For the employers:
• attracts and helps retain valuable employees, reducing turnover costs
• costs are relatively moderate and are a tax deductible business expense
• most plans are easy to install and administer
• helps employer meet the moral obligation of assisting the families of disabled or deceased employees
For the employee:
• Employer pays all or part of the cost
• Except for life insurance, the premium amounts paid by the employer are not a taxable benefit to the employee
• Usually no health evidence is required
• Provides coverage for dependant family members
• In certain circumstances, a limited amount of coverage can be converted to personally owned coverage upon termination of employment
Employer-sponsored benefits are a valued source of financial protection for millions of Canadians. However, even a quality group benefit package may contain coverage gaps that leave you and your family exposed to serious financial risk.