What is group insurance?

Your employer may have just suggested that you join the company’s group plan, or you are an employer yourself and are thinking of offering group insurance to your talents. But how does it work ? Follow the leader !

What is group insurance?

Group insurance is an insurance contract taken out by an employer for the benefit of its employees and their families. It provides additional protection, whether to supplement individual private insurance, RAMQ or other programs offered by the government. Note that group insurance only protects personal risks, not property risks. It covers the expenses of the employees according to the terms of the established contract 24 hours a day, 7 days a week, whether or not they are at their place of work.

In the case of group insurance, the contract therefore belongs to the employer who opens an account for all of his employees and not just one person. The subscription is the same for everyone. Employees therefore do not need to provide evidence of good health. The employer pays part of the premium and the other part is generally deducted directly from the salary.

Spouses and dependent children of insured employees may also benefit from group insurance if requested. Since it is an insurance issued under an employment contract, it ends at the same time as the latter.

What about employers?

It is not mandatory for Quebec companies to offer group insurance to their employees. However, although joining a group insurance plan represents a certain cost, it also has some great advantages:

  • Guarantee the well-being and health of your employees
  • Minimize repeated absences and promote rapid management of health problems that your employees may experience
  • Improve your employer brand: many talents are now looking for companies that offer them a safe and healthy work environment, and being able to benefit from group insurance is now part of the search criteria for hiring. It is also important to retain employees who are already part of the organization.
  • Benefit from certain tax advantages

How it works ?

As an employer, you and your insurer define the eligibility criteria for benefiting from the group insurance plan. For example, you can determine that full-time contracts must wait until they have completed their probationary period before they can be signed up for.

As mentioned above, the premium remains fixed throughout the contract. Your insurer records the benefits paid to your employees under the group plan to potentially offer you an adjusted rate at the end of the contract, at the time of renewal. You then have the option of accepting or requesting another company.

To find the plan best suited to your business, you can call on a group insurance brokersuch as Assure direct, which will compare different insurers for you in order to offer you the best conditions at the best price.

What does group insurance cover?

Each employee can choose the protections to which he wishes to subscribe among the coverages offered under the group insurance plan offered by the company:

  • Employee life insurance;
  • Dependent life insurance;
  • Accidental death and dismemberment insurance;
  • Health and critical illness insurance;
  • Long-term disability insurance;
  • Short-term disability insurance;
  • Dental care insurance;
  • Travel insurance.

Note that it is mandatory for employees under the age of 65 to take out drug insurance, either with their company’s group insurance or that of their spouse. If the two spouses are not offered insurance by their company, the public plan will then take over.

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