GROUP BENEFITS

Businesses who wish to use the traditional insurance approach can get Extended Health, Dental, LTD and Life coverage on a ‘group' basis. Costs are based on your group's average age, sex, occupation and industry that you are in. The cost ‘pool' that the insurer puts you in can also affect the rates that they charge.

Costs can and usually do increase each year due to increasing service provider costs (eg. dentists annual fee guide increases), the increasing average age in your group and your group's claims experience. Also affecting the increase in rates are the changes to government benefits provided to your employees (eg. chiropractors no longer being covered by MSP).

Benefits & Taxation

Life: Sum insured may be a flat amount, a multiple of earnings or a minimum of $25,000. Premiums are paid by the employee and the benefit at claim is tax free.

LTD: Shown as a % of income (eg. 66.7%) up to a monthly maximum. Premiums are paid by the employee and benefit at claim is tax free. Benefit starts after 120 days and available for 2 year, 5 year and to age 65; benefit periods.

EHC & Dental: Shown as a description of actual services covered, often sharing the cost with employee through a % or co-insurance factor (eg. 80%). Premiums are totally tax deductible to the business. Benefit at claim is tax free to the employee.

Weekly Income: Short term disability plans that start after 7 days and usually pay for 119 days at a % similar to the LTD. This benefit can qualify the business for a reduction in premiums paid to EI. Premium can either be paid by the employer and tax deductible to the business while the benefit paid at claim is taxable to the employee; OR paid by the employee with the benefit being tax-free at claim.

Note: Every group plan is different. Contact Ken MacCoy, RHU, RHU  for a comprehensive "No Obligation" review and market survey to determine if you are indeed getting the best coverage for the most competitive premium.