As an employer you may be looking for a more dynamic and smarter way to offer a group benefit package to your employees. As an employee you may be looking for a benefit plan that is more customized to your own needs than the traditional group plans.

Flex insurance responds to both the need for greater freedom of choice in selecting benefits for the employees as well as a cost-efficient plan for employers.
While flex plans are dynamic and smart they also tend to be more complex to understand. Unlike the traditional plans you use flex credits rather than dollars. In addition you need to know which level of coverage is best and how to achieve the best tax efficiency.

In order to introduce this kind of program is important to have a well-defined communications plan to inform employees of the choices involved and the best way to use the plan. Without this kind of communications the plan may be misused or not used at all.

How does a flexible benefits plan work?Flexible benefit plans allow employees to select the benefits and levels of coverage they want. There is a variety of plans available offering various degrees of flexibility. Some plans allow a broad choice of specific benefits and others actually allow the employees to decide how to spend their employer’s money on benefits.

The advantages of flex plans for Employers: Control of costs through establishing a budget and benefit expenditures, they can also use the plan personally

For Employees: Use the benefits most suitable for you and your family, drop the coverage you don’t need. Enhance the coverage you prefer.
Tax Efficiencies: Flex plans take advantage of tax efficiencies that are not available for traditional group plans. This is to the advantage of both the employer and employee. Traditional plans require the employee to pay for their benefits with tax-paid dollars. This means they must earn the money, pay the tax and then pay for the benefits. The result is that $100 of benefits may cost $140.

Flexible Credits on the other hand, are purchases as they are used, and they are not taxed until they are spent. The employee can get $100 of credits for $100. The way they are taxed will depend how the employee spends them.
Why would employers or employees consider using a Flex Plan?Because there is a very efficient use of corporate and employee dollars there are a number of situations where you might consider using a Flex Plan.
1. Your current plan provides more services than you use. You could reduce the plan to a core plan and add a credits approach. This might also reduce the benefits cost to the employer, important if there is a period of fiscal restraint.
2. Your company would like to add benefits to current program.
3. Your company would like to move from a traditional benefits plan to a flex plan to rearrange current spending and introduce new benefits without increasing costs.

We recognize that this is a very brief introduction to Flex Plans and we invite you to contact us to speak with one of our group specialists.
For more information call 1-866-281-2364 or email us at