The best group insurance there is is quite simply the one that meets the needs of your business as well as those of your employees (no matter how many). Some elements of said group insurance are well known, while others deserve your attention if you want to fully understand the importance of guarantees.
When we compare the costs of the Régie de l’assurance maladie du Québec (RAMQ) with those of group insurance, it is easy to see thatit is much more advantageous to have a group insurance program at work covering at the same time the salary, the drugs, the paramedical care, and others.
It is also important to know that Quebecers must be covered by a drug insurance plan. On this subject, our drug insurance plan covers individuals who do not have access to a private plan. However, if a company offers its employees group drug insurance, the employee under the age of 65 is obliged to subscribe to it. If you are not enrolled in such a plan, but your spouse is, you must enroll in it.
Here are the most common types of coverage in the field of group insurance:
- Employee life insurance (to be determined by the employer; usually once the salary)
- Life insurance for dependents
- Deaths and mutilations in the event of an accident DMA (usually once the salary)
- Critical illnesses (covering a minimum of three illnesses)
- Long Term Disability Insurance (LTD)
- Short-term disability insurance (STD)
- Diseases
- Dental care
- Travel insurance
The cost of these different guarantees varies depending on a multitude of elements and factors. Among the coverages offered, some are priced according to the demographic characteristics of the group. Depending on the size of the latter, this means that claims are likely to have little or no influence on the premium rate. The cost of these guarantees therefore varies according to the relatively stable characteristics of the group, characteristics such as the age of the insured, their sex, or even the “insured volume”, etc.
Other protections group insurance
Group experience determines pricing depending on the complaints charged to it below the pooling thresholds. For these guarantees, the premiums received by an insurer, less costs, must generally cover the claims paid to the insured. Thereby, the more claims a group has, the higher the cost of guarantees. In order to make employees aware of this state of affairs, the AssuranceCollectiveEnLigne.ca offers information sessions in collaboration with employers.
The fiscality group insurance
There are three types of tax coverage. No matter which one, the premiums paid by the employee are never deductible. In fact, the first type covers life insurance as well as critical illness insurance. For federal and provincial tax purposes, the portion of the premium paid by the employer constitutes a taxable benefit.
The second type of coverage is an exception in tax laws. More specifically, it concerns disability insurance cover. If an employer pays part (or all) of the premium for such a guarantee, the benefits become taxable (rather than generating a taxable benefit).
The last type of coverage for tax purposes is health insurance and dental insurance. If the employer pays a premium for this guarantee, it will constitute a taxable benefit (only for Quebec tax purposes). This is the most common reason for the difference in employment income between a T4 (federal) and an RL-1 (Quebec) for an employee. Note that all benefits are then tax-free.
Group insurance plans at a glance
| Guarantee | Typical monthly cost |
|---|---|
| Priced according to the demographic characteristics of the group | |
| Life insurance of the member
Example:
|
$ 0.10 to $ 0.60 per $ 1,000 |
| Death and dismemberment insurance in the event of an accident (DMA)
Example: |
$ 0.03 to $ 0.06 per $ 1,000 |
| Life insurance for dependents
Example: |
From $ 1 to $ 4 (10 times cheaper if children only) |
| Long Term Disability (LTD)
Example:
|
$ 1.50 to $ 3 per $ 100 of monthly benefit |
| Priced according to past complaints | |
| Short Term Disability (STD)
Example: |
$ 0.30 to $ 1 per $ 10 of weekly benefit |
| Disability according to past claims and status (individual, single parent, couple, family) | |
| Sickness
Example:
|
From $ 50 to $ 800 |
| Dental care
Example:
|
From $ 20 to $ 100 |
In conclusion
Does your company already offer group insurance, but you have some doubts about the competitiveness of its structure? Does its price seem slightly high to you? Has your broker suggested to you that this is the best you can do this year?
Modern small and medium-sized businesses want to save as much as possible on their operating costs. Group insurance (as well as its administration) not only represents a certain cost, but it also meets a need. It is therefore necessary to offer it to its employees.
More than 1,300 Quebec companies trust AssuranceCollectiveEnLigne.ca. What are you waiting for to join them? We have at the same time the tools, the team (formidable team), the Customer service (recognized), as well as a certain notoriety acquired with various insurance companies in order to obtain the best for your company, and only the best.
Submit a quote now. You too can say: “I now understand the many advantages of working with AssuranceCollectiveEnLigne.ca!” “
Did you know that you can change insurer easily, and… quickly? Most of the time, doing business with a new insurer involves a colossal amount of work that we would gladly do without. Thanks to the group insurance premium comparatorAssuranceCollectiveEnLigne.ca, that time is now over.
Do not wait any longer! Do not hesitate to contact our Customer Service at 1 855 230-6233, or contact us by email at contact@assurancecollectiveenligne.ca to let us know your questions.
