Provides term financial compensation in the event of the plan member’s death. The plan sponsor may choose either a flat benefit amount or a percentage of one’s salary. Rates are revised annually and are based on the group’s demographics.
GROUP ACCIDENTAL DEATH & DISMEMBERMENT (AD&D)
Usually sold in conjunction with Group Life insurance, AD&D provides a lump sum payment in the event of accidental death, and recurring payments in the event of injuries or loss of use of certain body parts as a results of an accident. The amount of coverage is usually equal to the amount of life insurance selected by the plan sponsor.
GROUP DEPENDENT LIFE INSURANCE
This benefit provides the plan member financial compensation in an event of the death of their spouse and/or dependent children.
GROUP SHORT-TERM DISABILITY (STD)
Also referred to as “weekly indemnity” or “weekly income” (WI), STF is designed to compensate a plan member for income lost as a result of a short-term absence from work due to accident or illness. The amount of coverage is usually a percentage of earnings.
GROUP LONG-TERM DISABILITY (LTD)
Also referred to as “monthly indemnity”, LTD provides extended income replacement to plan members who are disabled and unable to work due to prolonged injury or illness. The amount of coverage is calculated based either on a flat percentage of earnings, or on a graded percentage of earnings.
GROUP EXTENDED HEALTH CARE (EHC)
EHC plans are generally designed to supplement existing provincial health care plans Extended Heath Care benefits can include a broad array of benefits.
GROUP DENTAL CARE
Comprehensive dental services and supplies for plan members and their eligible dependents, generally grouped into basic (routine) care, major restorative, and orthodontic services. The amount of coverage is defined as a yearly maximum.
OPTIONAL GROUP LIFE INSURANCE
Employees can supplement the life insurance coverage provided by their group benefit plan by applying for optional life coverage. This is typically available to only employees and their spouses. Medical evidence is required and coverage typically ceases at at retirement or age 65, whichever comes first. Premiums are paid by the employee. Rates are usually based on age bands (e.g. 40-44, 45-49, etc.), gender, and smoking status.
This bridges the gap between Llife and Long Term Disability insurance with a one-time lump sum payment to an insured employee who has been diagnosed with and survived a life threatening illness.
The benefit can be used to pay for ongoing medical expenses, experimental treatments (not covered in provincial plans), lifestyle/mobility changes resulting from the illness, or even a vacation that would otherwise not be affordable.
HEALTH CARE SPENDING ACCOUNTS (HCSA OR HSA)
An individual employee account that reimburses the employee for health-related expenses not covered by other sources.
An HCSA can be introduced on a stand-alone basis, supplementary to an existing plan to add flexibility, or as another option within a broader flexible benefits program. Employers should introduce HCSAs for the following reasons:
To allow the employer to offer a new type of health benefit to employees without having to be locked into providing a benefit that may become expensive.
To provide flexibility within a group benefits program to help meet the needs of a diverse population.
To allow employees to claim expenses that are otherwise not reimbursable through their base plan.
To allow coverage for predictable expenses like Vision Care to be eliminated from benefits to reduce potential for adverse selection.
EMPLOYEE ASSISTANCE PROGRAM (EAP)
EAPs offer assistance and support to plan members and are intended to reduce the number of disability claims. They focus on two key elements:
Organizational wellness: Managing business functions and employee well-being in a manner that allows the business to be more resistant to environmental pressure.
Employee wellness: Managing both psychological and physical issues in response to environmental stress including the employee’s work environment.
The EAP offers confidential and professional consulting services to help employees and their families address a wide range of personal and workplace issues.
GROUP PENSION PLAN
A plan, fund, or program maintained by the employer, employee organization, or both. Such a plan provides retirement income to employees or results in a deferral of income by employees for periods extending to or beyond the termination of covered employment.
OPTIONAL GROUP ACCIDENTAL DEATH & DISMEMBERMENT (AD&D)
Optional AD&D coverage typically provides a benefit equal to the employee’s optional life amount and can be available to the employee and their covered dependents.