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Top 10 Reasons Why Group Health Insurance Matters
Group health insurance is crucial for employees as it aids recruitment, productivity, and financial security. These plans offer comprehensive coverage at a lower cost and benefits like tax exemptions, affordable healthcare, critical illness plans, etc.
Imagine stepping into a workplace that isn’t just about the job—it’s about looking out for you, too. That’s where group health insurance comes in. Think of an employee benefits plan as a safety net that protects you, and shows you that you are valued.
Group health insurance is offered by employers to their employees and includes medical services like prescription drugs, preventive care, dental, and vision benefits. Some employers also choose to offer mental health, maternity care, and additional wellness benefits through a group health plan.
If you’re wondering why group health insurance is a good idea, this article explains its benefits and why offering group health is important.
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Employers are always looking for ways to boost productivity and ensure their employees are well taken care of. Offering group health insurance helps achieve these goals.
By offering comprehensive health coverage, you’re showing your team that you value their health and well-being, which can go a long way in building loyalty and job satisfaction. So, when it comes to employee benefits, group health insurance policy is a win-win.
Here’s why group health insurance is important for you as an employer:
How does group health insurance benefit employees?
Whether you’re looking for a job or already clocking in, staying healthy is a top priority. And one solid way to ensure that is through group medical insurance in Canada. Wondering how such a plan can benefit you as an employee? Here’s how:
Are group benefits taxable in Canada?
We won’t make this confusing for you (we promise). Whether or not a group benefit is taxable in Canada depends on its type and funding source. Broadly, employer-paid premiums for group life insurance, critical illness insurance, and accident insurance are taxable benefits. So, as an employee, you have to pay income tax on the premium amount.
However, exceptions exist. Short-term and long-term disability insurance aren’t taxable benefits, even if the employer covers the cost. Similarly, employer-paid premiums for health and dental insurance aren’t taxable.
Here are the common group benefits and their taxability in Canada:
| Type of Insurance | Taxable Benefit for Employer-Paid Premiums |
| Group Life Insurance | Yes |
| Critical Illness Insurance | Yes |
| Accident Insurance | Yes |
| Short-Term Disability | No |
| Long-Term Disability | No |
| Health Insurance | No |
| Dental Insurance | No |
What are the non-taxable group benefits in Canada?
As we mentioned earlier, some group benefits in Canada aren’t taxable. Here are the ones you can claim tax exemptions on:
Why aren't these benefits taxable?
Why? The rationale behind this exemption is to support employees’ health and financial well-being without imposing additional tax burdens. By excluding these benefits from taxation, the government aims at employees fully accessing the insurance coverage provided by their employers.
Which are the best group insurance providers in Canada?
To decide the best group health insurance provider in Canada, different factors like coverage options, customer service, pricing, and reputation must be considered.
Some top providers in our experts’ opinion include:
However, the best provider for a business will depend on its specific needs, budget, and preferences.
Frequently-asked questions
What is group coverage health insurance?
Group coverage health insurance is a type of insurance plan that provides coverage to a group of people, typically employees of a company or members of an organization. It offers benefits such as medical, dental, vision, and prescription drug coverage.
Will I be taxed on a group health policy?
In Canada, group health insurance benefits provided by employers are generally not considered taxable income for employees. However, certain exceptions may apply, so it’s essential to consult with a tax professional for specific guidance.
What factors can affect the cost of a group health policy?
The greater the number of features included in the insurance plans, the higher the premium you’ll need to pay. If the group healthcare plan is tailored and includes additional benefits like daycare treatment and outpatient expenses, the premium will increase accordingly.
- Group health insurance helps attract and retain top talent in today's competitive job market
- By providing access to affordable healthcare and comprehensive coverage, group health insurance offers employees financial security in times of need
- Preventive care and peace of mind are essential components of group health insurance, promoting overall well-being and job satisfaction
