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 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 toyour employees (eg. chiropractors no longer being covered by MSP).
Benefits & Taxation
Life: Shown as a multiple of earnings or a minimum of $25,000. Premiums are employee paid and benefit at claim is tax free.
LTD: Shown as a % of income (eg. 66.7%) up to a monthly maximum. Premiums are employee paid and benefit at claim is tax free. Benefit starts after 120 days through to age 65.
EHC & Dental:Shown as a description of actual services covered, often sharing cost with employee througha % coinsurance factor (eg. 80%). Premiums are totally taxdeductible to the business. Benefit at claim is tax free to the employee.
Weekly Income: Short term disability plans that start after 7 days and pay to 4 months usually at a % similar to the LTD. This benefit can qualify the business for a reduction in premiums paid to EI. Premium is paid by the employer and tax deductible to the business while the benefit paid at claim is taxable to the employee.
Note: Every group plan is different. Ask us to look at your plan your current plan and tell you what you have and do a current group quote for you.