Education Centre

Advantages of group insurance

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
  • May provide coverage for dependent 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.