Having a group insurance cover for your employees can be quite a competitive edge in the employment market. Furthermore, employees get to work with peace of mind since they know that their medical expenses and that of their family is well covered by their employer. Besides this, an employer can use the group insurance Canada cover to provide a tax effective benefit to their employees. Most group insurance Canada policies are an allowable business expense for tax purposes.
Another major advantage of taking a group insurance cover is that the effective cost of premiums to an individual employee is much cheaper than taking individual covers. Furthermore, some group insurance Canada policies provide guaranteed issue limits. With this guarantee, the insurance company gives cover to a limited number of employees without verifying the insurability of such employees. This is quite helpful for an employee who would otherwise not access the cover due to preexisting conditions if they sort a cover individually.
Considerations When Choosing a Group Insurance Policy
There are many considerations that employers should look out for besides the premiums when choosing a group policy for their employees. The first thing that an employee needs to determine is the type of cover to take. There are diverse group insurance Canada policies available including group life insurance, group disability insurance, group health and dental, vision coverage and many more. The type of group cover to take for your employees will depend on the budget allocation for such a benefit, the needs of the employee and the general trend in your industry. To get an optimal coverage for your employees, you may consider hiring the services of a qualified specialist.
Besides the type of cover to take, you will also need to choose the company to take a group insurance policy with. You may also choose to purchase the policy directly from the group insurance Ontario or group insurance Toronto insurance company or take the policy through a broker. You do not need to take the separate covers with an individual insurance company as some companies may be better suited for some policy types than others. However, if you choose to have a broker, it will save you on administrative processes if you go for a single broker to handle all group insurance types. A broker may help in following up claims and resolving exceptions in a policy.
You also need to keep reviewing your group insurance plan periodically to take care of growing employee needs, changes in employee structure and changing market trends.
When going for a group health insurance, you will need to choose between a fully insured group health and health spending accounts policy. The fully insured group policy covers for the whole of the qualifying health cost that may arise if an employee falls ill. On the other hand, the spending account is a contribution made by the employer towards the employee health and the employee depletes the account with consequent health costs. The spending accounts can also be used as an extra over the group health policy or provincial health plan to help the employee fund for non covered health related costs.
Other considerations that an employer needs to make concerning the group insurance Canada policy is the value add services provided by the insurance company. Some group insurance Toronto and group insurance Ontario companies provide a convenient online portal to enable employees make claims in a simplified way. The employees can also track the claim progress from the same online platform. The reputation of the group insurance Toronto and group insurance Ontario company is also important consideration. Some companies have a reputation of processing claims fast and you will want to partner with such companies.