SOURCE: Ebenefits Direct, Inc.

May 30, 2007 12:59 ET

Ebenefits Direct, Inc. Announces New Corporate Overview

BOCA RATON, FL--(Marketwire - May 30, 2007) - Ebenefits Direct, Inc. (PINKSHEETS: EBFD) (


High Costs and the Change in Focus to the Individual Policy

The health insurance industry plays a vital role in the United States. Health insurance covers over 225 million Americans and each year there is an increase in the amount of Americans that become uninsured. According to the U.S. Census Bureau, August 2005, there were 45 million, uninsured Americans in 2004. This has created a huge marketplace as more and more people strive to find a health insurance solution that makes sense to them.

The company is looking to capture a significant percentage of the health insurance market. This will be accomplished through its Direct-Response Retail channel. The company sells health and life insurance products throughout the United States and will offer a multitude of product offerings including the top health insurance carriers such as United Health Care, UHC-Golden Rule, Humana, Assurant and Aetna, The Company will focus on providing the best health and life insurance solution based on a needs analysis.


Affordable Financial Protection

Life Insurance provides future financial security for individuals and families. These include permanent and term life insurance products. Term life insurance provides a death benefit to beneficiaries for a specified period of time. This provides financial protection at affordable pricing. Permanent life insurance provides long-term financial protection, a fixed death benefit and a cash value that the policyholder can borrow against.

Ebenefits Direct is also introducing to financial service professionals, an online System to quote and sell life insurance products to their clients. Using these "alternate distribution channels" Ebenefits Direct will be able to receive high commission income through licensed financial service professionals who prior to this had not incorporated the sale of life insurance in their business. Ebenefits Direct has begun to sponsor these highly qualified individuals for their training leading to their licensing. Training in sales techniques will also be provided. The online system is a highly simplified quote and prequalification system, where the financial services professional never has to personally see the client, with all medical underwriting provided by third parties contracted for this purpose.


Affordable coverage for the Uninsured

The Medical Discount industry serves a major importance in the United States by providing an alternative healthcare solution to individuals and families who are uninsured because of affordability or they cannot qualify for major medical health insurance. According to the U.S. Census Bureau, August 2005, there were 45 million, uninsured Americans in 2004. Discount health and services programs are not insurance and are not designed to replace it. Due to a healthcare industry that is constantly changing more and more Americans will seek out other healthcare alternatives as they may have been declined due to pre-existing condition, or simply cannot afford the high cost of health insurance.

It is important that when choosing a medical discount program, the consumer does research to ensure that the company is reputable. There has been a positive compliance movement in the industry as many states require approval to offer medical discount plans. In Florida, for example, as of April 2, 2007, there are currently forty-six discount medical plan organizations (DMPOs) that have been filed and approved according the Florida Department of Financial Services. More and more Americans are forced to find alternative healthcare solutions because of affordability issues or a health condition that prohibits a consumer from obtaining major medical insurance. As a result, Discount healthcare programs and memberships are growing at a very high rate. There is much competition in the discount healthcare market; however, due to recent compliance changes, several companies have left the marketplace. In Florida, DMPOs include Ameriplan, Capella Group, Cinergy Health, Careington International Corporation, International Association of Benefits and the Right Health Plan.


Individual versus group plans

Traditionally, Dental Insurance (not discount plans) was only obtainable from an employer-based group dental insurance benefit plan. The rationale was simple -- the more people in the group plan the less "adverse selection" the insurance company would experience. That is, some of the employees would not need as much dental repair as others, allowing the premiums collected to exceed the costs of the dental care. "Direct" coverage to individuals and their families was not obtainable.

This has changed, with Ebenefits Direct now offering two dental insurance plans to be sold through its call centers which combined, will offer coverage throughout the United States. One is a DMO (a "dental maintenance organization") where the insured receives care from a participating dentist "in network" only. Thousands of dentists conveniently located near the insured's home are participating in the plan. The other dental plan is an "indemnity" plan. This allows the insured to obtain dental services from any dentist with reimbursement obtained from the insurance company, often paid direct to the dentist.


Ebenefits Direct, Inc. (PINKSHEETS: EBFD) is a nationwide leader in the direct marketing and distribution of a wide range of health and life insurance products to individuals, families and groups. Ebenefits Direct, Inc. has revolutionized the way health and life insurance has historically been sold. Ebenefits Direct, Inc.'s approach is through many mass distribution areas such call centers, the internet and massive lead generation programs.

Ebenefits Direct is a fast growing direct response marketing organization and Technology Company. By utilization of its many call centers across the country it enables an individual to efficiently purchase health and life insurance as well as medical and discount service programs.

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