group Benefit Package

Presented for:

Preferred Choice Financial Group

Mission Statement

To provide my clients with the necessary information and guidance to secure their family’s future in case of an unexpected event.

Liam O’Brien

The services I provide my clients

FOUR CORNERSTONES OF FINANCIAL SECURITY

Wealth creation and management

Wealth protection

Retirement

Estate Planning

Liquidity

Living Benefits

Definition of Insurance

Insurance is a device to minimize risk of uncertainty regarding loss by spreading the risk over a large enough number of similar exposures to predict the individual chance of loss

The Importance of Insurance

The importance of insurance to protect and individual’s, family’s or business from financial hardship in the event of a loss of a large dollar amount

A sever car accident which may cause an individual great financial loss… Average medical costs due to

a sever car accident; approximately $50,000 and up

The high costs of borrowing

Loan Amount Cost over 10 years Cost over 20 years

$50,000 $74,906.61 $112,220.01

$100,000 $149,813.22 $224,440.01

$200,000 $299,626.44 $448,880.03

Using an %8.25 semi-annual interest rate

This shows the importance of insurance for financial security…

Employee Benefits

Health Insurance Group Term Life Insurance Supplemental Health Insurance

Money Savings with Employee Benefits

Payroll taxes for your workers’ compensation, unemployment insurance and FICA contributions could be as much as 10% of payroll.

Pre-tax benefit payments will reduce your employee’s taxable income and as a result reduce your contributions.

Employer Tax SavingsAverage Monthly Redirected Premium per Employee

# of Employees $100 $150 $200 $250 $300

10 $1,200.00 $1,800.00 $2,400.00 $3,000.00 $3,600.00

20 $2,400.00 $3,600.00 $4,800.00 $6,000.00 $7,200.00

30 $3,600.00 $5,400.00 $7,200.00 $9,000.00$10,800.0

0

40 $4,800.00 $7,200.00 $9,600.00 $1,200.00$14,400.0

0

50 $6,000.00 $9,000.00$12,000.0

0$15,000.0

0$18,000.0

0

100$12,000.0

0$18,000.0

0$24,000.0

0$30,000.0

0$36,000.0

0

200$24,000.0

0$36,000.0

0$48,000.0

0$60,000.0

0$72,000.0

0The chart is based on a combined Social Security (FICA) and federal unemployment

(FUTA) tax rebate of ten percent. Additional state and local taxes may apply in some states which could affect overall tax savings.

EMPLOYEE SAVINGS WITH PRE-TAX DEDUCTION PLAN

(Based on $1,000 a month income)

Employee Tax SavingsWithout

Premium Pre-tax Plan

With Premium Pre-tax Plan

Monthly Pay $1,000 $1,000

Insurance Premium(before taxes) $0.00 ($100)

Taxable Income $1,000 $900

Federal Income Tax(25%) ($250) ($225)

$750 $675

Insurance Premium(after taxes) ($100) $0.00

TAKE HOME NET PAY $650 $675

Monthly increase in take-home pay $0 $25

Annual increase in take-home pay $0 $300

Health Insurance

Importance of Health Insurance

Health insurance is important because coverage helps people get timely medical care and improves their lives and health.

Overall, uninsured people get about ½ as much care as privately insured people.

Uninsured adults get fewer preventive and screening services and on a less timely basis– this leads to the uninsured to be MORE sicker and

more apt to die prematurely than their insured counterparts

What does Health Insurance Cover?

Health Insurance covers a lot of different things such as:– Routing check-ups; which can help reduce the

possibility of getting sick and prolong life– Cover medical expenses due to an emergency

or an illness– Help people get timely medical care, than those

without insurance.

Group Term Life Insurance

Life Insurance at a glace

Life insurance takes the financial burden off of family members to worry about how they are going to pay for things such as:

• Funeral expenses• Final medical bills• The loss of income due to the death of the bread winner

Life insurance can help your family deal better of the stress that the loved one has past away…

Group Term Life Insurance- from Liberty National

Guaranteed Rates – once you purchase the plan your rates will not increase

Your coverage can never be reduced or cancelled as long as you pay premiums

You can continue your coverage after you leave employment

Up to $50,000 of insurance protection available

Supplemental Health Insurance

Market Summary

Market: – The average yearly deductable for health

insurance is approximately $5,000

Why is supplemental health so important?

Problems and opportunities:– Many people find it difficult to pay for their

deductable in the event of a traumatic even, such as a car accident or the development of cancer.

– People also find it difficult to pay bills when the bread winner is either incapacitated or distracted by the tragic event.

– Supplemental Health Insurance can aid these burdens by providing available funds to the insured.An example of this would be:

Jane works for the local law firm and finds out she has developed cancer.The average cost for cancer treatment start at approximately $5,000.

(cont’)

Jane and her family have a medical deductable of $5,000 before the insurance company will begin to cover any major medical coverage. Jane and her family must now come up with this amount and still pay the bills…“…how does supplemental health insurance help?..” you

ask…By paying the insured directly anywhere from $5,000 to

$15,000 (depending on the policy), to help pay for the treatments along with other expenses…

This takes a HUGE stress of the family, and allows them to help Jane through her treatment…

Summary

Insurance is important to provide financial security to someone and/or their family

Benefits package includes:– Affordable Group Term Life Insurance– Health Insurance; Tailored to the individual’s

needs.– Supplemental Health Insurance; to cover

addition medical expenses.