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... Term, Whole, or Universal Life to Disability Income products and 401 (k ) plans. An agent can sell just one of these products on a payroll deduction basis, or a combination of them. The agent can also sell specialized payroll deduction plans such as Section 125 plans (these plans are discussed later in this campaign) . The concept of payroll deduction is simple: An employer provides employees the opportunity to purchase these products by paying premiums out of each paycheck. Premiums are automatically deducted from the employee's pay. Most ... , these plans are used as a supplement to the insured's company-paid Group plan. The variety and arrangement of plans available depends on the insurance carrier through which the plans are written and the type of plan offered. The agent's role in selling these plans can also vary-from just selling the idea to the employer and then letting an outside enrollment firm handle employee sales and administration to selling and administering the plan entirely alone. Most agents choose the former course because the administration of such a program entails specialized knowledge and much work. The plans ... uniqueness. They have advantages and disadvantages that are distinct from regular payroll deduction Life or Health insurance plans. In fact, these plans are not payroll deduction plans in the real sense; they are payroll reduction plans. The plans, which are also known variously as cafeteria plans or flexible benefit accounts, are formed under Section 125 of the Internal Revenue Code, which permits an employer to enable employees to pay for certain insurance premiums before taxes, instead of after taxes. The code restricts eligible benefits under these plans to Group Medical ...

...d payroll deduction plans such as Section 125 plans (these plans are discussed...ated and reliable. See the following section on 'How to Choose a Payroll Deduc...