Exploring the Value of Group Benefit Plans for Your Employees

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In today’s ever-evolving workplace landscape, employees place a premium on several key factors:

1. Alignment with employer values, especially sustainability.

2. Achieving a harmonious work-life balance.

3. Assistance in coping with the rising cost of living expenses.

4. Opportunities for delayed retirement.

5. Cultivating a sense of belonging within the workplace.

6. Flexibility in terms of work hours and location.

7. Ensuring job security.

If your business is experiencing growth and you’re considering adding group benefit plans to your employee offerings, you’re in the right place. We understand the importance of providing the right employee benefits solution for your business.

Understanding Group Benefit Plans and Their Value

Group benefit plans form a crucial part of a company’s total compensation package, available to employees regardless of their seniority, position, or qualifications. These plans often encompass medical coverage for employees and their dependents. While it may seem like an additional expense during a period of growth, offering employee insurance benefits is essential for the long-term sustainability of your business.

So, why should your company consider offering group insurance benefits? Here are some compelling reasons:

1. Convenience: Group insurance benefits simplify healthcare coverage for your employees and their families.

2. Workforce Protection: These benefits provide a safety net for your staff, promoting their well-being.

3. Staff Retention: Offering benefits can help you retain valuable employees, reducing turnover.

4. Tax Benefits: Group insurance plans offer tax advantages for both employers and employees.

5. Customization: Plans can be tailored to meet your business’s unique needs.

6. Morale Boost: Providing benefits can boost productivity and morale among your workforce.

What’s Covered by Group Insurance Plans?

Group insurance plans typically cover medical-related expenses that provincial healthcare plans might not fully address. This coverage can include paramedical and ambulance services, dental care, eye care, hospital stays, and certain prescription drugs. Additionally, you have the option to combine group benefits plans with retirement and savings plans.

Types of Group Benefits Plans

Various types of group benefits plans are available, each catering to different company needs and preferences. The most popular options include:

1. Fully-Insured

2. Self-Funded

3. Level-Funded

No matter the size of your business, there’s a group insurance benefit plan that suits your needs. We offer flexible and innovative plans that anticipate your requirements. Our services aim to reduce your administrative workload, allowing you to focus on critical aspects of your business.

Is Group Insurance Cost-Effective?

One of the financial advantages of group insurance is lower premiums while maintaining coverage equivalent to individual health insurance. Typically, employers cover most of the group benefit plan costs, with employees contributing a small percentage of their salary towards the monthly premium. If you’re concerned about the tax implications of providing benefits at work, it’s advisable to with us for specific details.

In conclusion, offering group benefit plans is a strategic move to attract and retain top talent while promoting employee well-being and financial security. Whether you have a small or large business, we are here to assist you in finding the right plan that aligns with your organization’s needs and objectives.

Protecting Key Talent using Group Benefits

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Building a Sustainable Future Together

As a group benefits specialist, our main objective is to foster a sustainable future by working in partnership with our clients. We believe that a knowledgeable and engaged workforce is essential for any organization’s success. One of the crucial aspects of achieving this goal is protecting key talent within your company. In this article, we will explore how group benefits can play a significant role in safeguarding your organization’s most valuable asset: its people.

The Value of Key Talent

Key talent refers to those employees who possess critical skills, expertise, and knowledge that drive your company’s growth and success. They are the backbone of your organization, ensuring it thrives in today’s competitive landscape. Retaining these valuable individuals is vital as their loss can have a significant impact on your business operations, productivity, and overall morale.

Challenges in Retaining Key Talent

In today’s dynamic job market, retaining key talent can be challenging. Many factors come into play, such as attractive offers from competitors, personal growth opportunities, work-life balance, and employee well-being. As an employer, understanding and addressing these challenges are essential to protect your top performers and maintain a competitive edge.

The Role of Group Benefits

Group benefits can be a powerful tool in attracting and retaining key talent. By offering comprehensive and customized benefits packages, you demonstrate your commitment to your employees’ well-being, security, and future. Here are some key aspects of group benefits that contribute to protecting your key talent:

1. Health and Wellness Coverage

Providing robust health and wellness benefits, including medical, dental, and vision coverage, not only promotes a healthy workforce but also demonstrates your dedication to their overall well-being. When employees feel supported in their health, they are more likely to remain loyal to your organization.

2. Income Protection

Group benefits often include disability insurance, which provides financial protection for employees who might experience an injury or illness that prevents them from working. This security helps ease financial worries during challenging times and creates a sense of stability, encouraging key talent to stay with your company for the long term.

3. Retirement Planning

A well-designed retirement plan is an attractive feature for key talent. It shows that you care about their future and are committed to helping them achieve financial security during their retirement years. Contributing to a retirement plan also reinforces a collaborative and client-focused relationship with your employees.

4. Work-Life Balance Support

Offering benefits that support work-life balance, such as flexible work arrangements, paid time off, and family leave, shows your understanding of the importance of a balanced life. Employees who feel they have the flexibility to manage their personal and professional responsibilities are more likely to stay committed to your organization.

5. Career Development

Group benefits can extend beyond traditional offerings. Consider including professional development and training opportunities within your benefits package. Investing in your employees’ growth not only enhances their skills but also reinforces your commitment to their long-term success.

Educational Approach and Collaboration

Our mission as group benefits specialists is to provide educational and collaborative support to our clients. By engaging in open discussions about your organization’s needs and goals, we can tailor group benefits packages that align with your unique requirements. Together, we can build a sustainable future by nurturing and protecting your key talent.

Protecting key talent using group benefits is not just a sound business strategy; it reflects a client-focused, educational, and collaborative approach to employee welfare. As a group benefits specialist, we are committed to working hand-in-hand with our clients to create comprehensive and customized solutions that safeguard their organization’s most valuable asset – their people. By investing in the well-being, security, and future of your employees, you are not only enhancing loyalty and retention but also building a stronger and more sustainable future for your company. Let’s continue to partner together to ensure a prosperous and thriving workforce.

Insurance Planning for Incorporated Professionals

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For incorporated professionals, making sure your practice is financially protected can be overwhelming. Incorporated professionals face a unique set of challenges when it comes to managing risk. Insurance can play an important role when it comes to reducing the financial impact on your practice in the case of uncontrollable events such as disability, or critical illness. This infographic and article address the importance of corporate insurance.

The 4 areas of insurance a incorporated professional should take care of are: 

  • Health 

  • Disability 

  • Critical Illness 

  • Life

Health: We are fortunate in Canada, where the healthcare system pays for basic healthcare services for Canadian citizens and permanent residents. However, not everything healthcare related is covered, in reality, 30% of our health costs* are paid for out of pocket or through private insurance such as prescription medication, dental, prescription glasses, physiotherapy, etc.

For incorporated professionals, offering employee health benefits make smart business sense because health benefits can form part of a compensation package and can help retain key employees and attract new talent.

For incorporated professionals that are looking to provide alternative health plans in a cost effective manner, you may want to consider a health spending account.

Disability: Most people spend money on protecting their home and car, but many overlook protecting their greatest asset: their ability to earn income. Unfortunately one in three people on average will be disabled for 90 days or more at least once before the age of 65.

Consider the financial impact this would have on your practice if you or a key employee were to suffer from an injury or illness. Disability insurance can provide a monthly income to help keep your practice running.

Business overhead expense insurance can provide monthly reimbursement of expenses during total disability such as rent for commercial space, utilities, employee salaries and benefits, equipment leasing costs, accounting fees, insurance premiums for property and liability, etc.

Key person disability insurance can be used to provide monthly funds for you or key employee while they’re disabled and protect the business from lost revenue while your business finds and trains an appropriate replacement.

Critical Illness: For a lot of us, the idea of experiencing a critical illness such as a heart attack, stroke or cancer can seem unlikely, but almost 3 in 4 (73%) working Canadians know someone who experience a serious illness. Sadly, this can have serious consequences on you, your family and business, with Critical Illness insurance, it provides a lump sum payment so you can focus on your recovery.

Key person critical illness insurance can be used to provide funds to the practice so it can supplement income during time away, cover debt repayment, salary for key employees or fixed overhead expenses.

Buy sell critical illness insurance can provide you with a lump sum payment if your business partner or shareholder were to suffer from a critical illness. These funds can be used to purchase the shares of the partner, fund a buy sell agreement and reassure creditors and suppliers.

Life: For an incorporated professional, not only do your employees depend on you for financial support but your loved ones do too. Life insurance is important because it can protect your practice and also be another form of investment for excess funds.

Key person life insurance can be used to provide a lump sum payment to the practice on death of the insured so it can keep the business going until you an appropriate replacement is found. It can also be used to retain loyal employees by supplying a retirement fund inside the insurance policy.

Loan coverage life insurance can help cover off any outstanding business loans and debts.

Reduce taxes & diversify your portfolio, often life insurance is viewed only as protection, however with permanent life insurance, there is an option to deposit excess funds not needed for operations to provide for tax-free growth (within government limits) to diversify your portfolio and reduce taxes on passive investments.  

Talk to us to make sure you and your practice are protected.

Contact Us

Insurance Planning for Business Owners

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For business owners, making sure your business is financially protected can be overwhelming. Business owners face a unique set of challenges when it comes to managing risk. Insurance can play an important role when it comes to reducing the financial impact on your business in the case of uncontrollable events such as disability, critical illness or loss of a key shareholder or employee.

This infographic addresses the importance of corporate insurance.

The 4 areas of  insurance a business owner should take care of are:

  • Health

  • Disability

  • Critical Illness

  • Life

Health: We are fortunate in Canada, where the healthcare system pays for basic healthcare services for Canadian citizens and permanent residents. However, not everything healthcare related is covered, in reality, 30% of our health costs* are paid for out of pocket or through private insurance such as prescription medication, dental, prescription glasses, physiotherapy, etc.

For business owners, offering employee health benefits make smart business sense because health benefits can form part of a compensation package and can help retain key employees and attract new talent.

For business owners that are looking to provide alternative health plans in a cost effective manner, you may want to consider a health spending account.

Disability: Most people spend money on protecting their home and car, but many overlook protecting their greatest asset: their ability to earn income. Unfortunately one in three people on average will be disabled for 90 days or more at least once before the age of 65.

Consider the financial impact this would have on your business if you, a key employee or shareholder were to suffer from an injury or illness. Disability insurance can provide a monthly income to help keep your business running.

Business overhead expense insurance can provide monthly reimbursement of expenses during total disability such as rent for commercial space, utilities, employee salaries and benefits, equipment leasing costs, accounting fees, insurance premiums for property and liability, etc.

Key person disability insurance can be used to provide monthly funds for the key employee while they’re disabled and protect the business from lost revenue while your business finds and trains an appropriate replacement.

Buy sell disability insurance can provide you with a lump sum payment if your business partner were to become totally disabled. These funds can be used to purchase the shares of the disabled partner, fund a buy sell agreement and reassure creditors and suppliers.

Critical Illness: For a lot of us, the idea of experiencing a critical illness such as a heart attack, stroke or cancer can seem unlikely, but almost 3 in 4 (73%) working Canadians know someone who experience a serious illness. Sadly, this can have serious consequences on you, your family and business, with Critical Illness insurance, it provides a lump sum payment so you can focus on your recovery.

Key person critical illness insurance can be used to provide funds to the company so it can supplement income during time away, cover debt repayment, salary for key employees or fixed overhead expenses.

Buy sell critical illness insurance can provide you with a lump sum payment if your business partner or shareholder were to suffer from a critical illness. These funds can be used to purchase the shares of the partner, fund a buy sell agreement and reassure creditors and suppliers.

Life: For a business owner, not only do your employees depend on you for financial support but your loved ones do too. Life insurance is important because it can protect your business and also be another form of investment for excess company funds.

Key person life insurance can be used to provide a lump sum payment to the company on death of the insured so it can keep the business going until you an appropriate replacement is found. It can also be used to retain loyal employees by supplying a retirement fund inside the insurance policy.

Buy sell life insurance can provide you with a lump sum payment if your business partner or shareholder were to pass away. These funds can be used to purchase the shares of the deceased partner, fund a buy sell agreement and reassure creditors and suppliers.

Loan coverage life insurance can help cover off any outstanding business loans and debts.

Reduce taxes & diversify your portfolio, often life insurance is viewed only as protection, however with permanent life insurance, there is an option to deposit excess company funds not needed for operations to provide for tax-free growth (within government limits)  to diversify your portfolio and reduce taxes on passive investments.

Talk to us about helping making sure you and your business are protected.

Contact Us

Financial Planning for Incorporated Professionals

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Financial planning for incorporated professionals is often two-sided- planning for the practice and personal financial planning. A few things to keep in mind for professionals are:

  • Professionals are typically in the highest income tax bracket, therefore incorporating their practice can help manage and defer taxes at a lower corporate tax rate.

  • By incorporating- professionals can have access to dividends from their corporation, shareholder loans, corporately held life insurance and since money can be left inside a corporation- this money can be used in years where there are life changes such as pregnancy, buying a home or retirement.

  • Professionals should also ensure that they have access to health benefits.

  • Debt for a professional is not unusual, given the costs of education and equipment, therefore working with an advisor and accountant can help an incorporated professional find a way to balance their cash flow.

Why do you need a Financial Plan?

  • Worry less about money and gain control.

  • Organize your finances.

  • Prioritize your goals.

  • Focus on the big picture.

  • Save money to reach your goals.

For an incorporated professional, personal and practice finances are connected. Therefore both sides should be addressed: Personal and your Practice.

What does a Financial Plan for an Incorporated Professional include?

There are 2 main sides your practice’s financial plan should address: Growth and Preservation

Growth:

  • Cash Management- Managing Cash & Debt

  • Tax Planning- Finding tax efficiencies

  • Health Benefits

Preservation: 

  • Investment- either back into the business or outside of the business

  • Insurance Planning/Risk Management

  • Retirement Planning

What does a Personal Financial Plan include?

There are 2 main sides your financial plan should address: Accumulation and Protection

Accumulation:

  • Cash Management – Savings and Debt

  • Tax Planning

  • Investments

Protection:

  • Insurance Planning

  • Health Insurance

  • Estate Planning

What’s the Financial Planning Process?

  • Establish and define the financial planner-client relationship.

  • Gather information about current financial situation and goals including lifestyle goals.

  • Analyze and evaluate current financial status.

  • Develop and present strategies and solutions to achieve goals.

  • Implement recommendations.

  • Monitor and review recommendations. Adjust if necessary.

Next steps…

  • Talk to us about helping you get your finances in order so you can achieve your lifestyle and financial goals.

  • Feel confident in knowing you have a plan to get to your goals.

Contact Us

Insurance Planning for Young Families

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For young families, making sure your family is financially protected can be overwhelming, especially since there’s so much information floating online. This infographic addresses the importance of insurance- personal insurance.

The 4 areas of personal insurance a young family should take care of are:

  • Health

  • Disability

  • Critical Illness

  • Life

Health: We are so fortunate to live in Canada, where the healthcare system pays for basic healthcare services for Canadian citizens and permanent residents. However, not everything healthcare related is covered, in reality, 30% of our health costs* are paid for out of pocket or through private insurance such as prescription medication, dental, prescription glasses, physiotherapy, etc.. Moreover, if you travel outside of Canada, medical emergencies can be extremely expensive.

Disability: Most people spend money on protecting their home and car, but many overlook protecting their greatest asset: their ability to earn income. Unfortunately one in three people on average will be disabled for 90 days or more at least once before age 65. Disability insurance can provide you with a portion of your income if you were to become disabled and unable to earn an income.

Critical Illness: For a lot of us, the idea of experiencing a critical illness such as a heart attack, stroke or cancer can seem unlikely, but almost 3 in 4 (73%) working Canadians know someone who experience a serious illness. Sadly, this can have serious consequences on you and your family, with Critical Illness insurance, it provides a lump sum payment so you can focus on your recovery.

Life: For young families, if your loved ones depend on you for financial support, then life insurance is absolutely necessary, because it replaces your income, pay off your debts and provides peace of mind.

Talk to us about helping making sure you and your family are protected.

Contact Us

BC Budget Highlights 2018

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BC Finance Minister Carole James delivered the province’s 2018 budget update on February 20, 2018. The budget anticipates a surplus of $219 million for the current year, $281 million for 2019 and $284 million in 2020.

Corporate and personal tax rates remain unchanged.

The biggest changes are:

  • Elimination of Medical Services Plan (MSP Premiums) effective January 1, 2020
  • Addition of the Employer Health Tax (EHT)
  • Provincial Property Taxes
  • Childcare

The Employer Health Tax and Medical Services Plan premiums:

Effective January 1, 2020, the Medical Services Premium (MSP) will be eliminated. In last year’s budget update, MSP was reduced by 50% effective January 1, 2018. Starting in 2019, the budget introduces the Employer Health Tax (EHT). The EHT is to help fund the elimination of the MSP premiums.

The Employer Health Tax will be calculated as a percentage of payroll:

Provincial Property Transfer Taxes

Effective February 21, 2018, the following will occur:

  • The provincial property transfer taxes (PTT) will increase to 5% (from 3%) on residential property values above $3 million.
  • The PPT applies to foreign purchasers of residential properties in BC will increase to 20% (from 15%) and the tax will extend to include the Fraser Valley, Capital, Nanaimo and Central Okanagan Regional Districts.
  • There is a new speculation tax on residential property in BC. This tax is targeted at foreign and domestic homeowners who don’t pay income tax in BC. Starting in 2018, it’s a rate of $5/$1,000 of assessed value, in 2019, this will increase to $20/$1,000.

Childcare

There will be a new affordable child care benefit that will reduce child care costs by up to $1,250 per month per child by 2020. The new benefit will apply in September 2018. Families with pre-tax incomes of $45,000 or less will receive the full benefit, (up to the cost of care) while those who make up to $111,000 will receive a reduced amount, scaling based on income. The government will be releasing an online benefit calculator to help parents budget.

The budget will provide up to $350/month directly to licensed child care providers to reduce fees. They will be the following:

  • Up to $350/month for group infant/toddler care
  • Up to $200/month for family infant/toddler care
  • Up to $100/month for group care for children aged 3-5
  • Up to $60/month for family care for children aged 3-5

To learn how these changes will affect you, please don’t hesitate to contact us.