Employers often "shop" their plans to secure the best price and product. However, they are often obtaining competing quotes on old plan designs that are never the most cost-effective.

RFP processes sometimes contribute to this mis-direction. RFPs for LTD, Life insurance and deferred compensation often select the best of the bad apples, or perhaps the "wrong apples". With benefits RFPs, consultants, carriers and TPAs compete for large employer-sponsored plans by responding to set questions. Answers are provided without closely examining the options available for restructuring the plans, and allowing advisors to make a meaningful contribution to the end result.

Restructuring often is the better solution for Long term disability coverage. LTD plans were initially created for the average salary-only employee, so the "buy-up options" can be poorly suited for companies with varied employee populations. When companies build upon these group designs - the plans often become expensive and inadequate for higher-paid employees. Disability claims from higher paid employees, when lumped into the same group plan, also adversely and disproportionately affect the experience rating of a basic LTD plan, and the premiums.

"We helped the client understand that the designs can be working against both the employer and the employees," says Fred Hill. Balser re-design a plan recently that resulted in immediate cost savings of more than $200,000, projected to repeat annually, and maintained the longstanding carrier/employer relationship, which was a plus, and through restructuring, we improved coverage and reduced rates.