How to get the best group insurance
employer having selected the best group insurance
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 that it is much more advantageous to have a group insurance program at work. covering both salary, medication, paramedical care, and more.
It is also important to know that Quebecers must be covered by a drug insurance plan. In this regard, 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 a DMA accident (generally 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 warranties varies depending on a multitude of items and factors. Among the coverages offered, some are priced according to the demographics 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 group insurance protections
The group's experience determines the 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. Thus, the more claims a group makes, the higher the cost of guarantees. In order to make employees aware of this fact, the AssuranceCollectiveEnLigne.ca team offers information sessions in collaboration with employers.
The taxation of 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 coverage. If an employer pays part (or all) of the premium for such a benefit, the benefits become taxable (rather than generating a taxable benefit).
The final 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:
Multiple of salary
Fixed amount
$ 0.10 to $ 0.60 per $ 1,000
Death and dismemberment insurance in the event of an accident (DMA)
Example:
Same amount as life insurance $ 0.03 to $ 0.06 per $ 1,000
Life insurance for dependents
Example:
$ 5,000
$ 10,000
From $ 1 to $ 4 (10 times cheaper if children only)
Long Term Disability (LTD)
Example:
Taxable: 66.66% to 75% of salary (with maximum in dollars)
Non-taxable: 60% to 66.66% with decreasing steps
From 1.50
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