This week we have a quick story from an advisor who received their very first C.A.L.E.B. Plan Audit test. It just happened to be for a group our advisor partner was about to go see for renewal.
C.A.L.E.B. is a machine learning assistant, always on and supporting our advisor partners in the background. Every night C.A.L.E.B. reviews all of your group files, runs benchmarking and checks against what it's learned to bring you insights that could become valuable recommendations.
In this case one of the insights was related to Long Term Disability coverage. The plan, as many plans do, has an elimination period of 119 days. This means that employees would need to be "disabled" for 119 days before they were eligible for payments. This is a very common plan provision that we benchmark and in this case, it had been the standard for nearly 10 years with this group plan. The reason however behind why so many policies were set up this way was simple, to align with the standard benefit period that Employment Insurance (EI) would last an employee.
However, things change, and effective January 1, 2017, the Government of Canada announced the EI waiting period would be reduced from two weeks to one week. As a result of this change, there was a new gap in coverage of one week between the end of EI benefits and the start of LTD benefits, potentially bringing consideration for the new preferred elimination period from 119 to 112 days.
Our advisor partner shared this information with their client back in 2017 however it often takes a strong recommendation and push to enact change on even simple considerations. It’s by no means a requirement to change coverage but C.A.L.E.B. provided the insight that it may be best to either:
“Communicate to employees that a gap in coverage exists or decrease elimination period to 112 days.”
In this circumstance the employer was grateful that the advisor brought this back up as although the gap hadn’t been realized by any employees yet, it did not match the intention of the benefits plan. Right then and there, from a simple insight produced by C.A.L.E.B. and approved as a recommendation by our advisor partner the Long Term Disability policy was priced and amended to 112 days, closing the gap and increasing coverage for that group of employees.
This was a great case study success for our Advisor Partner, their client and exactly the type of positive change we hope to make, at scale, with our technology in the hands of our expert Advisor partners.
To explore if this circumstance or similar risks exist in your client block of business you can search all C.A.L.E.B. Insights across all clients and prospects to see specific insights, here’s how:
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