Employee Group Benefits Plans
Employee Group Benefits Plans are a very valuable asset for every business that provides a number of health benefits to the employees. Group Employee benefits are provided by employers to their employees to help them cover the cost of medical services that provincial health care plans may not cover, including prescription drugs, dental and vision care, hospital, paramedical, ambulance services, Short-Term and Long-Term Disability Insurance, Critical Illness insurance and many more depending on the plan type. The following are some of the common forms of group insurance plans:
- Group Supplemental Health Insurance Plans
- Group Dental & Vision Care Plans
- Group Accidental Death & Dismemberment Plans
- Group Long-Term Care Plans
- Group Life Insurance Plans
- Group Disability Income Plans
- Group Critical Illness Plans
- Group Travel Insurance Plans
Canadians are fortunate enough to have provincial health care coverage for many health expenses but it only pays for your basic healthcare services and needs. Each province provides different coverage types and amounts and there are gaps that can impact your finances significantly. That’s when employee group insurance plans can be very helpful to reduce the financial strain caused by routine or unexpected health care expenses. Employee Group Benefits plans help employees manage healthcare expenses not covered by provincial health care plans; hence protecting them from the financial hardship of having to pay out-of- pocket for medical expenses.
If you are a small business owner you can buy a group benefits plan for your employees. A single contract will cover an entire group of employees. The employer will be the policy owner and will keep the actual insurance policy, known as the master contract. All the employees covered under the master contract will usually receive a certificate of insurance that serves as proof of insurance. You need as little as two employees including yourself to be eligible to purchase these plans. Full-time, part-time and contract workers all are eligible to participate in these plans. The cost can be shared by both the employer and the employee. Group Benefits plans are often more cost-effective compared to individual insurance plans as the size, turnover and financial strength of the group is taken into consideration at the time of underwriting instead of individual proof of insurability. As a result everyone is included and gets the coverage and all employees pay the same amount of premium for the same coverage, regardless of their age, health or other factors. This feature of group insurance makes it very valuable for hard to insure employees who otherwise are uninsurable under standard life, disability or critical illness insurance plans due to pre-existing health conditions. Employees will remain covered as long as they continue to work for the same employer and pay the required insurance premiums. These plans can include some or all of the following benefits:
| Health and Dental Benefits | Additional Optional Benefits |
|---|---|
| Prescription Drugs: Provides reimbursement for prescription drugs. | Term Life Insurance: Provides basic coverage amount depending on plan. |
| Vision Care: Covers cost of prescription eyeglasses or lenses. | Dependent Life Insurance: Provides coverage for spouses and kids. |
| Dental Care: Covers partial or full dental care expenses like cleaning, filling & X-rays as per your selected plan. | Disability Insurance: Provides a percentage of your monthly income in case you become disabled. |
| Medical Services and Equipment: Covers necessary medical services & equipment prescribed by your doctor. | Accidental Death & Dismemberment Insurance: Pays a benefit in case of death or loss of a limb in an accident. |
| Hospital Expenses: Covers all hospital costs not covered under your provincial health plan. | Critical illness insurance: Provides a lump-sum payment if you get diagnosed with a serious medical condition covered by your plan. |
| Paramedical Expenses: Covers eligible paramedical expenses like chiropractors and physiotherapists as per your plan limits. | Fracture Accident Benefit: Provides a lump-sum in case of fracture related injuries. |
| Travel Insurance: Provides emergency medical travel insurance coverage as per your plan. | Hospital Cash: Provides daily cash benefit for the duration of an insured’s hospital stay. |
Why Provide Group Benefits To Employees?
Employees are an integral part of every business and their workplace satisfaction is really important for a better job performance. Employee benefits plans not only help attract top talent but also to retain employees and maintain workplace morale. Employee benefits protect your most valuable asset- your people and help increase employee focus and productivity. Your employees will benefit from the low cost group plans because benefits are evenly distributed among the group and hence premiums are more affordable than personal health and dental plan. Following are the Here are the main reasons small-business owners should offer group benefits:
1. Helps attract and retain employees: Employee Benefits will help you to attract, retain and engage the employees which further helps in minimizing costs associated with high turnovers.
2. Helps protect your most valuable asset: Your employees and their health is your most valuable asset and when you show them that you care employees also appreciate that and this results in increased productivity and less absenteeism.
3. Helps Increase employee focus and productivity: Group benefits plans provide the help to the employees and their families when it’s needed the most so they can focus on work. This results in happy and stress-free employees that are more focused and productive.
4. Provide coverage at a reduced cost: Group insurance plans premiums are more affordable than individual health and dental plans and provide same coverage to all the employees in the group irrespective of their age or health conditions.
5. Helps build and maintain morale and loyalty: When employees feel appreciated, valued and supported it helps to build and maintain their morale. Group benefits help to increase employee morale and long term loyalty in a company.
6. Provide customizable coverage: Employees can customize their coverage as per their situation. They can change their coverage if there is any change in their life or family situation.
7. A tax effective way to compensate the employees: Health and dental benefits are tax-free for employees and premiums paid by employers are tax deductible as a business expense.
Accidents or illness can occur at any time and when they do, unforeseen costs due to hospitalization may place a financial burden on employees and their family. Employee Group Benefits plans help reduce the financial strain caused by sudden medical emergencies due to illness or accidents. We work with all the leading insurance providers and can help you choose the right plan that fits into your budget perfectly along with one that meets your business needs. At Family Care Insurance, we work for you and not the insurance company. We will customize a cost effective plan to your business specific needs.