Cafeteria Plans (Section 125)

Can you attract and retain the best employees?

Section 125 of the IRS Code contains a provision for most organizations to allow their employees to use tax-free money to pay for their Out-of-pocket Group Insurance Premiums, Un-reimbursed Medical/Dental Expenses (most expenses that are not covered by insurance), and Dependent Day Care.

Tax-savings are realized by both the Employee and the Employer. The Employee does not have to pay Federal, State, FICA and all other payroll taxes on the money they use to pay for the qualified benefits.

Employers save two ways. First, since the Employee is excluded from paying the FICA tax, the Employer does not have to pay the matching FICA amount. Second, Workers' Compensation premiums are reduced because the tax-free money the Employees use to pay for their benefits is not considered wages, thus reducing the Employer's gross payroll.

A Cafeteria Plan can help your company:

• Increase employee satisfaction and improve morale.
• Generate substantial tax savings for both the employer and employees.
• Help you contain Benefit Costs.
• Meet Diverse Employee needs through Employee choice.
• Provide the framework your benefit plan needs to keep pace with changing needs.

Let Advanced Corporate Planning help your business to provide quality benefit plans and Tax savings with the minimum of administrative effort and cost. Advanced Corporate Planning has done the research of the market and chosen AFLAC to provide the most comprehensive and affordable Section 125 Cafeteria Plans for your business and your employees.

For the Business:

• Expand your benefits program without adding costs
• Achieve possible FICA savings and reduction in workers' compensation costs
• Help improve employee morale and retention
• Help meet more employees' economic needs at the workplace
• Help contribute to employees' health through various wellness programs
• Reduce Administrative involvement

For the employee

• Purchase individual, choice-driven coverage at payroll rates
• Have benefits paid directly to the insured, unless directed otherwise
• Obtain plans that may be pre-tax eligible, and are portable and guaranteed-renewable
• Obtain policies that help fill gaps not covered by core company plans

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The Cafeteria

(Note: These specifics describe features available in OREGON policies, your state may differ) click here for more on AFLAC Flex One Cafeteria Plan

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Accident/Disability

Needs:           (from Injury Facts, 2001 edition, National Safety Council)

• Nearly 29% of all injuries resulting in emergency department visits occurred at home, the most common place of injury
• in 2000 every two seconds someone in this country suffered an accidental injury
• For people ages 1 - 34, unintentional injuries are the leading cause of death

Features

• Emergency Treatment
• Specific-Sum Injury
• Accidental-Death
• Initial Hospitalization
• Hospital Confinement
• Wellness
• Plus much more

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Short-Term Disability
Individual Short-Term Disability

Needs:           (from Injury Facts, 2001 edition, National safety council)

• An average of 2,340 disabling injuries occurs every hour of every day during the year.

Features

• Selection of:
  

  Monthly Benefit amount
  Elimination Period
  Benefit Period
  

• Guaranteed-renewable to age 70
• Benefits paid directly to you unless you choose otherwise
• Benefits paid regardless of any other insurance

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Cancer
Limited Benefit Health Insurance
Specified Disease

Needs:           (from American Cancer Society, Cancer facts & Figures - 2001

• In the United States, men have about a 1 in 2 lifetime risks and women have about a 1 in 3 lifetime risk of developing cancer, with about 1,268,000 new cancer cases expected to be diagnosed in 2001.

Features:

• First Occurrence
• Hospital Confinement
• Radiation and Chemotherapy
• Cancer Screening Wellness
• Surgery/Anesthesia
• NCI Evaluation and Consultation
• Home Health Care
• Plus much more

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Hospital Indemnity

Needs:           (from Hospital Statistics (tm) 2002 edition, Health Forum, L.L.C. and An American Hospitals Company, copyright 2002)

• In 2000 an average Hospital inpatient stay cost $1,149.40
• Outpatient surgery accounts for 63% of all operations

Features

• Hospital Confinement
• Surgery (inpatient and outpatient)
• Ambulance
• Wellness (Level 2 only)
• Short Stay
• Rehabilitation Unit
• Heart Attack, Stroke, Coma and Paralysis

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Intensive Care

Needs

• The cost difference between a general hospital room and a trip to the ICU, particularly for coronary and neonatal care, is huge. Beyond the room charges, expenses can soar well above the benefit levels of standard health plans.

Features:

• Daily ICU Confinement
• Daily Sub-Acute Unit Confinement
• Human Organ Transplant
• Ambulance

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Specified Health Event

(Hospital Indemnity Limited Benefit)
Limited Benefit Health
Specified or Rare Disease
(Specified Health Event) Supplemental Specified Health Event

Needs

• Certain Life-threatening health events pose special financial risks due to their statistically high levels of incidence and cost

Features:

• Pays a First-Occurrence Benefit as well as Hospital Confinement and Continuing Care benefits for

  Heart Attack and coronary artery bypass surgery
  Stroke
  End-stage Renal failure
  Major human organ transplant
  Major third degree burns
  Coma
  Paralysis

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Long Term Care

Needs:           (from Fact Sheet: Selected Long Term Care Statistics, 2001 Family Caregiver Alliance )

• The average cost for care is more than $125 a day, approximately $50,000 a year, and rising rapidly. About 46% of the population receiving long-term care are under age 65.
• Doctors and Hospitals are under increasing pressure to release patients to nursing homes as quickly as possible to complete their recovery.

Features:

• First-Occurrence
• Nursing Home Care
• Assisted-Living Facility Care
• Home Health Care
• Adult Day Care
• Adult Foster Care

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Dental
Supplemental Dental Insurance
Limited Benefit Period

(limited Benefit Dental)

Needs:           (from What Everyone Should Know About Selecting and Using Dental Benefits, A Consumer's Guide to Dental Insurance, published by the California Dental Association)

• Good Oral Care - including periodic wellness visits - helps reduce the likelihood of expensive treatment later on. These visits saved Americans nearly $100 Billion in Dental care costs during the decade of the 1980's alone (Advance Data, Centers for Disease Control June 2002)

Features:

• Freedom of Choice (pick any dentist)
• Portability
• Guaranteed-renewable at the same payroll rate
• Pays regardless of any other insurance
• No deductible
• Easy to understand

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Life

Needs:

• Maintain your standard of living and meet emergency obligations (particularly in dual-income households) by providing immediate cash resources.

Features:

• Provides choice of up to $100,000 of quality term life, whole life, or a combination of both on a very competitive basis
• Fully Portable
• Waiver of Premium Benefit (primary insured)
• Accelerated Death Benefit (primary insured)
• Optional Spouse and Child riders
• Optional Accidental-Death Benefit Rider (primary Insured)

10-Year Term Policy or Optional 10-Year Life Insurance Rider to Whole Life policy Choose $12,500, $25,000, $50,000, $75,000 or $100,000 Optional Spouse Term Life Insurance Rider Optional Child Term Life Insurance Rider

Whole Life Insurance choose $10,000 through $50,000   Builds cash value Has guaranteed rates, coverage and non-forfeiture benefits for the life of the policy Includes a policy loan provision Contains an automatic premium loan provision