Why is Group Insurance the Ultimate Solutions for Employees in Canada?

We all know that life is uncertain; and thus, we should buy a life insurance plan. Similarly, we know that our health can deteriorate anytime; so, we should get medical insurance, or purchase personal injury insurance, or maybe supplemental insurance as well. Now, we all understand it is essential, but at the same time, the premium amount would be huge. What if someone else will pay for them? Yes, with Group Insurance plans, your employer will pay for an insurance plan that will cover you. You may wonder – why? So, in this article, we will discuss what group insurance is, how you and your employer will be benefited, and is this the ultimate solutions we are seeking.

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What is Group Insurance, anyway?

What we understand about Group Insurance; it is a regular insurance plan that covers a group of people. Typically, if you are an employee working in a company, your employer provides a group insurance plan for you and your colleagues. Now, group insurance can be of any kind; life insurance, health insurance, supplemental insurance, and many more. So, when we are talking about a group insurance plan, it depends on the nature of work you do. Suppose you work in an IT firm; it is expected that your boss will apply for group term insurance plan instead of a group personal injury plan, which typically chose when you work in a factory.

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Why do we choose group insurance over individual insurance plans?

A group insurance plan provides coverage for a group of people. Typically, it is offered by a business entity to its employees, so that the employees will get coverage, in the event of any unfortunate incident. Meanwhile, both you and your employer get some primary benefits while choosing group insurance. So, let us discuss what those benefits are.

  • Benefits for the employees: The most significant benefit that you will get is you don’t have to pay for the insurance while you will get the coverage. However, there are some optional plans where you have an option to choose for some additional coverage. In that case, you may need to pay; other than that, your employer will pay your insurance premiums. Additionally, you will get some tax benefits when you accept group insurance from your employer. In the case of health insurance, you don’t have to go through medical check-ups to prove you are in good health. So, overall, it is a cracking deal, especially when you don’t have any other insurance coverage.
  • Benefits for the employers: If you are an employer, you may wonder how it is good for me if I have to pay insurance premiums of all my employees. To answer that, you should know that if you are a business owner and you need employees to run your business, then the Canadian Federal Government made sure that you must provide insurance coverage to all your employees. This rule applies to almost every industry apart from a hand few. Either way, you must have to provide insurance coverage to all your employees. Now, when you choose individual insurance plans such as medical insurance, term life insurance or personal injury insurance, all separately, it will cost you much more money. So, it is wise to group insurance, where a group of people, which in this case, your employees will get the coverage for any insurance plan you choose. This phenomenon will create goodwill among your employees and will motivate them to work for you. Additionally, you will get a massive tax rebate depending upon the group insurance plan you choose.

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The key terms and conditions to get the coverage

We all must know; any insurance plan is built with an intention to earn profits. So, in the case of any group insurance plan, the same rule applies. Let us know what the fundamental terms to get the coverage are:

  • If you are an employee, you must be active in work and have worked a minimum of 20 – 24 hours per week to claim group insurance.
  • If in case you want an additional coverage which is not included in the plan, the employer must deduct that fee from the payment you receive.
  • The employer must pay a particular number of premiums to get the coverage. That specific number of insurance premiums varies from each plan, with the type of coverage the employees will receive.
  • All the paperwork, both digital and hard copies, must be valid and available to claim the insurance.

The conclusion

Group insurance is a fantastic initiative, and every employer and employee should implement it. So, whether you already have an insurance plan or not, you should get it whenever your employer deploys it. Meanwhile, as an employee, you must know the terms and conditions of the insurance plan, and just like the employers, you should have all the documents handy. Finally, there is no doubt that group insurance is the ultimate solution if you work somewhere; however, in case you are a freelancer or a professional, typically, group insurance is not for you.