Group insurance by employee size in Canada: An extensive guide

Whether you are a solo entrepreneur, small business owner, or managing a large company in Canada, having group insurance is a crucial part of an employee benefits package. A group insurance plan offers comprehensive healthcare options and helps you attract and retain employees. 

However, understanding group insurance can be confusing, as the coverage, costs, and plans can change depending on the size of the business. 

In this guide, we’ll help you understand group insurance options based on employee count, from solo businesses to large enterprises with over 50 employees.

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Group insurance for solo and micro-businesses (less than 2 employees)

Finding suitable group insurance for 1 employee in Canada can be quite challenging. Most employee benefits plans require a minimum of at least 3 employees, making it difficult for micro-businesses and solo entrepreneurs to access standard group benefits.

Some challenges that small businesses can face include higher risk and high premiums, limited bargaining power, limited plan options, challenges of plan customization, and the burden of compliance.

Alternative health insurance solutions for micro-businesses

Despite the above-mentioned challenges, micro-businesses or solo-entrepreneurs still have several options, like Health spending accounts (HSAs),  Individual health and dental plans, Wellness spending accounts (WSA), to get health benefits for themselves or their employees. 

Health Spending Accounts (HSA)

Health Spending Accounts are a great alternative to getting health benefits for self-employed or micro-businesses. These accounts allow you to set aside an amount to spend on eligible health and dental expenses.

Health Spending Accounts also offer tax benefits to Canadian employees, as these expenses are tax-free. These accounts can be set up for solo-entrepreneurs as part of a group insurance plan or as a standalone plan

Individual health and dental plans

Micro-businesses or self-employed individuals can also get individual health and dental insurance plans. These plans offer you financial protection to manage unforeseen health expenses without minimum employee eligibility requirements.

You can also bundle these plans with benefits like vision care, prescription drugs, or emergency medical travel coverage

Wellness Spending Accounts (WSA)

WSAs are employer-funded accounts designed to support your personal well-being and health-related expenses. You can allocate funds in this account and use them when needed. Micro-businesses with fewer than 3 employees can use this option to offer health coverage to their employees.

Tax implications and advantages for solo-entrepreneurs

As a solo-entrepreneur, you must also understand the tax implications and advantages of group insurance options. Benefits from Health Spending Accounts and Wellness Spending Accounts are mostly tax-free, thus reducing your tax liability. 

You can deduct other health plans as business expenses to lower your overall taxable income.

When to consider transitioning to a group insurance plan?

Till the time you are solo, having the above-mentioned healthcare coverage is a great option. However, as soon as you grow and hire your second or third employee, you become eligible for a group health insurance plan for your business. A group benefit plan offers broader coverage at a lower premium as compared to individual health plans. 

Find out more about the benefits of group health insurance in Canada
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Group insurance for small businesses (2–10 employees)

Businesses with 2-10 employees can offer valuable health and wellness benefits to their teams. Most insurers require at least 2 or 3 employees to offer group insurance for small businesses in Canada. One out of these can be the business owner, but at least 1 must be an unrelated, full-time employee. 

Coverage options under group benefits for 2-10 employees

Group insurance for small businesses in Canada typically offers health and dental coverage, life and accidental death coverage, disability insurance, and HSAs.

  • Health and dental coverage: Health and dental plans offer coverage for prescription medicines, dental procedures, paramedical services, and vision care
  • Life and accidental death cover: Group medical insurance plans also provide life insurance and accidental death insurance for employees and their families. These plans provide additional coverage if the employee dies or sustains injury from an accident 
  • Disability insurance: Most insurers also offer both short-term and long-term disability insurance under an employee benefits package. This type of group health insurance plan replaces income for employees who are unable to work due to any illness or injury
  • Health Care Spending Accounts: HSAs are another great addition to employee benefits packages. These accounts allow employees to set a fixed amount per employee, which they can spend on health-related expenses

Cost considerations for small business group insurance

Cost considerations play a huge role in group benefits for 2-10 employees. A detailed budget consideration is crucial before choosing group health insurance for small businesses. The cost will depend on factors like employee demographics, insurer claims history, and plan type.

Typical costs for group benefits for small businesses vary between:

  • $80-$200/month/employee for a very basic plan
  • $100-$250/month/employee for a more enhanced plan
  • $150-$350/month/employee for comprehensive coverage

These are indicative costs only, and they will change based on the coverage and plan details.

Ensure that you do a thorough assessment beforehand. To help you with this, our licensed advisors at PolicyAdvisor will help compare group health plans from 30+ insurers and help you choose a plan that suits your cost requirements.

How can small businesses customize group insurance plans?

Small businesses can control costs while providing broader health coverage by customizing their group health plans. This not only satisfies the employees but also offers tax savings for the business. 

Small businesses can customize their group medical insurance benefits by choosing only the benefits their employees need, such as dental, vision, or mental health support, and avoiding any unnecessary expenses.

Know how to customize small business group insurance plans
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Group insurance for growing businesses (10-30 employees)

As your business grows to 10-30 employees, you can start giving a more comprehensive employee benefit package to your team. 

With mid-size group health plans, you can offer vision care, paramedical services, critical illness coverage, and employee assistance programs to your employees. 

  • Health and wellness group benefits: Growing businesses can offer enhanced benefits under their group health insurance plans. These include vision care, paramedical services, employee wellness benefits, prescription drugs, disability insurance, and comprehensive dental plans
  • Critical illness coverage: Under group insurance for 10-30 employees, businesses can also add specialized coverage like critical illness insurance. These plans provide a one-time payment to employees upon diagnosis of covered critical illness
  • Employee Assistance Programs: EAPs provide counselling and support services that help employees manage personal and work–related issues. Growing businesses can include this program under their employee benefit packages to support their team’s mental health and well-being 

How to customize group employee benefits for a growing business?

With group insurance for 10-30 employees, you get more flexibility to customize your employee benefits plan. You can add optional benefits and implement cost-sharing options between the employer and employees. 

Optional benefits like tiered coverage, accidental death and dismemberment insurance, short-term disability, long-term disability, ESAs, and HSAs can help customize employee benefits plans. 

Cost management and employee retention strategies for growing businesses

For businesses with 10-30 employees, managing costs becomes necessary. Apart from strategic cost management, growing businesses should also adopt strategies like RRSP, TFSA, DPSP, and digital tools to retain employees.

  • Balancing cost control with competitive benefits: Cost management for group insurance for growing businesses can be done by choosing flexible coverage options, implementing co-payment and deductible options, and including health and wellness accounts
  • Integration of savings plans: Integrating a group retirement savings option can also be an attractive addition to an employee benefits plan. These include:
Find out how small businesses can customize their group plans

How to choose the right health insurance plan for your restaurant?

Selecting the best health insurance for restaurant employees means balancing cost, coverage, and flexibility. With so many options on the market, it’s important to evaluate what fits your team’s needs and your budget. 

Key factors include your team size and eligibility requirements, the types of coverage offered, flexibility for part-time staff, and strategies for cost control and tax advantages.

  • Team size and eligibility requirements: Some plans have minimum employee thresholds, while others require full-time status. Consider how many staff will qualify and whether your team is mostly full-time, part-time, or seasonal
  • Coverage types: Look for plans that include core benefits your employees need most, such as:
    • Medical services (prescriptions, hospital care, paramedical)
    • Dental care (preventive, major, orthodontics)
    • Vision (eye exams, glasses, contact lenses)
    • Mental health support (therapy, counselling)
  • Flexibility for part-time and full-time staff:  Employers can offer tiered or voluntary plans to allow more employees to participate, especially in an industry where part-time work is common. Employers can also offer Health Spending Accounts (HSAs) or wellness stipends as flexible add-ons
  • Cost control and tax advantages: Understand your contribution options and how they impact your taxes. You can typically deduct employer-paid health benefits from your taxes, and options like HSAs can help you manage costs while still offering meaningful support
Read more about how small businesses can customize their employee benefits plans
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Group insurance for mid-sized businesses (30-50 employees)

Insurers offer mid-sized businesses with 30-50 employees a significantly larger number of employee benefit options. From negotiating premiums, greater plan flexibility, and customization, mid-sized companies can offer comprehensive group benefits to their employees. 

Features of group insurance for 30-50 employees

Mid-size business group benefits offer various features such as broader coverage options, employee wellness and holistic programs, flexibility and customization, and digital administration tools. 

  • Enhanced plan flexibility: With group insurance for 30-50 employees, businesses can get more tailored plans by choosing additional benefits and coverage that fit their team’s needs 
  • Broader coverage options: Mid-sized businesses can get comprehensive employee health plans for their employees wth prescription drugs, paramedical services, extended dental, vision care, disability insurance (short and long term), critical illness cover, employee assistance programs, and life and accident death insurance
  • Wellness and holistic programs:  Businesses with more than 30 employees can also offer integrated employee wellness and holistic programs focused on mental health, preventive health care, and overall wellness of employees
  • Digital administration tools: Mid-size businesses can take advantage of online platforms and mobile apps to simplify plan enrollment, claims processing, and the support process for their team

Cost considerations for mid-sized business group benefits

Average premium costs, employee demographics, claims history, group size, cost-sharing strategies, customization options, and tax benefits are some of the key factors that impact the cost of employee benefits plans for mid-sized businesses. 

Understanding these can help you get a comprehensive employee health plan with budget control. 

Factors affecting cost Details
Average premium costs The average premium cost is $250–$350 per employee per month for group health insurance for 1-50 employees in Canada
Group size Large group of employees pays less premium per employee due to risk sharing
Employee demographics Gender, age, and health concerns of employees. Older/higher-risk groups may have higher costs
Claims history High past claims can increase premiums, while good claims experience can help keep costs stable
Plan selection Plans with more comprehensive coverage (dental, vision, disability) cost more than basic ones
Customization options More customization options such as tier plans, optional benefits  e.g., critical illness) available
Cost-sharing strategies Employers may also share costs (for instance, 80:20 or 70:30) with employees to stay within the company’s budget
Tax Advantages Group insurance premiums in Canada are tax-deductible for employers

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Group insurance for large businesses & enterprises (50+ employees)

Businesses with 50+ employees must offer comprehensive group insurance to their employees. When it comes to enterprise group benefits in Canada, employers get stronger coverage, better premium, and greater flexibility options. With this size, businesses can negotiate with insurance providers, get advanced features, and offer employee benefits. 

Key features of group insurance for large businesses

Group insurance for 50+ employees in Canada offers a broad range of features. These include plan customization, self-insurance models, advanced wellness programs, retirement and savings plans, data-driven plan management, and compliance considerations.   

  • Fully customizable plans: Large companies can completely tailor group health insurance plans to meet the needs of employees. You can opt for customization options like multi-tiered plans, the addition of life insurance, disability insurance, visual and dental care, and virtual services as well
  • Self-insurance and ASO models: Some other alternative models that large businesses can explore include:
    • Administrative services only plans allow employers to self-fund group insurance plan while outsourcing the administrative tasks to a third party, preferably the insurance provider
    • Businesses with 50+ employees can also choose to self-insure certain benefits of their employee benefits package. These can be health and dental insurance
  • Advanced wellness programs: Enterprise group benefits can also include advanced wellness and mental health programs to support their employees’ overall health
  • Data-driven plan management: Businesses with more than 50 employees can use data tools to manage their group insurance plan more efficiently. Data metrics like claims history, predictions, and plan comparison can help you improve plan benefits over time
  • Legal and compliance considerations: For large enterprises, compliance becomes a bit more complex. From meeting group insurance rules, protecting employees’ privacy, understanding tax rules, or any other legal formality, considering all these aspects becomes crucial. Getting help from our licensed insurance advisors at PolicyAdvisor can help you comply with all the rules and get an affordable group benefits plan.

Cost considerations for large businesses & enterprises

Large Canadian businesses (50+ employees) can reduce group insurance costs through better plan selection, cost-sharing and size-based negotiations.

  • Negotiate better deals: Large companies can use their size to get better rates and customize their plans to fit their employees’ needs.
  • Plan level affects price: Costs go up as you add more coverage. Typical costs for large businesses’ group insurance plans are:
    • Basic plans: $80–$200 per employee per month
    • Standard plans: $100–$150 per employee per month
    • Enhanced plans: $150–$350 per employee per month
  • Cost-sharing with employees: To stay competitive, cover more than the legal minimum 25% of group insurance premiums and share costs with employees to maintain affordability and attract top talent
  • Administration gets cheaper with size: Larger companies pay less to manage their plans per employee, but more complex plans may need extra management

How can you choose the right group insurance plan based on employee size?

When finding the best group insurance plans for your business size, consider some key factors. These include cost vs coverage balance, employee needs assessment, flexibility options, digital tools, ease of administration, and working with advisors. 

  • Balance cost and coverage: Finding a balance between the cost and coverage is necessary while looking for the right group insurance for business. Carefully consider your budget constraints, financial objectives, coverage needs, and cost-sharing options before investing in a group plan
  • Assess your employees’ needs: Assess the needs of your employees via surveys, discussions, and feedback. Consider their age, family status, or any health concern they require coverage for
  • Look for flexible plans: As your business grows, you may need to customize your employee benefits plan. Therefore, pick a group insurance plan that offers flexibility as your business grows
  • Opt for digital tools: Offering easy-to-use digital tools like online portals and mobile apps to employees makes it easier to manage plans and costs. As per the Benefits Canada Healthcare Survey, 2023, 41% of large businesses have adopted virtual care benefits to control costs
  • Consult a licensed advisor: To get the best group benefits plan for your business, be it of any size, consider working with experienced insurance advisors. Our licensed advisors at PolicyAdvisor can help you find the right group plan while controlling your business costs
Looking for the best group insurance plan?

Give us a call at 1-888-601-9980 or book some time with our licensed experts.

Frequently asked questions

Can a business with only 1 employee get group insurance?

While insurers typically require a minimum of 3 employees to qualify for a group insurance plan, businesses with as few as one employee also have a few health insurance options. These include health spending accounts and individual health insurance plans. 

What is the minimum number of employees for group insurance in Canada?

The minimum number of employees for group health insurance is at least 3 employees to qualify as a valid group. One employee can be the business owner, while the other needs to be a full-time working employee and not an owner/employer of the business.

How do premiums change as my business grows?

There are several factors that impact the premium of your business as it grows. These include:

  • Larger groups spread risk across more members (also known as pooling), thus making premiums more stable per employee
  • The growing business group insurance premium is based on their claims history
  • Businesses with more than 30 employees have higher negotiating power
  • With features like self-insurance and ASO models, large businesses can manage their costs more efficiently

What are pooled vs. experience-rated group insurance plans?

Pooled group insurance plans set premium rates by combining the claims of multiple employers. This pooling supports businesses of small size from a huge jump in premiums if they have lots of claims. On the other hand, experience-rated group health insurance plans set premium rates mostly on your business’s claims history. This approach is usually done for large businesses. 

How do tax benefits work for group insurance?

Tax benefits for group insurance work in the following ways:

  • Employer contributions to group insurance plans are considered tax-deductible business expenses, thus reducing their tax liability
  • The benefits employees receive under a group health insurance are also non-taxable
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Pension vs. Group RRSP: Which is better for retirement savings in Canada?

Retirement planning is one of the most important financial steps Canadians will face. According to Statistics Canada, the number of Canadians enrolled in a registered pension plan grew by 215,800 in 2022, reaching over 6.9 million active members. Whether you’re early in your career or nearing retirement, choosing the right savings vehicle can shape your financial future.

Two of the most common workplace retirement options are pension plans and Group Registered Retirement Savings Plans (Group RRSPs). In this article, we’ll break down how each plan works, its benefits, and which might suit your retirement goals best.

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Understanding Pension plans and Group RRSPs

If your employer offers both a pension plan and a Group RRSP, it’s important to understand how each works before deciding where to contribute. While both provide tax advantages and may include employer contributions, they differ significantly in structure, flexibility, and long-term benefits.

What is a pension plan?

A Registered Pension Plan (RPP) is an employer-sponsored retirement savings program designed to provide long-term income after retirement. In Canada, RPPs are formal plans regulated by federal or provincial pension legislation, ensuring strong oversight and protection for members.

There are two main types of RPPs in Canada:

  • Defined Benefit (DB) Pension Plan: This offers a guaranteed retirement income plan based on salary and years of service. The employer typically handles investments and assumes the risk
  • Defined Contribution (DC) Pension Plan: In this plan, contributions from the employers and employees are fixed, but the eventual retirement income depends on investment returns

Benefits and limitations of pension plans

Benefit Limitation
Predictable retirement income Limited portability when changing jobs
Significant employer contributions Risk tied to employer’s financial health
No investment management required No control over investment decisions
Tax-deferred growth and savings Inflexible withdrawal options
Disability and survivor benefits May reduce room for other retirement savings

What is a Group RRSP?

A Group RRSP is a retirement savings plan sponsored by an employer, but structured like a personal RRSP. Employees contribute through automatic payroll deductions, often with employer matching contributions to boost the retirement savings fund.

Benefits and limitations of pension plans

Benefit Limitation
Predictable retirement income Limited portability when changing jobs
Significant employer contributions Risk tied to employer’s financial health
No investment management required No control over investment decisions
Tax-deferred growth and savings Inflexible withdrawal options
Disability and survivor benefits May reduce room for other retirement savings

How do employer matching contributions impact the overall savings in a group RRSP?

Employer matching contributions significantly boost the total retirement savings within a Group RRSP. These contributions are added on top of the employee’s regular payroll deductions, essentially increasing the amount saved without additional effort from the employee. 

Over time, this compounding effect, especially when invested wisely, can result in a substantially larger retirement fund, making employer matching one of the most valuable features of a Group RRSP.

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Key differences between pension plans and Group RRSPs

While both Group RRSPS and pension plans help Canadians build their retirement savings, the way they operate varies widely.

From contribution structures to tax treatment and investment control, understanding the differences between pension plans and group RRSPs will help you determine which plan better aligns with your financial goals and lifestyle.  

Pensions vs Group RRSPs

Feature Pension plans Group RRSPs
Contribution type Employer-driven (mandatory for DB/DC plans) Employee-driven (voluntary, with possible employer matching)
Employer contributions Often higher and guaranteed (especially in DB plans) Varies by employer; not mandatory
Retirement income Predictable (DB plans offer guaranteed income) Depends on investment performance
Investment control Managed by employer/plan administrator Employee chooses from available investment options
Tax advantages Tax-deferred growth; taxed upon withdrawal Immediate tax deductions through payroll; taxed upon withdrawal
Portability Limited (especially DB plans; may involve locking in funds) Fully portable between employers
Flexibility Low flexibility because payouts usually begin at retirement High flexibility as funds can be accessed early (with tax implications)
Risk exposure Employer bears investment risk (DB); employee bears the risk in DC Employee bears investment risk
Cost to implement

(As employer) 

Higher – Often include legal fees and administration fees Low – Easier to implement through group plans administrators 

Learn more about different savings accounts in Canada
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How can employers improve Group RRSP participation?

Employers can improve Group RRSP participation by implementing a well-designed plan combined with ongoing education and monitoring.

Key strategies include automatic enrollment to increase initial sign-ups, employer matching to incentivize contributions, providing digital tools to educate and motivate employees, and regularly reviewing participation data to fine-tune the program. 

Here’s what employers should do:

  • Automatic enrollment: Automatically enroll employees with an opt-out option
  • Employer matching: Offer matching contributions to encourage saving
  • Education tools: Provide simple tools that show how savings grow over time
  • Regular reviews: Monitor participation and improve the plan as needed

A well-executed Group RRSP strengthens your benefits offering and helps employees take confident steps toward a financially secure retirement.

Which are the top Group RRSP companies in Canada?

Canada’s Group RRSP market is dominated by several leading financial institutions such as Manulife, Desjardins, Sun Life, Canada Life, RBC, and BMO. Each of these insurers offer unique features to meet employees’ retirement savings needs.

  • Manulife Group RRSP: A top choice for employers seeking a digitally advanced solution, Manulife’s plans benefit from the firm’s investment management strength and user-friendly digital platforms
  • Desjardins Group RRSP: Known for strong client support and deep market penetration in Quebec, Desjardins offers diverse investment options, seamless plan administration, and educational tools to help employees understand their savings strategy
  • Sun Life, Canada Life, RBC, and BMO: Sun Life, Canada Life, RBC, and BMO offer reliable Group RRSP programs, each varying in fee structure, fund lineup, administrative support, and financial literacy tools. Their extensive national networks and employer resources make them competitive options
Learn more about the best group insurance companies in Canada in 2025

How to choose the right retirement plan for your employees?

Choosing between a pension plan and a Group RRSP requires you to align with your workforce needs and long-term organizational goals. Here are some questions to consider:

  • What are the demographics of your workforce?

Younger, mobile employees often prefer the flexibility of Group RRSPs, while older, long-tenured employees may value the stability of a pension

  • How competitive is your benefits strategy?

In industries where talent competition is high, offering modern retirement solutions like Group RRSPs with matching employer contributions can boost recruitment and retention

  • What is your budget and administrative capacity?

Group RRSPs are often easier and less expensive to administer than traditional defined benefit pension plans, making them ideal for small businesses and startups

Ultimately, Group RRSPs are well-suited for organizations seeking flexibility, lower liability, and simplified management without compromising employee value.

Should employees prioritize a Group RRSP or a pension plan?

For employees, choosing the right retirement savings tool depends on their financial goals, risk tolerance, and career plans. Here’s how you can decide between pension plans and Group RRSPs:

  • When is a pension better?

If you value guaranteed retirement income and plan to stay with one employer long term, a defined benefit pension may provide more security.

  • When is a Group RRSP better?

If you prefer investment control, want portability, or may change jobs often, a Group RRSP offers more flexibility and autonomy.

Many Canadians benefit from a combined approach, participating in an employer-sponsored plan while also contributing to a personal RRSP or TFSA. This strategy spreads risk and enhances long-term retirement security.

How to get the best group retirement plan in Canada?

Choosing the right group retirement plan in Canada can significantly impact your employees’ financial security and your company’s overall benefits strategy. To get the best group retirement plan, you need to consider factors like plan flexibility, contribution matching, administrative simplicity, and long-term growth potential.

Start by identifying your team’s retirement goals and financial literacy needs. Compare options such as Group RRSPs, Defined Contribution Pension Plans (DCPPs), and Deferred Profit Sharing Plans (DPSPs) to see which structure aligns with your business and budget.

Working with a trusted advisor simplifies the process. At PolicyAdvisor, our expert advisors help you choose from over 30 of Canada’s leading retirement plan providers. They can also help you evaluate, compare, and choose a plan that fits your company’s needs. Schedule a call with us today to get the best group retirement plan quotes in Canada!

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Frequently asked questions

What are the tax implications of withdrawing from a group RRSP versus a pension plan?

Withdrawals from both Group RRSPs and Registered Pension Plans (RPPs) are taxed as income in the year they are received. However, there are key differences in flexibility and timing:

  • Group RRSPs offer more withdrawal flexibility. You can access funds at any time, although taxes will apply, and withholding tax may be deducted at the source. This flexibility allows individuals to plan withdrawals during lower-income years typically during retirement to reduce their overall tax burden.
  • Pension plans, especially Defined Benefit (DB) pensions, usually pay out predictable monthly amounts once retirement begins. These payments are taxable and may result in higher annual taxable income. Withdrawals outside of normal retirement timing are generally not permitted unless under special circumstances, and are subject to rules based on provincial or federal jurisdiction.

Careful planning is essential to minimize taxes, particularly when choosing when and how to access retirement funds.

How does the stability of a pension compare to the flexibility of a group RRSP?

Pensions, especially defined benefit plans, provide long-term stability through predictable, guaranteed retirement income. They are less influenced by market performance and are managed by professionals on behalf of employees. In contrast, Group RRSPs offer greater flexibility since employees can choose investments, adjust contributions, and withdraw funds as needed. However, this flexibility also introduces risk and requires more personal responsibility to ensure long-term retirement success.

Can I have both a pension plan and a group RRSP?

Yes, you can participate in both a pension plan and a Group RRSP if your employer offers both options. However, contributions to both plans count toward your overall RRSP contribution limit set by the Canada Revenue Agency (CRA). This means you must monitor your total annual contributions to avoid overcontribution penalties. Having access to both plans can be a powerful strategy to diversify your retirement income sources and maximize employer matching opportunities.

Do pension plans offer better tax benefits than Group RRSPs?

Both pension plans and Group RRSPs offer valuable tax benefits, but in different ways. Pension contributions, especially in defined benefit plans, reduce taxable income and build toward a guaranteed income stream in retirement. Group RRSPs also provide immediate tax savings through payroll deductions and tax-deferred investment growth. The better option depends on your income level, tax bracket, and long-term goals—pensions offer predictability, while Group RRSPs offer flexibility and potential tax planning advantages.

Are pension plans safer than group RRSPs?

Pension plans—particularly defined benefit (DB) plans—are generally considered safer because they promise a predictable, lifetime income regardless of market conditions. They are managed by the employer or a pension board and do not require individual investment decisions. In contrast, Group RRSPs are subject to market volatility and rely on employee management. While Group RRSPs offer more control and portability, they come with investment risk and no guaranteed income.

Can I transfer my pension plan funds into a group RRSP?

In most cases, you cannot transfer active pension plan funds directly into a Group RRSP. However, if you leave your employer, you may be eligible to transfer the commuted value of a vested defined benefit or defined contribution pension into a Locked-In Retirement Account (LIRA). From a LIRA, certain funds may later be transferred to a RRSP under specific conditions, but Group RRSPs typically do not accept direct pension rollovers. Always consult with your plan administrator before making any decisions.

What happens to my retirement savings if I change jobs?

If you participate in a pension plan and change jobs, the outcome depends on your vesting status and the type of plan. You may be entitled to the commuted value of your pension or a deferred pension benefit. In a Group RRSP, your contributions and often employer contributions—are yours to keep and can be transferred to your personal RRSP or another retirement account. Group RRSPs are more portable and flexible when changing jobs, while pensions may offer less control over how and when funds are accessed.

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Best Group Insurance Companies in Canada (2025) – Overviews and Ratings

Most employers in Canada want the best for their employees. And why shouldn’t they? Having your employees’ backs will mean they’ll have yours too. It is a win-win situation. 

So the question is, how can you, as an employer, go the extra mile for your workers? The easiest answer is by offering a group benefit plan. According to a report by CHLIA, almost 90% of health insurance sold in Canada is a part of a group insurance plan.

Employee benefits plans or group plans are a bunch of perks, such as health, dental care, vision care, paramedical and medical services, and life insurance that are offered by employers to their employees.  In this blog, we’ve reviewed the top group benefits providers in Canada and have listed their unique offerings.

Best group companies Canada
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What are the best group insurance companies in Canada?

In Canada, companies such as Sun Life, Canada Life, Manulife, Desjardins, Green Shield, and more offer the best group health insurance rates in 2025:

Sun Life

1. Sun Life 

Overview: Sun Life Financial, one of Canada’s top group benefits providers Canada, offers a wide range of insurance, investment, and retirement, and group benefits solutions. Understanding the importance of workplace health, Sun Life offers a range of group health insurance products that include digital tools to manage employee onboarding, benefits, reports, billing statements, and more. The company offers all of this while balancing costs and is a great option if you’re looking for group health benefits for your organization.

PolicyAdvisor Rating: 4.5/5

What they offer:

  • Extended Health Care (EHC), dental, and vision care
  • Life and accidental death insurance
  • Travel assistance
  • Short-term and long-term disability
  • Healthcare Spending Accounts (HSA)
  • Mental health and wellness
  • Paramedical expenses such as chiropractors, physiotherapists and other medical professionals
  • Prescription drugs cost management

What we like: 

  • Digital enrolment and management tool that helps onboard members and allows efficient admin management
  • The Lumino Health Virtual Care service that provides access to physical and mental health resources and specialists 
  • Pharmacy benefits management that helps save on medication costs
  • Teladoc Medical Experts® Services for insureds diagnosed with a serious medical condition including consultation on treatment plans, locating specialists and customized guidance, support and advice
  • Offers one of the highest coverage maximum for Dental and Vision
  • Flexible plan design options to meet employee needs and fit companies budget
  • My Sun Life Mobile app that lets employees submit their EHC claim and make payments within 24 to 48 hours
  • Integrating diversity, equity and inclusion (DE&I) such as gender affirmation coverage
Canada Life

2. Canada Life 

Overview:  With over 170 years of experience, Canada Life is a name you can trust when it comes to group health insurance. They’ve been around the block and definitely know a thing or two about keeping businesses covered. With a range of options, including health, dental, life, and disability insurance, they’ve got your employees covered.

PolicyAdvisor Rating: 4.5/5

What they offer:

  • Life, critical illness, and accidental death insurance
  • Prescription drug cost management
  • Short-term and long-term disability insurance
  • Dental and vision care
  • Paramedical services (such as massages and physiotherapy)
  • Healthcare Spending Accounts (HSA)
  • Emergency medical coverage and travel assistance
  • Additional benefits for retirees or self-employed

What we like: 

  • Freedom at WorkTM that customizes solutions for small businesses 
  • They allow the possibility of a savings plan (RRSP, TFSA, DPSP)
  • Expats or new to Canada insurance plans that help international employees get the health coverage they need
  • Extensive network of healthcare providers nationwide
  • Digital admin tools for online enrolment, management and billing
  • DrugSolutions program helps you provide the care your employees need at a price you can afford
Manulife

3. Manulife 

Overview: Manulife Financial, a leading provider of financial services in Canada, offers comprehensive solutions for group benefits. With a strong commitment to supporting businesses and their employees, Manulife leverages over 130 years of experience to deliver innovative and flexible group health services.

PolicyAdvisor Rating: 4.5/5

What they offer:

  • Life and Accidental death Insurance
  • Short and long-term disability
  • Extended Healthcare
  • Dental & Vision
  • Healthcare Spending Accounts (HSA)
  • Coordination of benefits (COB)
  • Mental health support
  • Personalized medicine program
  • Opioids and drug plan

What we like: 

  • One of the most technologically advanced with AI underwriting and innovative mobile app
  • Manulife Mobile Enhancement facilitates employee health management with convenient access to group benefits via mobile technology
  • The company offers a digital setup that is quick and efficient, with completion within 5-7 business days
  • Trip cancellation insurance that is available as an optional add-on to Emergency Travel Assistance (ETA) plans
  • Manulife offers a 28-month rate guarantee on all benefits, along with a standard 16-month rate guarantee for added stability
  • The Employee Family Assistance Program (EFAP) is integrated with Mental Health Counseling Plus, providing comprehensive support for overall well-being
  • Manulife Health by Design™ ensures that employees receive the right care, at the right time, and in the right way, enhancing health outcomes
  • Manulife offers a Personalized Medicine Program to determine the right dosage and medication for plan members
  • DrugWatch which is an oversight program to ensure value as drug costs rise
  • My Drug Plan which offers centralized access to pharmacy-related resources and drug lookup tool
  • Specialty Drug Care Program that manages specialty drugs to save costs and improve health outcomes
Desjardins

4. Desjardins 

Overview: Desjardins Group, a leading cooperative financial institution in Canada, is renowned for its comprehensive financial services, including insurance and investment solutions. With a strong focus on member satisfaction and community support, Desjardins delivers innovative group health insurance offerings like the Manager Assistance Program, Health is Cool 360° Platform and more.

PolicyAdvisor Rating: 4.5/5

What they offer:

  • Life, Accidental Death and, Critical Illness insurance
  • Online app for claims and other services
  • Health and wellness resources
  • Travel insurance
  • Employee assistance program
  • Virtual healthcare
  • Patient support program for specialty drugs
  • Second medical opinion add on

What we like: 

  • Offers the highest paramedical coverage for health practitioners such as chiropractor, massages etc.
  • Most of Desjardins’ group insurance plans include an employee health and wellness program, and can also include prevention and intervention services
  • The Omni all-in-one mobile app that helps members submit claims and access information
  • The Costco Preferred Pharmacy Network offers plan members a $5.00 discount per prescription if they have a co-insurance or per prescription deductible (Quebec is an exception)
  • Drug cost saving by promoting biosimilars – savings of 15-50% for each targeted drug
  • Out-of-country coverage that includes 180-day trips, a $5,000,000 lifetime maximum, optional trip cancellation, and 24/7 health assistance
  • Gender affirmation that covers surgeries and treatments not covered by public health insurance and includes a workplace support kit
  • The Health is Cool 360° Platform that offers resources to manage plan members’ health
  • Health PACT that offers personalized phone coaching from a nurse to manage health issues and improve health
  • Manager Assistance Program provides support for managers in resolving workplace issues and coaching, legal, financial, HR advice, and post-traumatic counseling
GSC

5. Green Shield Canada

Overview: Green Shield Canada (GSC) is a leading provider of health and dental insurance in Canada, renowned for its innovative approach to employee benefits. They offer employee benefits solutions like the iBenefits platform, specialty care program, claims management assistance, etc.

PolicyAdvisor Rating: 4.5/5

What they offer:

  • Day-to-day, routine medical and dental expenses 
  • Emergency medical travel
  • Travel insurance
  • Fraud and abuse management solutions
  • Contact center solutions
  • Claims management assistance
  • Formulary, claim cost, and utilization management
  • Specialty pharmacy services via NKS Health

What we like: 

  • Flexible and affordable plans for health and dental only, without mandatory pooled benefit requirement
  • All in one Honeybee Benefits app for quick claim assistance and benefit services
  • All in one digital admin tool for easy enrolment and management
  • Standardized plan options to select from
  • Administration Services Only (ASO) allows you to control the cost of employee benefits — pay only for what your employees use
  • Specialty pharmacy services offered by NKS Health
  • Not-for-profit, reinvests in community health initiatives
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Blue Cross

6. Medavie Blue Cross

Overview: Medavie Blue Cross is one of the top group benefits providers in Canada. As a not-for-profit organization, Medavie Blue Cross reinvests its profits to support community health initiatives and improve the lives of Canadians. They’re a reliable choice if you want to customize the group health benefits in your organization. 

PolicyAdvisor Rating: 5/5

What they offer:

  • Drug solutions
  • Health Connected offers a Health Risk Assessment and a comprehensive Wellness Portal
  • Connected Care platform offers innovative digital health resources
  • Health and wellness programs
  • Employee & Family Assistance offering health coaching and chronic disease management
  • Second medical opinion
  • Online doctors’ assistance
  • Gender affirmation benefit
  • Protection Plus Benefits (digital insurance platform)
  • Disability, life and AD&D

What we like:

  • Extensive nationwide coverage with a huge health provider network and broad accessibility
  • High rate guarantee and renewal caps
  • Blue Cross offers Medavie Mobile, one of the highest-rated apps in the industry with a 4.6-star rating on Google and over 8,000 reviews where plan members can easily submit claims, search for healthcare providers, and set reminders for medication refills
  • Blue Cross also has the Protection Plus Benefits digital platform which includes portable critical illness, life, and AD&D coverage for all group members and their dependents. It offers group pricing and unique advantages with no additional cost or administration for the employer
  • It offers one of the most comprehensive plans in the industry, specifically for travel insurance coverage up to 180 days (under age 75), $2 million per incidence ($5 million for Benefits for Small Businesses), $5,000 for trip cancellation, and $500 for baggage loss
  • Second-opinion services that provide members and eligible dependents access to specialists at world-class medical institutions for a second opinion when diagnosed with a serious illness
  • 360 Total Care is a personalized coaching program for managing diabetes, high blood pressure, high cholesterol, and obesity. Supported by digital health devices linked to the 360Care app for remote health monitoring
  • Blue Advantage that allows members to save up to 20% on health and wellness services/products, including dental, medical supplies, vision care, and fitness
  • Virtual medical care and Employee Assistance Program are included at no additional cost for Benefits for Small Business plans
Equitable Life

7. Equitable Life of Canada

Overview: Equitable Life of Canada is a trusted name in the insurance industry, known for its comprehensive coverage and commitment to customer service. Equitable Life of Canada has solutions across requirements for health, dental, or travel insurance. So, you can choose a policy based on what your employees need most.

PolicyAdvisor Rating: 4.5/5

What they offer:

  • Life, accident and critical illness
  • Health and dental
  • Healthcare spending accounts (HCSA)
  • Taxable spending account (TSA)
  • Disability management solutions
  • Health, wellness and online services
  • myFlex flexible benefits
  • EZBenefits for small business
  • Personal health and dental coverage
  • Fraud detection and prevention
  • Drug plan management
  • Disability management

What we like:

  • Equitable offers a well-differentiated range of plan design options (Bronze, Silver, Gold, and Platinum)
  • The Online Plan Member Enrolment (OPME) tool streamlines the onboarding process for new benefits plans, benefiting both administrators and members. Available at no extra cost for Equitable group benefits plans, it sends personal emails with reminders and instructions to members, easing the workload for administrators
  • Equitable EZClaim® that enables plan members to submit claims through a secure web portal or mobile app, leading to quicker claim payments
  • Long-term pricing stability for health and dental benefits
  • Minimum participation requirement is only 2 employees, hence, ideal for small businesses
Empire Life

8. Empire Life

Empire Life is a reputed life insurance and group benefits provider, committed to supporting the financial security and well-being of Canadian employees and their families. Empire Life has flexible and comprehensive plans that cater to the diverse needs of businesses.

PolicyAdvisor Rating: 4.5/5

What they offer:

  • Health and dental coverage
  • Accidental death and dismemberment coverage (AD&D)
  • Life insurance
  • Critical illness insurance
  • Mental health support 
  • Healthcare spending accounts
  • Paramedical coverage
  • Travel insurance

What we like:

  • Offers long rate guarantees and renewal caps for long term price stability
  • User-friendly mental health portal called Mental Health Navigator for easy access to solutions
  • Telemedicine by Teledoc Health that provides 24/7 remote access to primary medical care and professionals
  • Quick e-claims and provider-submitted claims which means that the money is back in an employee’s account within 24 hours
  • Employee Assistance Program (AssistNow) that assists plan members
  • OnCallogic that provides specialized cancer support

9. Benefits by Design (BBD)

BBD Canada, also known as Benefits by Design, is one of the best third-party group health insurance administrators, dedicated to enhancing the well-being of Canadian employees and their families. BBD Canada focuses on creating flexible, innovative, and comprehensive benefits plans tailored to the unique needs of businesses.

PolicyAdvisor Rating: 4.5/5

What they offer:

  • Health and dental coverage
  • Catastrophic drug coverage
  • Life insurance
  • Critical illness insurance
  • Mental health diagnostics
  • Employee Assistance Program
  • Healthcare spending accounts
  • Paramedical coverage
  • Travel insurance
  • Orthotics
  • Personal or wellness spending accounts (PSA/WSA)

What we like:

  • Plan Administration Portal that allows employers to make updates to employee records, add dependents, change salaries, legal names, etc.
  • Telehealth services that allow plan members to access medical professionals remotely
  • Diagnostic Specialist Access Insurance (DSAI) that allows quicker access to services like MRIs, CT scans, etc.
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How does group health insurance work in Canada?

Group health plans are offered by employers and businesses in Canada, typically on a cost-sharing basis. These plans cover access to medical, dental, and other health-related services. This benefit supports employees’ well-being and enhances job satisfaction and loyalty, with additional tax benefits.and additional riders.

Here’s how group health insurance works in Canada:

  • Employer-sponsored plan: Employers offer group insurance to eligible employees, often covering a significant portion of the premiums
  • Cost sharing: Employees pay the remaining premiums through payroll deductions
  • Broad coverage: Policies typically cover medical, dental, vision, and prescription drug expenses
  • Eligibility requirements: Employees may need to work a minimum number of hours or complete a waiting period to qualify
  • Tax benefits: Employer contributions are usually tax-deductible, making it a cost-effective benefit for businesses
  • Flexibility: Some plans allow employees to customize their coverage with additional benefits

What types of group insurance plans are available in Canada?

In Canada, several types of group insurance plans are available to meet the needs of businesses and their employees. Some of the best plan include health insurance, dental insurance, vision insurance, disability insurance, critical illness insurance and more:

  • Health insurance: Covers medical expenses like prescriptions, hospital stays, and specialist visits
  • Dental insurance: Provides coverage for routine dental care, cleanings, and major procedures
  • Vision insurance: Covers eye exams, glasses, and contact lenses
  • Life insurance: Offers a death benefit to the employee’s beneficiaries
  • Disability insurance: Provides income replacement during illness or injury
  • Critical illness insurance: Pays a lump sum if diagnosed with a serious illness
  • Employee Assistance Programs (EAPs): Support for mental health and wellness

 

What is the average cost of group benefits insurance per employee in Canada?

The average cost of a group health insurance plan in Canada ranges from $1,500 to $4,000 per employee per year. The actual cost depends on the types of benefits you include, such as extended health, dental, vision, and life insurance.

For small businesses, group insurance premiums typically equal about 15% of total payroll, while larger organizations may spend closer to 30% of payroll on their employee benefits plans.

Insurers calculate premiums by multiplying the level of coverage across each benefit type by the applicable rate. Choosing the right group insurance plan helps you manage costs while offering meaningful coverage to attract and retain top talent.

What is the minimum number of employees required to qualify for group insurance in Canada?

In Canada, most insurers require a minimum of three to five full-time employees to qualify for a group insurance plan. Some providers may allow you to start a plan with just two unrelated employees, as long as they meet the insurer’s minimum working hours, which is usually 20 to 30 hours per week.

To activate the plan, employers must include a majority of eligible employees, often at least 70% participation, to ensure balanced risk. Group health benefits rely on risk sharing across a pool of employees, which is why insurance companies set minimum group sizes

Small businesses that don’t meet these requirements can consider a Health Spending Account (HSA) or an individual employee benefits plan until they grow.

Can I customize group benefits packages for different types of employees?

Yes, you can customize group benefits packages in Canada to meet the unique needs of different types of employees. Many employers design tiered employee benefits plans that offer varying levels of coverage based on job role, seniority, or employment status (e.g., full-time vs. part-time).

Insurers allow you to structure plans with different coverage for executives, managers, and general staff, while still maintaining compliance with group insurance rules. For example, executives may receive enhanced health, dental, and life insurance benefits, while entry-level employees may receive core health and drug coverage.

How to purchase a group benefits insurance plan?

To provide your employees with meaningful and cost-effective protection, you need to take a structured approach when purchasing a group benefits insurance plan in Canada. Follow these key steps to make an informed decision and set your team up with the right coverage:

  • Identify your employees’ needs: Start by analyzing what types of benefits—like health, dental, vision, or mental wellness—your team values and requires the most
  • Research and compare group insurance providers: Look into various group benefits insurance providers in Canada to understand the types of plans available and their flexibility
  • Evaluate plans for coverage, cost, and value: Carefully compare premiums, deductibles, coverage limits, and additional features to find a plan that balances affordability with comprehensive protection
  • Speak with a licensed insurance advisor: Connect with an expert (such as our licensed group insurance advisors at PolicyAdvisot) who can walk you through policy details, explain tax advantages, and ensure you stay compliant with regulatory requirements
  • Choose the best-fit plan for your business: Select a plan that aligns with your company’s goals, budget, and the needs of your workforce
  • Work with the provider to enroll your employees: Collaborate with the insurer to roll out the plan, guide your employees through the enrollment process, and ensure coverage starts without delays

Spoilt for choice? Let our experts help you decide!

Whether you’re looking for comprehensive coverage, competitive pricing, or top-notch service, there’s a provider out there that’s perfect for you. Finding the best group insurance company in Canada is all about finding the right fit for your team. 

At PolicyAdvisor we work with 30+ of Canada’s best insurance companies. Our expert licensed advisors assist you with deciding the ideal group benefits provider for you. Our advisors will ask you simple questions about your business, employees, and the coverage amounts you’re seeking to find the best group coverage plan for you.

Looking for group health insurance?

Give us a call at 1-888-601-9980 or book some time with our licensed experts.

Frequently asked questions

Are group health insurance premiums tax-deductible for employers in Canada?

Yes, group insurance premiums are generally tax-deductible for employers in Canada. Premiums paid for employee health and dental benefits can typically be claimed as a business expense, reducing the employer’s taxable income. However, tax treatment may vary for other types of coverage, such as life or disability insurance. 

To ensure compliance and maximize deductions, employers must consult a tax professional or review Canada Revenue Agency (CRA) guidelines. This makes group insurance a financially beneficial offering for small businesses.

Why should employers in Canada offer group benefits?

An employee benefits package helps cover costs for medical services not covered by provincial health care plans. It can also be combined with a retirement and savings plan to help employees achieve their financial and retirement goals. While group benefits seem to favor employees, they mutually benefit both parties.

Benefits for Employees:

  • Attract and retain talented employees
  • Obtain comprehensive coverage at affordable rates
  • Access a wider range of benefits
  • Lower costs compared to most private plans
  • Protect the health and well-being of employees and their families
  • Reduce financial stress during unexpected events

Benefits for Employers:

  • Gain tax advantages
  • Reduce administrative burdens
  • Increase employee satisfaction and productivity
  • Improve morale and enhance productivity
  • Write off group benefit premiums as a business expense
  • Maintain a competitive edge in the job market
  • Attract and retain key employees

What factors should I consider when selecting the best group benefits provider in Canada?

When you’re picking a group insurance provider in Canada, here are a few key things to consider:

  1. Coverage that meets your employees’ needs: Think about what your team needs. Do they require extensive coverage or just the essentials? Make sure the provider offers plans that match your crew’s health needs.
  2. Price tag vs. quality: Balance affordability with quality service. You want a provider that won’t break the bank but still delivers top-notch care when your team needs it most.
  3. Network of providers: Check if the insurance provider has a wide network of doctors, specialists, and hospitals. Having plenty of options means your team can access care conveniently.
  4. Reliable customer service: Consider how the provider treats its customers. You’ll want one that’s easy to reach, helpful, and quick to resolve any issues your team might face.
  5. Flexibility for future needs: Think about the future. Does the provider offer flexibility to adapt as your team grows or if your needs change? You’ll want a partner who can keep up with your evolving demands.

Several employees in my organization take regular vitamins and supplements. Will any of these companies cover these?

Supplements are not eligible for benefits under most group health plans. However, some group policies may cover prescription supplements. 

What factors should I consider when selecting a group insurance provider in Canada?

Think about what matters most to your team. Do you need comprehensive coverage or just the basics? Are you looking for affordability or top-notch service? Keep these factors in mind when comparing providers to find the perfect match.

Can you recommend reputable group insurance companies in Canada with a specific focus on health?

Absolutely! Sun Life Financial Corporation, Canada Life Assurance Company, Manulife Financial Corporation, Desjardins Insurance, and Green Shield Canada are all great options known for their quality service and comprehensive coverage options.

As an employer in Canada, am I required to offer group benefits to my employees?

No, employers in Canada are not legally required to offer group benefits to their employees. However, providing group benefits can be a valuable tool for attracting and retaining talent, as well as enhancing overall employee satisfaction and well-being.

How many employees does a company need to qualify for group benefits insurance?

Typically, a company needs at least 3 employees to qualify for group benefits insurance. The exact number can vary depending on the insurance provider and the specific plan requirements.

Can I offer benefits to part-time employees?

Yes, many employers choose to offer benefits to part-time employees. While not all plans may cover part-time workers, some insurance providers offer flexible options that allow coverage for part-time staff, helping to attract and retain a diverse workforce.

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How many employees are needed to be eligible for group health insurance?

Group health insurance is one of the best ways to attract and retain talented employees. In fact, according to a report by CHLIA, nearly 90% of all health insurance in Canada is sold through group insurance plans. This highlights just how essential they’ve become in the workplace.

If you run a small business in Canada, you might be wondering: How many employees do you really need to qualify for group health insurance? In most cases, you need at least two employees who meet the minimum hours requirement. However, this number can vary depending on the insurer.

In this blog, we’ll explain group insurance eligibility, who counts as an employee, and how small businesses can qualify for the right group health plan.

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What is group health insurance and why does it matter?

Group health insurance is a type of employee benefits coverage that a business or organization offers to its employees. Instead of each employee purchasing their own plan, the employer arranges coverage through an insurance provider for the entire group of employees, often at a lower cost per person due to group pricing.

Benefits for employers

  • Tax deductions: Premiums paid by the employer are typically considered a business expense and are tax-deductible
  • Attract and retain talent: Health benefits are a top priority for job seekers. Offering group health coverage can make your business more appealing and help attract top talent, and improve employee satisfaction
  • Enhanced team productivity: When employees feel secure about their health coverage, they’re more likely to stay focused and engaged at work, which improves productivity

Benefits for employees

  • Lower premiums: Group rates are usually more affordable than individual plans, which can be beneficial for employees 
  • Better coverage options: Group plans often offer comprehensive benefits, including dental, vision, and prescription drugs
  • Simplified enrollment: Employees can join the plan through their employer, often with minimal paperwork and without any administrative hassle
Learn more about group health insurance in Canada (2025)

Minimum number of employees required to avail group health insurance

In Canada, most group health insurance providers require a minimum of two eligible employees to set up a plan. This generally includes the business owner plus at least one other employee. Family members and spouses of the business owner often do not count toward the minimum employee count unless they are on payroll as full-time staff.

To qualify for group health insurance, employees must usually work at the organization for at least 20 to 30 hours per week on a regular basis. Some insurers may offer flexibility for part-time workers or contract employees, but standard group plans are built for businesses with a consistent team of full-time staff. 

If you have fewer than two qualifying employees, your best option may be an individual health plan or a health spending account (HSA) tailored to small business owners.

Can sole proprietors get group health insurance?

In Canada, sole proprietors or one-person businesses usually don’t qualify for group health insurance plans. Group plans are designed for companies with at least two enrolled employees. So if you’re the only one on payroll, insurers won’t issue a policy under a group structure.

However, if you operate solo, you still have several practical alternatives, including individual health insurance plans, health spending accounts and personalized benefits packages.

  • Individual health insurance plans: These offer similar benefits to group plans and can be customized based on your needs and budget
  • Health Spending Accounts (HSAs): You can use a health spending account (HSA) to pay for a wide range of medical expenses in a tax-free way, making it a flexible and cost-effective alternative
  • Personalized benefits packages: Some providers offer plans specifically for freelancers, contractors, or microbusinesses with just one or two people
Read more about the various types of group health insurance options in Canada
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Which employees are eligible for group health insurance?

In Canada, eligible employees for group health insurance are typically those who meet specific criteria set by the insurance provider and the employer. Eligible employees may include full-time staff, individuals who are actively at work, Canadian citizens, on a company payroll, etc.

Here’s who usually qualifies:

  • Full-time employees: Most insurers require employees to work at least 20 to 30 hours per week on a permanent basis
  • Actively at work: The employee must be actively working (not on leave or laid off) at the time of enrollment
  • On payroll: The employee must receive a regular T4 slip (proof of employment income in Canada)
  • Canadian citizens: The employee must be a permanent resident of Canada to be eligible for group health insurance
  • Completed waiting period: Some employers apply a waiting period (e.g., 3 months) before new hires become eligible for the benefit`

Employees on probation may become eligible for group health insurance after the probation period ends. While part-time staff or contractors are typically excluded, some insurance plans may offer limited coverage to such employees if the employer chooses to include them.

What is the average cost of group health insurance per employee in Canada?

The average cost of a group health insurance plan in Canada ranges from $1,500 to $4,000 per employee per year. The actual cost depends on the types of benefits you include, such as extended health, dental, vision, and life insurance.

For small businesses, group insurance premiums typically equal about 15% of total payroll, while larger organizations may spend closer to 30% of payroll on their employee benefits plans.

Insurers calculate premiums by multiplying the level of coverage across each benefit type by the applicable rate. Choosing the right group insurance plan helps you manage costs while offering meaningful coverage to attract and retain top talent.

Find out more about the group benefits that remote workers can avail in Canada

Tips for small businesses to get a group health insurance plan

When you are getting started with group health insurance as a small business owner in Canada, make sure to understand the eligibility criteria, set a realistic budget, choose the right plan type, understand the benefits packages, and work with an insurance broker for the best outcome.

  • Understand the eligibility criteria: Ensure you meet the minimum requirement of having at least two eligible employees. Confirm that your team is on payroll, has provincial health coverage and are not made up solely of contractors
  • Set a realistic budget: Decide how much your business can contribute monthly. Many small businesses cover 50% to 100% of employee premiums. A clear budget helps narrow down the most suitable plans according to your budget
  • Choose the right plan type: Consider traditional health and dental plans or explore additional riders for better customization and extended coverage
  • Review annually: Group health insurance needs can change as your team grows. Review your plan annually to ensure it still meets your employees’ needs and fits your budget
  • Work with an insurance broker or an advisor: It is best to partner with a licensed group benefits advisor who understands the small business market. Companies like PolicyAdvisor have a team of dedicated experts who can help you compare quotes and find the best group health insurance for your needs
  • Mandatory participation: For most small businesses, all eligible employees must participate in the group benefits plan if one is offered, unless they have comparable coverage through a spouse or partner’s plan (in which case, they may opt out of health and dental benefits only, but not other core benefits like life insurance)

How to get the best group health insurance quote in Canada?

To get the best group health insurance quote in Canada, it’s important to compare options across multiple providers—not just in terms of price, but also flexibility, coverage levels, and long-term value. That’s where PolicyAdvisor can help.

At PolicyAdvisor, we work with Canada’s top insurance providers to give small businesses access to a wide range of customized group health plans. Whether you’re a startup with just two employees or a growing team with evolving needs, we help you build a benefits package that fits your budget and goals.

Our licensed advisors guide you through every step of the process, from initial purchase to after-sales support. Schedule a call with us today to get the best group health insurance rates in Canada today!

Need group health insurance?

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Frequently asked questions

Can I offer separate benefits to different groups of employees within the same plan?

Yes, but with limitations. Most insurers allow you to create employee classes (e.g., management vs. staff) with customizable levels of coverage. However, you must apply consistent rules within each class to avoid discrimination and maintain plan compliance. A licensed advisor can help you structure your plan fairly and legally.

What happens to the group health insurance plan if an employee leaves the company?

When an employee leaves, their coverage under the group plan ends, typically on their last day of employment or at the end of the month, depending on the policy. Many insurers offer conversion options that allow the former employee to switch to an individual health plan without medical underwriting, as long as they apply within a set timeframe. Make sure to inform your insurance company of any personnel changes to ensure your premiums reflect the updates to your staff. 

Can my business write off group health insurance premiums as a tax expense?

Yes, group health insurance premiums are generally considered a tax-deductible business expense. This means your business can reduce its taxable income while offering valuable benefits to employees. Additionally, employees typically receive these benefits tax-free, making group insurance a win-win from a tax perspective.

What if my business is seasonal or has high staff turnover?

If your workforce fluctuates, you can still offer group insurance, but you’ll need to work with a flexible provider. Choose a plan that allows easy onboarding and removal of employees throughout the year. It’s also important to clearly define eligibility and waiting periods to avoid administrative headaches during busy or off-peak seasons.

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Group health insurance for Canadian restaurant employees: A guide

In Canada’s fast-paced restaurant industry, group health insurance for restaurant employees isn’t just a perk; it’s a powerful tool for retention and operational stability. According to a report by Restaurants Canada, 62% of restaurants are operating at a loss or barely breaking even. As Canadian restaurants are facing such an enormous staffing crisis, offering employee benefits can set restaurants apart.

High turnover in restaurants creates multiple challenges, including: 

  • Disrupted customer service quality
  • Increased recruitment and training costs
  • Decreased team morale and cohesion
  • Lost institutional knowledge

Health insurance for Canadian restaurant employees helps address these issues by boosting employee satisfaction, reducing churn, and supporting physical and mental well-being. This guide breaks down how Canadian restaurant owners can build a loyal workforce with the right health insurance and employee benefits strategy.

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What are the key aspects of group health insurance for restaurant employees?

Group health insurance is one of the most effective small business benefits packages that Canadian restaurant owners can use to attract and retain staff in a competitive labour market. Group policies often cost less than individual plans and provide more consistent coverage across employees.

Here are the key aspects restaurant owners should consider when selecting a group medical insurance plan for their teams.

Coverage 

A typical group medical insurance plan covers the extensive healthcare needs of employees, including routine and medical emergencies. Some of the main coverage options include:

  • hospital stays
  • prescription drugs
  • emergency care
  • paramedical services like physiotherapy
  • mental health support

Some employee health insurance companies also offer optional add-ons such as dental, vision, and travel insurance, depending on the insurer and employer preferences.

Cost

Group health insurance plans typically cost less than individual plans due to risk pooling.

For small businesses with 10-50 employees, group health insurance can typically cost between $250 and $350 per employee per month. Employers can choose to cover the full premium or share the cost with employees.

Eligibility

Individuals are eligible for health insurance after a probationary period. To be eligible, employees must meet one of the following criteria: 

  • 30 to 90 days of permanent employment
  • Minimum weekly hour requirement of 20+ hours per week

Full-time employees are generally included, but some insurers offer flexibility for part-time or seasonal staff, which is especially relevant for restaurants with fluctuating staffing needs.

Family coverage

Most health insurance plans allow employees to add dependents, including spouses and children, for an additional premium. Offering family coverage can increase employee loyalty, particularly among older or long-term staff members.

Claim settlement

Insurers typically settle claims digitally through apps or online portals. Insurers typically provide direct billing for pharmacies and dental services, reducing upfront costs for employees and making the claims settlement process seamless.

Waiting periods

Insurers may impose waiting periods ranging from 3 to 12 months for certain healthcare benefits, including dental, vision, or maternity coverage. Employers should clarify these timelines with insurers to manage employee expectations.

Learn more about the types of group health insurance plans in Canada

Why does health insurance matter for restaurant employees in Canada?

Canada’s restaurant industry is quite competitive, with annual staff turnover often exceeding 70%. Business owners can choose to offer restaurant employee benefits in Canada, like small business health insurance, making it a game-changer in terms of recruitment and retention.

Restaurant jobs come with distinct health risks, such as:

  • Physical demands and potential for injuries
  • Limited or non-existent paid sick leave
  • High-stress environment affecting mental health
  • Irregular hours impacting sleep and wellness

Providing health insurance for restaurant employees shows your team they’re valued. It helps attract talent, boosts morale, reduces absenteeism, and supports a healthier, more stable workforce.

In a high-turnover industry, offering employee insurance is more than a perk—it’s a smart strategy for long-term employee retention and success.

What are the benefits of offering health insurance for Canadian restaurant employees?

In an industry known for high turnover and burnout, offering employee insurance helps create a more stable, motivated, and loyal team. It also strengthens your restaurant’s reputation as a responsible and attractive employer, especially as job seekers increasingly prioritize benefits alongside pay.

  • Reduced turnover and training costs: Staff retention is one of the biggest challenges in the hospitality sector. Small business health insurance can be a major factor in convincing employees to stay longer, reducing the need for constant recruitment and onboarding
  • Improved employee morale and loyalty: When employers value their employees and their health, it fosters a sense of trust and commitment. This can lead to a more engaged and positive work environment, where team members go the extra mile
  • Competitive advantage in restaurant hiring: In a crowded job market, especially in cities with staffing shortages, offering a health plan can give your restaurant the edge over others that don’t provide benefits
  • Enhanced restaurant reputation and workplace culture: Offering health coverage signals that you’re a supportive employer. It boosts your brand image, not just with current and prospective employees, but also with customers who appreciate socially responsible businesses
  • Reduced absenteeism and presenteeism: Employees with access to healthcare are more likely to address issues early and stay healthier overall. This leads to fewer sick days and better performance when on the job
Find out more about the benefits of group health insurance in Canada
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What challenges do Canadian restaurants face with employee health insurance?

Canadian restaurants operate on tight margins, and implementing a small business health insurance plan can feel financially out of reach, especially for small or independent establishments. On top of that, fluctuating staff hours, seasonal employment, and high turnover make it hard to offer consistent, long-term benefits.

Some of the key challenges of investing in restaurant insurance in Canada may include:

  • Limited budgets make it difficult to afford comprehensive plans
  • Irregular or part-time schedules that complicate eligibility and plan stability
  • High employee turnover reduces the long-term value of benefits for employers
  • Complexity in navigating options to find affordable, relevant coverage
  • A young, temporary workforce that often doesn’t recognize the value of benefits

As a result, many restaurant workers in Canada still go without health insurance. However, this is starting to change. More employers are realizing that offering employee health benefits can reduce turnover, improve morale, and support a more reliable, productive team.

Find out if group benefits are mandatory in Canada

What are the health insurance options for Canadian restaurant employees?

Finding the right employee benefits for your restaurant staff can feel overwhelming, especially with tight budgets, part-time roles, and fluctuating hours. Fortunately, there are several affordable health insurance solutions for restaurants in Canada that can fit your business size, budget, and staffing model.

  • Traditional group health insurance plans: These are comprehensive employer-sponsored plans that cover a wide range of medical, dental, and vision expenses. While ideal for larger teams, they may be cost-prohibitive for smaller restaurants without volume discounts
  • Health Spending Accounts (HSAs): A flexible, tax-efficient solution where employers allocate a set dollar amount for employees to spend on eligible health expenses. HSAs work well for both full-time and part-time staff, with less administrative burden
  • Association health plans: Many restaurant owners are joining industry associations that offer pooled group health insurance in Canada. These plans help small businesses access better rates and coverage through collective buying power
  • Wellness stipends and flexible benefits: Restaurant employees can use these fixed monthly amounts on wellness-related expenses, such as gym memberships, therapy, or insurance premiums. It’s an easy way to support staff health without committing to a full group plan
  • Flexible benefits for part-time and full-time staff: Consider offering tiered or voluntary participation benefits, where part-time staff can opt in. This boosts accessibility without overextending your budget

What is the cost of group health insurance for restaurant employees?

The cost of group health insurance for restaurant employees in Canada typically ranges from $150 to $350 per employee per month, depending on the level of coverage, number of employees, and how much the employer contributes. 

For small restaurants with fewer than 10 staff, a basic plan covering essentials like prescription drugs, dental care, and paramedical services may cost on the lower end. More comprehensive plans that include vision, mental health support, and employee assistance programs (EAPs) can push costs toward the higher end.

Group health insurance for 1-10 employees

Estimated monthly cost per employee: $150 – $350

Small businesses often face the highest per-employee costs because of limited risk pooling and lower bargaining power. They also tend to choose simpler plans without extensive add-ons to keep costs manageable. These plans usually include basic health, dental, vision, and paramedical services.

Group health insurance for 11-50 employees

Estimated monthly cost per employee: $250 – $350

As the number of employees increases, insurance companies can spread risk across a wider base, resulting in slightly lower average costs per employee. Businesses in this range often begin to customize plans with additional mental health support, drug coverage, or health spending accounts.

Group health insurance for 51-100 employees

Estimated monthly cost per employee: $200 – $300

At this level, employers typically qualify for more comprehensive group benefits plans with improved pricing. Many businesses begin offering tiered plans to accommodate different employee needs and roles.

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What are the alternative employee benefits options for restaurant employees? 

Not every restaurant can afford a full health insurance plan, but that doesn’t mean you can’t support your staff in meaningful ways. Many restaurants in Canada are turning to creative, low-cost alternatives that still improve employee well-being, loyalty, and performance.

  • Wellness programmes for food service workers: Offer access to fitness classes, stress management workshops, or wellness stipends to support physical and mental health
  • Employee Assistance Programs (EAPs): EAPs are confidential services that give employees access to counselling, financial planning, and mental health support, often at a low cost to employers
  • Flexible scheduling as a supplementary benefit: Predictable hours, time-off flexibility, and schedule input can greatly improve work-life balance and job satisfaction in a demanding industry
  • Education and career development benefits: Providing training, certifications, or tuition support not only enhances employee skills but also increases retention and loyalty
  • Discounted or free meals: Including staff meals in your benefits package is a practical and appreciated perk that can improve morale and reduce daily expenses for employees
Find out how small businesses can customize their group plans

How to choose the right health insurance plan for your restaurant?

Selecting the best health insurance for restaurant employees means balancing cost, coverage, and flexibility. With so many options on the market, it’s important to evaluate what fits your team’s needs and your budget. 

Key factors include your team size and eligibility requirements, the types of coverage offered, flexibility for part-time staff, and strategies for cost control and tax advantages.

  • Team size and eligibility requirements: Some plans have minimum employee thresholds, while others require full-time status. Consider how many staff will qualify and whether your team is mostly full-time, part-time, or seasonal
  • Coverage types: Look for plans that include core benefits your employees need most, such as:
    • Medical services (prescriptions, hospital care, paramedical)
    • Dental care (preventive, major, orthodontics)
    • Vision (eye exams, glasses, contact lenses)
    • Mental health support (therapy, counselling)
  • Flexibility for part-time and full-time staff:  Employers can offer tiered or voluntary plans to allow more employees to participate, especially in an industry where part-time work is common. Employers can also offer Health Spending Accounts (HSAs) or wellness stipends as flexible add-ons
  • Cost control and tax advantages: Understand your contribution options and how they impact your taxes. You can typically deduct employer-paid health benefits from your taxes, and options like HSAs can help you manage costs while still offering meaningful support
Read more about how small businesses can customize their employee benefits plans

How can I get the best small business group health insurance rates in Canada?

Getting the best small business group health insurance rates in Canada isn’t just about finding the cheapest options; it’s about securing the most value for your investment while meeting the real needs of your team. To do this effectively, you need access to multiple providers, transparent comparisons, and expert guidance. That’s where PolicyAdvisor comes in.

At PolicyAdvisor, we work with 30+ leading insurance companies in Canada, giving you a wide range of group health plans to choose from. Instead of approaching each insurer individually, we simplify the process by helping you compare quotes side-by-side. 

Our team of licensed advisors takes the time to understand your business size, employee demographics, budget, and goals. Whether you’re a small restaurant with just two staff members or a growing business with a mixed team of part-time and full-time workers, we help you build the perfect benefits plan that offers real value. Schedule a call with us today!

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Frequently Asked Questions

Are health benefits taxable for restaurant employees in Canada?

In Canada, employees don’t pay taxes on most employer-paid health benefits, including medical, dental, and vision coverage. This means employees can receive valuable coverage without added income tax. However, some types of benefits, like certain wellness stipends or gift cards, might be considered taxable depending on how they are administered. For employers, these health benefit expenses are typically tax-deductible as a business cost. 

Can restaurant workers in Canada access mental health support through employer health plans?

Yes, many extended health insurance plans now include mental health coverage, such as therapy or counselling sessions. Additionally, some employers offer Employee Assistance Programs (EAPs) that provide confidential mental health resources, even outside traditional insurance.

Why don’t all restaurant jobs in Canada include health insurance?

Many restaurants operate on tight profit margins and employ a mix of part-time or seasonal workers, making it challenging to offer traditional group benefits. However, this trend is changing as more restaurant owners realize the impact of benefits on retention and employee well-being.

What health benefits do employees value most in the Canadian restaurant industry?

Restaurant employees in Canada typically value coverage that addresses their day-to-day health and financial needs. Key priorities include prescription drug coverage, dental care, paramedical services (like physiotherapy or chiropractic), and mental health support. Vision care and access to an Employee Assistance Program (EAP) are also appreciated.

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How do insurance brokers help customize small business group insurance plans?

Insurance brokers play a major role in helping small businesses get customized group insurance plans tailored to their specific team. This will include understanding the employee demographic, choosing the right amount of benefits, and even understanding the employer’s team size and budget requirements. 

However, when it comes to investing in custom group health solutions, employers often look for ways to offer comprehensive coverage to their employees while keeping the cost under control. 

The best group insurance brokers in Canada help small businesses cater to the diverse needs of their employees by providing customized insurance solutions. Let us understand this in detail further in the article.

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How do brokers help in tailoring group benefits for small businesses?

Insurance brokers play a key role in helping small businesses get the right group health insurance plan for their employees. They assess the business’s specific needs and budget, offer customization options, such as adding riders for extra coverage, assist with managing the policy, handling paperwork, renewals, and any claims that arise.

Assessing your business needs

The first step in customizing group insurance for small businesses requires a thorough assessment of your business’s needs. Your insurance broker will mostly: 

  • Examine your employee demographics, such as age, family status, etc 
  • Identify the health concerns of your employees and check whether their medications are covered
  • Consider your budget restrictions
  • Assess how custom group benefits align with your business objectives

This assessment allows small business group insurance brokers to create a strategic approach that fits your business’s unique requirements.

Offering tailored plans

Small business insurance brokers compare policy offerings from multiple insurers and recommend the best plans that businesses can choose based on their preferences. These plans may include group health insurance, life insurance, disability insurance, dental plans, vision care, and other specialized benefits. 

The right custom group benefits insurance broker will not simply recommend the cheapest group health insurance plan. Instead, they will help you compare premium costs, coverage levels, and other additional benefits to choose the plan that best suits your needs. 

Know the types of group health insurance plans in Canada (2025) 

Plan purchase and management

Insurance brokers also help in the purchase of group health insurance for small businesses, along with its ongoing management. Once a plan is selected, brokers help in the purchase process as well as the plan’s setup.

They also offer continuous plan management services, which include managing renewals, assisting with claims, and offering ongoing support. 

Add-on services and wellness programs

Another important way to tailor group health insurance for small businesses is by adding extra benefits that improve the standard coverage. Reputable insurance brokers like PolicyAdvisor help small businesses choose multiple riders, such as critical illness insurance or accidental death and dismemberment (AD&D) riders, which are often not included in base plans but are important for the overall well-being of their employees.

Moreover, small business group insurance brokers also help businesses set up wellness programs that focus on keeping employees healthy. These programs not only support employees’ health and satisfaction but can also lead to higher employee retention in the long run.

Learn about the importance of mental health coverage for employees

Managing compliance

With an extensive knowledge of current insurance laws and regulations, brokers also help in managing any compliance-related concerns. 

They ensure that the selected insurance plan complies with Canada’s insurance laws and regulations. Moreover, they also keep the small business owner updated with any changes in the regulations over time. This practice helps in reducing legal complications and penalties arising from non-compliance.

Know the benefits of small business group health plan customization

Which are the best group insurance companies for small businesses?

Many insurance companies offer a broad range of group insurance for small businesses. Here is a list of some group insurance companies that you can choose from.

Insurance company PolicyAdvisor ratings What sets them apart
Sun Life  4.5/5
  • Lumino Health Virtual Care with access to health resources 
  • Pharmacy benefits management 
  • Digital enrolment tool for faster onboarding and updates 
Canada Life  4.5/5
  • Freedom at WorkTM that customizes solutions for small businesses
  • Expats or new to Canada insurance plans that help international employees get the health coverage they need
  • Flexible benefits for retirees or self-employed
Manulife  4.5/5
  • Health Service Navigator for employees 
  • Employee Family Assistance Program (EFAP) provides mental health support 
  • Manulife mobile app for on-the-go access 
Desjardins  4.5/5
  • Health and wellness programs with prevention and intervention services 
  • $5 prescription discounts at Costco pharmacies
  • Health is Cool 360° Platform for health management resources 
Green Shield Canada 4.5/5
  • iBenefits platform for flexible, cost-effective benefits management 
  • Specialty Care Program with clinical support services
  • Claims management assistance for quicker claims 
Blue Cross 5/5
  • Easy claims submission through the Medavie mobile app
  • Gender affirmation benefit coverage 
  • Protection Plus Benefits digital platform for portable coverage 
Equitable Life of Canada 4.5/5
  • Online Plan Member Enrolment (OPME) tool for streamlined onboarding 
  • EZClaim® for secure digital claims submission
  • Range of plan design options (Bronze, Silver, Gold, Platinum) 
Benefits by Design (BBD) 4.5/5
  • Plan Administration Portal to update employee records 
  • Telehealth services for remote medical access
  • Diagnostic Specialist Access Insurance (DSAI) enables faster access to services 
Empire Life  4.5/5
  • OnCallogic for specialized cancer support 
  • Telemedicine by Teledoc Health for 24/7 remote access to medical care
  • Mental Health Navigator for easy access to mental health solutions

Deciding on the best insurance company depends on your business needs and financial goals. With the help of insurance brokers like PolicyAdvisor, you can compare the coverage and pricing of each company and choose the one that best suits your business. 

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What are the advantages of working with an insurance broker?

As a trusted advisor, an insurance broker works on your behalf to find the best custom insurance solutions for your business. They not only offer insurance expertise, claim assistance, but also help you save a lot of time and money. 

Here are some benefits of working with an insurance broker for your small business employee benefits:

  • With a deep knowledge of insurance products, industry trends, and insurance regulatory requirements, insurance brokers help you make an informed decision
  • For small businesses, researching, comparing, and buying group health insurance can also be time-consuming. Insurance brokers like PolicyAdvisor.com make this task easier by comparing employee benefits from 30+ top insurance companies in Canada 
  • An insurance broker can also help you save costs, as you don’t end up buying a heavy premium plan. They understand your financial needs while still aiming to offer comprehensive group benefits coverage
  • Moreover, their familiarity with multiple insurance products and pricing lets insurance brokers quickly identify affordable group insurance for small business, thus helping you save money in the long run
  • Not only with the purchase process, but an insurance broker also helps businesses through the entire claim process, making it less complicated
Control strategies insurance brokers use for small business plans

How to choose the right insurance broker for your small business?

When choosing the right insurance broker, businesses should look for the following aspects:

  • Extensive experience in insurance, preferably employee benefits
  • Verified credentials and licensing 
  • Offers clear, responsive communication 
  • Has a wide network of insurer tie-ups in the market
  • Helps you in claims support and plan management
  • Has a good reputation, reviews, and testimonials

Our licensed insurance advisors at PolicyAdvisor work closely with businesses to understand their specific needs and offer custom group insurance solutions that simplify policy purchase and management.

Need insurance help?

Give us a call at 1-888-601-9980 or book some time with our licensed experts.

Frequently asked questions

What is the role of an insurance broker in the group health insurance claim process?

An insurance broker not just assists with customizing a plan, but they also guide you through the entire claims process, making it simpler and less stressful. From helping fill out claim forms and gathering necessary documents to communicating directly with the insurance company on your behalf, an insurance broker manages it all.

Why should small businesses use insurance brokers for group insurance?

Small businesses should use insurance brokers for group insurance, as brokers make the purchase process easier and faster. They help customize group health insurance plans and take care of the ongoing management, claims, and compliance support. 

What is the difference between insurance brokers and insurance agents?

Insurance brokers work for you. They are not connected with any one insurance company. They compare insurance plans from multiple insurers to find the best coverage for your needs. Thus, they are unbiased and offer honest opinions. 

On the other hand, Insurance agents work for one or more insurance companies. They sell policies offered by the companies they represent, which means the options they offer you are limited. Their goal is to match you with one of their company’s plans, not necessarily the best plan for your business. 

Do small business group insurance brokers offer ongoing service after buying the group plan?

Yes. From helping you choose the best group insurance plan to renewal, to claims support, to ongoing plan management, an insurance broker will handle all of it for you. 

Apart from this, if you have any plan-related questions over time, insurance brokers are available to answer them for you. 

How to choose a small business insurance broker in Canada?

To choose an insurance broker in Canada, make sure they are licensed and have a good reputation. Pick someone who works with multiple insurance companies, compares plans as per your business needs, and helps with claims too. Look for good service, fair fees, and experience of the broker as well. Our experienced and licensed advisors at PolicyAdvisor compare plans with 30+ insurers to help you get the best group health insurance plan at affordable rates.

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Group health insurance for startups in Canada: Employee benefits explained

Group health insurance is crucial for Canadian startups as it helps attract and retain their employees for the long term. Not only this, a group insurance plan also offers comprehensive coverage beyond provincial healthcare, thus providing financial security in times of need. 

Recent data from the Canadian Government shows that 10% to 16% of new startups in Canada hire their first employee within their first year, so startup founders should focus on offering employee benefits from the start.

In this guide, we will explore employee health benefits for startups, how to choose an affordable group health insurance for startups, and the key benefits of offering employee benefits in Canada.

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Why do startups in Canada need group health insurance?

Due to increasing competition for skilled workers and their expectations, group health insurance for startups is crucial to attract and retain employees. Apart from this, having a comprehensive group health insurance in place is also beneficial to get tax advantages for startups. 

Here are some key reasons for startups to invest in a group benefits plan for their team:

Rising employee expectations for health benefits

One of the major reasons to have an employee benefits plan for your startups is the rising expectations of employees. According to the Sanofi Canada Healthcare Survey, 82% of Canadian employees consider health benefits very important when deciding whether to stay with their current company. This makes it evident that employees consider group health insurance essential before joining a company

Talent attraction and retention through group health insurance

Group health insurance for startups not only helps in attracting employees but also in retaining them in your team. Recruiting becomes easier and effective when startups offer comprehensive employee benefits plans. 

Moreover, startups in Canada offering group health benefits report 35% less turnover than those without any plan. Startups health insurance also helps in supporting your employees’ well-being, thus contributing to the overall growth of the company. So, to attract employees and retain them for the long term, especially when you have just started your business, you must get a group benefits plan.

Tax benefits of group health insurance

Group health insurance for startups offers tax advantages for employers. Premiums paid by Canadian businesses are considered tax-deductible business expenses. This means startups in Canada can lower their tax burden by opting for group health insurance for their employees.

Not only this, premiums paid for group health benefits are generally exempt from GST/HST in Canada, reducing the overall tax impact on both parties. GST refers to taxes that apply to most supplies of goods and services made in Canada.

Learn more about group insurance for small businesses

What does a typical group health insurance plan cover?

A standard group health insurance plan in Canada typically includes coverage for prescription drugs, dental and vision care, mental health support, paramedical services like physiotherapy and chiropractic care, and virtual healthcare options. 

These benefits help employees manage everyday health costs and improve overall well-being, making group plans an essential part of a startup’s compensation package.

Group health plans in Canada typically cover the following conditions: 

  • Prescription drugs: A group insurance plan in Canada offers coverage for prescription drugs, helping employees manage their out-of-pocket expenses
  • Dental and vision care: Standard employee benefit plans also cover dental and vision care. These plans include regular check-ups, dental cleanings, basic dental procedures, eye exams, and corrective lens coverage
  • Mental health support: Support for mental health under health insurance coverage in Canada has become important in recent times. Coverage for mental health generally includes counselors, therapists, and psychiatrist services. Employers also offer an Employee and Family Assistance Program (EFAP) for the well-being of employees
  • Paramedical services: Paramedical services include multiple treatments such as physiotherapy, massage, chiropractor services, and acupuncture
  • Virtual care options: Popular particularly after COVID-19, most group insurance plans in Canada offer virtual care services. This includes online appointments for busy employees who struggle to attend in-person appointments

Read more about types of group health insurance plans in Canada

Affordable group health insurance for small businesses and startups in Canada

Many startup founders assume that group health insurance is only for large companies, but that’s a common misconception. In reality, Canadian group health insurance is available for small teams with as few as two employees and can be surprisingly affordable.

Group insurance plans are scalable and flexible, making them ideal for startups looking to provide essential employee benefits. Some providers offer tiered employee insurance plans where the employer covers a basic plan, and employees have the option to pay for additional coverage, such as dental or vision.

You can also customize group health insurance to match your team’s needs and your startup’s budget. With access to over 30 insurance providers, PolicyAdvisor’s licensed advisors help you compare the most affordable health insurance for startups in Canada and choose a plan that works for your business.

How much does group health insurance cost for Canadian startups?

The cost of group health insurance for startup companies in Canada varies based on several key factors, but it doesn’t have to break your budget. With the right provider and plan design, even early-stage startups can offer affordable employee insurance tailored to their team.

Key factors that affect group health insurance costs for startups:

  • Number of employees: Larger teams often receive lower per-person premiums due to risk sharing across a bigger group. However, plans are still accessible for startups with just 2 or 3 employees
  • Level of coverage: Basic health plans are more affordable and cover essential benefits such as prescription drugs and virtual care. Comprehensive plans with dental, vision, mental health, and paramedical coverage will cost more
  • Provider reputation: Leading Canadian insurers may charge slightly higher premiums, but offer added value through faster claims processing, stronger customer support, and better plan flexibility
  • Custom add-ons: Adding optional coverage like life insurance, long-term disability insurance, or Health Spending Accounts (HSAs) can increase premiums, but they also enhance your overall employee value proposition

The cost of group health insurance for startups will vary based on the above-mentioned factors. Typical costs vary between:

  • Basic Plan: $80–$200/month per employee (covers essentials like prescription drugs and virtual care)
  • Standard Plan: $100–$250/month per employee (includes dental and vision)
  • Enhanced Plan: $150–$350/month per employee (comprehensive coverage, e.g., mental health, paramedical services)
Looking for affordable group insurance?

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How to choose the right group insurance plan for your startup?

Choosing the right group health insurance for your startup is a critical decision that can impact both employee satisfaction and business success. To find the best fit for your team, consider these essential steps to guide your selection process:

Step 1: Assess employee needs: Start by understanding what health insurance coverage your employees value the most. Conduct surveys or hold discussions to gauge their needs. Different age groups, life stages, and health requirements may shape the type of coverage they require, so this step ensures your plan aligns with their expectations

Step 2: Compare providers and plans: It’s essential to compare group health insurance plans from multiple Canadian providers. Look beyond just premiums, evaluate the coverage options, additional benefits (like life and disability insurance), and the insurer’s customer service reputation. We recommend scheduling a call with our experienced advisors to receive guidance on comparing group health insurance plans from over 30 top Canadian providers and getting customized quotes for your unique needs

Step 3: Look for digital admin portals: A user-friendly digital admin portal can streamline the management of your group health insurance plan. Many insurance providers offer these online tools for easy enrollment, claims processing, policy renewals, and 24/7 support. A digital portal not only simplifies administrative tasks but also enhances your overall experience as a startup owner

Learn more about the different group health insurance plans for small businesses in Canada

Tax advantages of group health insurance for Canadian startups

Group health insurance offers key tax benefits for Canadian startups. Employer-paid premiums are tax-deductible, reducing taxable income, while employee benefits are non-taxable. Additionally, insurance services are exempt from GST/HST, and some provinces offer tax credits and incentives. 

These advantages can lower your overall tax burden and make your startup more appealing to employees.

  • Tax-deductible premium payments for employers: The premiums paid by employers towards their group health cover are tax-deductible business expenses. This means that startups can record this expense as a business expense in their Profit/Loss account, thus lowering their tax liability.
  • Non-taxable benefits for employees: Unlike salary increases, which are generally subject to income tax, group health benefits are non-taxable for employees. 
  • GST/HST exemptions for insurance services: Moreover, insurance services, including group medical insurance, are also exempt from GST/HST, offering a tax advantage to startups. 
  • Provincial tax credits and incentives available to startups: To further enhance the tax advantage, different provinces in Canada also offer tax credits and incentives to startups. 

All these factors can help you reduce your overall tax burden on group health insurance plans while making your startup more attractive to current and potential employees. To maximize these tax benefits for your startup, schedule a call with an insurance advisor at PolicyAdvisor. Our licensed experts will help you compare tax-saving opportunities and find the best group health plan for your needs.

Read more about employee benefits in Canada
Need insurance help?

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Frequently asked questions

Is group medical insurance for small businesses mandatory in Canada?

No, group health insurance is not legally mandatory for Canadian startups. However, startups can consider covering their employees with comprehensive group benefits for their physical and mental well-being. Moreover, offering group benefits also leads to lower turnover rates and increased employee satisfaction in a company. 

What is the eligibility criteria for group health insurance?

Eligibility for availing group health insurance includes full-time and part-time employees. They typically need to work a minimum of 20-30 hours per week. They must be Canadian citizens, permanent residents, or have valid work permits.

Can employee benefits plans be customized for small businesses?

Yes, group insurance plans for small businesses are highly customizable. Startups in Canada can choose their coverage and plan options, add-ons like mental health or wellness, as well as health spending accounts to customize plans as per their employees’ needs.  

What are the common benefits offered under group health insurance Canada?

Some common benefits offered under group health insurance include health insurance, dental insurance, vision care, life insurance, prescription drugs, mental healthcare, paramedic services, and flexible health spending accounts. 

Do group health insurance plans offer coverage for pre-existing conditions?

Yes, group health insurance in Canada generally covers pre-existing conditions without any waiting period or exclusions. Some common pre-existing conditions include diabetes, asthma, high-blood pressure, arthritis, etc.  Thus, the coverage for such a condition under group health insurance starts from the start of the plan.

What is the minimum group size for a group insurance plan?

To qualify for group health insurance benefits, employers must have a minimum of 3-10 eligible employees in their company. However, if you are a solo-entrepreneur, you can still get employee benefits via Health Spending Accounts, Wellness Spending Accounts, and individual health and dental plans.

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Group health insurance for pastors and churches in Canada: An ultimate guide

Group health insurance for pastors in Canada protects the well-being of clergy serving faith communities. According to research by the CHLIA in 2022, 90% of health insurance policies in Canada were purchased as part of a group benefits plan. 

Churches choose group health insurance to deliver comprehensive coverage to clergy while controlling costs. In this guide, we’ll discuss Canadian group medical insurance for churches and pastors, its benefits, costs, and flexible alternatives.

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Why is group health insurance important for churches and pastors?

Churches offer health insurance for pastors and staff as a part of their employee benefits program to showcase commitment, compassion, and a long-term vision for ministry. Health insurance for pastors helps with fulfilling their unique demands, providing coverage even with varying employment status. 

Providing employee benefits to pastors strengthens staff well-being, boosts morale, and positions the church as a responsible employer in both spiritual and practical terms.

Here are a few reasons why church health insurance fir clergy in Canada is important:

  • Pastors face unique demands: They often work irregular hours, carry emotional burdens, and struggle to find personal time. Accessible physical and mental health care becomes essential
  • Employment status varies: Many pastors operate in a dual capacity—as employees and self-employed ministers, making it difficult to access standard health plans. Churches must find tailored solutions
  • Health security protects ministry continuity: Reliable insurance helps pastors and staff cover medical expenses and maintain overall wellness
  • Strong benefits support recruitment and retention: When churches offer group health benefits, they increase their ability to attract and keep experienced, committed ministry professionals
  • Benefits align with mission and values: Caring for leaders reflects Christian principles of spreading kindness, compassion, and service
Learn more about how employee benefits work in Canada

What are the essential group health insurance coverages for pastors in Canada?

Most church health benefits plans in Canada include core health coverage such as hospital visits, dental care, vision care, prescription drug coverage, etc. These plans also include optional features like chiropractic care, mental health services, disability payout, and accidental death and dismemberment (AD&D) coverage, etc. 

  • Extended health benefits: These plans typically include prescription drug coverage, hospital stays, paramedical services like massage therapy, chiropractic care, and physiotherapy, as well as durable medical equipment
  • Dental care: Churches often provide basic and preventive dental care such as cleanings, exams, fillings, and extractions. Some plans also cover more advanced procedures like crowns or root canals
  • Vision care: Though optional, many health insurance plans for church employees include coverage for eye exams, glasses, or contact lenses, especially helpful for aging clergy
  • Prescription drug coverage: Coverage for medication is critical to managing both chronic and acute conditions. It often falls under extended health care
  • Mental health services: Pastors often carry emotional and spiritual burdens. Plans that offer counseling, therapy, or psychological support are essential to promote mental wellness
  • Short-term and long-term disability: These benefits offer income replacement if a pastor becomes unable to work due to injury or illness. While sometimes optional, they are highly recommended for financial stability
  • Life insurance and accidental death & dismemberment (AD&D): These benefits offer financial protection to a pastor’s family in case of death or serious injury
Read more about the top 10 benefits of group insurance in Canada
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What group employee benefits options do Canadian churches have?

Canadian churches offer group employee benefits through diverse options, including small business group plans, denominational plans, independent custom plans, HRAs, taxable stipends, HSAs, and association-based coverage

1. Group insurance plans

Many denominations and Christian associations offer group health insurance for pastors and families. These group plans often include:

  • Extended health care (prescriptions, vision, paramedical)
  • Dental coverage
  • Life insurance and AD&D
  • Short- and long-term disability coverage

These plans provide comprehensive coverage and simplify administration, especially when the provider manages everything centrally.

2. Denominational benefit plans

Large denominations, such as the United Church of Canada, the Catholic Church, and Presbyterian ministries, often offer standardized health plans for their pastors and lay employees. These benefit programs promote consistency, affordability, and alignment with the church’s organizational structure.

3. Independent group plans

Independent or non-denominational churches can partner with private insurers to create custom group benefit packages. These plans allow flexibility in choosing specific coverages like health, dental, vision, and disability insurance. Most of the mid-sized Christian congregations often find this approach effective for their staffing needs.

4. Health Reimbursement Arrangements (HRAs)

HRAs give churches a flexible and tax-efficient way to support pastors without committing to a full insurance plan. With HRAs, churches reimburse eligible medical expenses and premiums on a tax-free basis. The HRA model works especially well for small congregations with tight budgets.

5. Taxable stipends

When churches cannot offer formal insurance, they may choose to provide a monthly stipend. Pastors can then use this amount to buy individual health insurance. Though this option lacks tax-free benefits, it offers flexibility and respects the autonomy of self-employed pastors.

6. Health Spending Accounts (HSAs)

HSAs allow churches to set aside a fixed amount per employee for eligible medical expenses. They work as a tax-efficient alternative to full insurance and allow staff to manage their care independently. HSAs provide predictability for churches and flexibility for pastors.

7. Association-based coverage

Faith-based associations like the Canadian Council of Christian Charities often make group health coverage accessible to member churches. These plans help smaller churches access affordable benefits by pooling risk across multiple organizations.

Find out about the types of group health insurance plans available in Canada

What is the cost of group health insurance for church employees?

The cost of group health insurance for church employees in Canada varies based on the size of the church, the number of staff members, and the type of plan selected. Larger churches usually pay lower premiums per employee, whereas smaller churches may pay higher per-employee rates due to limited group size and fewer cost-sharing advantages.

Cost of group benefits for church employees in Canada

Church size (by staff) Estimated monthly premium (Per employee) Typical coverage inclusions
Small churches (1–50 employees) $250 – $350 Prescription drugs, extended health care, basic dental, vision care, some paramedical services
Medium churches (51–200 employees) $200 – $300 Broader drug and dental coverage, vision, semi-private/private hospital, EAP, etc
Large churches (201+ employees) $150 – $250 Comprehensive benefits like high drug and dental limits, EAP, critical illness, life insurance, etc

What is the minimum staff requirement for group health insurance plans?

In Canada, most insurance providers require churches to have at least a minimum of 3 to 5 eligible employees to qualify for a group health insurance plan. This group may include pastors, administrative staff, and other full-time or salaried employees within the church.

If your church doesn’t meet this threshold, consider joining a pooled plan through your denomination or a ministry association. You can also explore alternatives like HSAs or taxable stipends to provide health support more flexibly.

What are the tax considerations for churches offering group health benefits?

Churches must consider tax implications when offering group health benefit plans to their employees, especially since most operate as registered charities in Canada. Even with charitable status, they must remain compliant with CRA guidelines regarding employee compensation.

  • Tax treatment of premiums: Group health benefits (including extended health, dental, vision, life, and disability) are usually non-taxable for employees when the church pays the premiums
  • Charitable status impacts: Offering reasonable employee benefits does not affect a church’s charitable status. As long as the group benefits are at par with other industries and strengthen the organization’s religious mission, the CRA considers it appropriate
  • Tax-efficient compensation planning: Churches can combine tax-free group benefits with modest stipends to create well-rounded compensation packages for pastors and other employees
  • CRA documentation requirements: To ensure compliance with the CRA guidelines, churches should have a few mandatory documents:

    • Keep written benefit plan documents
    • Maintain formal employment contracts that describe offered benefits
    • Record premium payments accurately in the financial books
    • Issue T4 slips that reflect any taxable allowances or benefits
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How can churches manage rising group health insurance premiums?

Churches can respond to rising premiums in several smart ways. By adjusting coverage levels (for example, choosing basic dental over full), increasing deductibles, or sharing costs with employees, they can control expenses.

They can also consider hybrid plans—combining a basic core policy with a Health Spending Account to give staff extra flexibility. Regularly reviewing plan usage and claims trends with your provider helps identify cost-saving opportunities. Working with an experienced benefits broker can help you negotiate better terms and find church-specific plans.

Find out how small businesses can customize their group plans

Can retired pastors stay on the church’s group employee benefits plan?

Some group health insurance plans allow retired pastors to stay covered through continuation or retiree plans. However, eligibility depends on the insurer’s rules and how the original policy was set up.

If continuation coverage is unavailable, churches can support retired pastors by offering a Health Spending Account or a taxable stipend. Planning ahead for retirement health care ensures pastors receive long-term support and honors their years of faithful service.

What are the alternative employee benefit options for churches in Canada?

Apart from offering traditional health insurance, Canadian churches can explore alternative benefits to support the well-being of pastors and staff. These options include wellness programs, EAPs, sabbatical policies, and retirement planning benefits. Offering such group benefits can enhance overall care, boost morale, and align with the church’s mission and resources.

  • Health care sharing ministries: Though limited in Canada, some faith-based groups pool resources to cover members’ medical costs, an alternative to insurance for smaller congregations
  • Wellness programs: Initiatives promoting physical, mental, and spiritual health (e.g., gym subsidies, stress management workshops) encourage holistic well-being
  • Employee Assistance Programs (EAPs): EAPs offer confidential support for mental health, family, and financial issues, valuable for emotionally demanding ministry roles
  • Sabbatical policies: Providing structured time off for rest and renewal can serve as a powerful health and retention benefit for clergy 
  • Retirement planning integration: Including RRSP matching or pension contributions as part of a broader benefits strategy supports long-term financial health for pastors

How to choose the right group health insurance for church employees?

Selecting the best group health insurance for pastors involves balancing the unique needs of your church with practical considerations like budget, coverage, and administration. Whether you’re a small independent church or part of a larger denomination, finding the right plan requires thoughtful comparison and planning.

  • Size of congregation and staff: Larger churches may benefit from full group plans, while smaller ones might opt for Health Spending Accounts or stipends
  • Budget and affordability: Evaluate what your church can realistically afford in monthly premiums and out-of-pocket costs
  • Denominational requirements or options: Some denominations offer or require participation in group benefit programs, often at reduced rates
  • Flexibility for part-time or bi-vocational pastors: Ensure the plan accommodates pastors with irregular employment status or multiple roles
  • Ease of administration and provider reputation: Choose a provider known for responsive service, simple claims processes, and reliable coverage options
Learn more about mandatory group benefits in Canada

How to get the best group health insurance quotes for pastors in Canada?

To get the best group health insurance quotes for pastors in Canada, churches should consider working with insurance experts who can offer customised solutions for their diverse group health insurance needs!

PolicyAdvisor partners with over 30+ top insurers in Canada to help churches create health plans based on their unique needs. Our advisors can guide churches and clergymen in choosing the right mix of coverage that can help with their overall physical and mental health requirements. 

With PolicyAdvisor, churches can easily compare quotes, control costs, and build strong, well-rounded health protection for their team. Schedule a call with us today to know more!

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Frequently Asked Questions

What happens to a pastor’s benefits if they move to a new church?

If the new church uses the same group insurance provider or denominational plan, benefits may transfer smoothly. Otherwise, coverage typically ends upon leaving, and the pastor may need to requalify with the new employer. Some plans offer conversion to individual coverage or continuation options for a limited time. 

Can churches reimburse pastors for personal health insurance plans?

Yes, churches can reimburse pastors for individual health insurance premiums using Health Reimbursement Arrangements (HRAs) or taxable stipends. HRAs are more tax-efficient, but must be set up correctly to remain CRA-compliant. 

Taxable stipends are easier to administer but are considered income. These options are especially useful for small churches unable to offer traditional group insurance.

Can churches join together to form a group health insurance plan?

Yes, small churches can collaborate, especially within the same denomination or ministry association, to form a multi-employer group plan. This approach helps meet minimum participant requirements, lowers premiums through pooled risk, and increases access to better coverage. 

Churches should consult a benefits broker or denominational office to explore available collective options and ensure proper legal and administrative coordination.

Are mental health services included in church health plans?

Most group health insurance for pastors includes some level of mental health coverage, such as counselling, therapy, or psychologist visits, under extended health benefits. Coverage limits vary by provider. 

Churches can also add Employee Assistance Programs (EAPs) to support emotional and spiritual well-being. Given the unique pressures of ministry work, mental health benefits are a vital part of a church’s support system.

Do churches have to offer health insurance by law in Canada?

No, there is no legal requirement for Canadian churches (or most employers) to offer health insurance. However, providing benefits helps attract and retain quality staff, supports well-being, and demonstrates pastoral care. Many churches voluntarily offer coverage through denominational plans or private insurers as part of a broader compensation strategy, even though it’s not mandatory under Canadian employment law.

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Weight loss medications covered by group health insurance in Canada (2025 Guide)

Obesity affects more than 26% of Canadian adults and has been recognized as a chronic disease by the Canadian Medical Association since 2015. Its impact goes far beyond physical health—Canada loses an estimated $21.7 billion annually in indirect costs such as reduced workforce participation and lost productivity. 

As the demand for effective weight loss treatments grows, weight loss medications like Ozempic and Wegovy have become increasingly sought after. However, access remains uneven across the country due to varying levels of coverage under health insurance, group insurance plans, and provincial drug programs

In this article, we’ll take you through the medications currently available in Canada and provide a comprehensive breakdown of how they’re covered under public and private plans.

Which weight loss medications are approved and eligible for insurance coverage in Canada?

Health Canada has approved several weight loss medications, but only a few are eligible for group insurance coverage, and even then, coverage depends on the insurer and the plan. Covered or potentially covered medications include Wegovy, Contrave, Ozempic (for diabetes), Mounjaro (for diabetes), Rybelsus (for diabetes), Saxenda, and Orlistat. 

These are the main medications currently approved and potentially eligible for coverage:

  • Wegovy (semaglutide 2.4mg): Approved by Health Canada for chronic weight management. Coverage is emerging, primarily in group plans, and usually requires prior authorization or special criteria
  • Contrave (naltrexone/bupropion): Approved for weight loss. May be covered under some group health plans, but typically needs prior authorization
  • Ozempic (semaglutide 1mg): Approved for type 2 diabetes. Most insurers cover it only for diabetes, not for weight loss. Exceptions may be made for weight-related comorbidities under strict criteria.
  • Mounjaro (tirzepatide): Approved for diabetes, not weight loss. Covered for diabetes under prior authorization. Off-label use for weight loss is not typically reimbursed
  • Rybelsus (oral semaglutide): Approved for diabetes. Coverage is limited to diabetic use only
  • Saxenda (liraglutide): Approved for weight loss but has limited coverage availability. May be included in some group plans under special conditions
  • Orlistat: Approved for weight loss and available over the counter, but not typically covered by insurance due to lower cost and less clinical effectiveness
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Does group health insurance in Canada cover weight loss drugs? 

Yes, weight loss medications are covered through group insurance plans. Coverage is uncommon in personal health insurance plans, which tend to exclude weight loss medications entirely. Even when group health plans offer access to these drugs, they typically require:

  • Prior authorization: A pre-approval process where the insurer reviews medical information before agreeing to cover a medication
  • Proof of medical necessity: Documentation from a healthcare provider showing that a specific treatment is essential for the patient’s health
  • BMI thresholds or comorbidity documentation: Medical evidence showing a patient has a high BMI (typically 30+) or related health conditions like diabetes or hypertension
  • Step therapy: A cost-control measure requiring patients to try lower-cost or first-line treatments before approving newer or more expensive drugs

Coverage is more likely if the medication is approved for diabetes management, as with Ozempic or Mounjaro. But newer drugs like Wegovy, approved specifically for weight loss, are slowly being added to select formularies.

Learn more about Ozempic coverage under group health insurance in Canada

What is required for prior authorization of weight loss medications?

Prior authorization for weight loss medications in Canada usually requires a BMI over 30 (or over 27 with comorbidities), documented failure of lifestyle changes, and a physician’s clinical justification. The process varies by insurer and drug but is commonly required to access GLP-1 medications.

Are weight loss medications covered by provincial health coverage plans in Canada?

As of 2025, provincial health plans do not cover weight loss medications like Wegovy or Contrave. GLP-1 medications such as Ozempic or Mounjaro are generally covered only for type 2 diabetes, and even then, coverage requires step therapy and prior authorization. However, no public plan currently covers GLP-1s for obesity treatment.

  • Ontario (ODB): Covers Ozempic for diabetes only
  • Quebec (RAMQ): Covers Ozempic for diabetes, excludes Wegovy
  • Alberta (AHCIP): Requires special authorization for diabetes drugs
  • British Columbia/BC (PharmaCare): Covers Ozempic for type 2 diabetes post-metformin
  • Atlantic provinces: Coverage is limited and typically excludes weight loss drugs

Which Canadian insurance companies cover weight loss medications?

Coverage for weight loss medications in Canada is mostly available through group health plans, not personal plans. Whether a drug like Wegovy, Ozempic, or Contrave is covered depends on the insurer, plan design, and approval process, such as prior authorization. Here’s how top Canadian insurers handle this:

  • Manulife: Some group benefit plans may cover Wegovy with prior authorization. Ozempic is generally only covered for diabetes, not weight loss
  • Canada Life: Group plans can be tailored to include weight loss drugs. Coverage usually requires prior authorization and proof of medical necessity. As of Nov. 27, 2023, Ozempic and Rybelsus will be added to Canada Life’s prior authorization drug list and will only be eligible for coverage when used to treat diabetes. 
  • Blue Cross (including Medavie Blue Cross): Coverage depends on the employer’s choices. Wegovy may be included if the sponsor opts in. Ozempic is typically covered for diabetes under StepTherapy, plans so that first-line treatments for diabetes have preferential coverage, and Ozempic and similar drugs are second-line and not for weight loss
  • GreenShield: Has started including weight loss medications in standard group plans, but only with strict prior authorization and clinical guidelines
  • Sun Life: Offers optional coverage for GLP-1 medications such as Ozempic, primarily for diabetes. Coverage for weight loss drugs like Wegovy may be available in customized group plans with prior authorization and plan sponsor approval
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Frequently Asked Questions

Can I claim weight loss medications through my Health Spending Account (HSA)?

Yes, weight loss medications can often be claimed through an HSA in Canada if they are prescribed by a physician and classified as medically necessary. However, the claim must meet CRA eligibility guidelines, and over-the-counter purchases without a prescription are not reimbursable.

What are compounded GLP-1 medications and are they covered under insurance plans in Canada?

In Canada, compounded GLP-1 drugs like semaglutide are only permitted when there is a genuine shortage of the commercially available, Health Canada-approved product, and must be made from authorized ingredients for an individual patient’s medical need-not for economic reasons or convenience. Currently, the supply of approved GLP-1 drugs like Ozempic and Wegovy has stabilized and is widely available, so compounding is generally not allowed. Only Health Canada-approved GLP-1 products are guaranteed for safety and effectiveness and need to be listed on the insurer’s formulary to be eligible for coverage.

Most Canadian insurance providers do not cover compounded GLP-1 medications, such as compounded semaglutide or tirzepatide. These products are not approved by Health Canada, and insurers typically require that a drug be Health Canada-approved and listed on the insurer’s formulary to be eligible for coverage.

Can my employer choose to exclude weight loss medications from our group plan?

Yes, group insurance plans in Canada are highly customizable. Employers can choose to include or exclude specific drug classes, such as GLP-1 medications used for weight loss. Coverage for these medications depends entirely on the plan design and what the employer is willing to fund.

Do insurance plans cover both the medication and associated obesity treatments like counselling?

Some group insurance plans offer extended health benefits that may include obesity counselling, nutritionist services, and behavioural therapy alongside prescription medication coverage. However, these services are typically capped or require coordination with a wellness or employee assistance program (EAP). Coverage varies by insurer and plan sponsor.

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Top 10 benefits of group insurance for small businesses in Canada

Small business owners in Canada are constantly looking for ways to attract and retain top talent, reduce operational costs, and improve employee satisfaction. Did you know that 75% of Canadian employees state that health benefits impact their job satisfaction? One of the most effective ways to achieve these goals is by offering group benefits.

While many small businesses hesitate due to cost concerns or lack of knowledge, the benefits of group insurance far outweigh the challenges. In this blog, we’ll take you through the top 10 benefits of group insurance for small businesses in Canada.

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What are the benefits of offering group insurance for Canadian small businesses?

A group insurance plan provides numerous advantages that make it an ideal choice for small business owners. From affordable small business group health insurance to valuable group life insurance benefits, these plans deliver comprehensive coverage options that support both employers and employees.

Here are the key benefits of offering group insurance for small businesses in Canada:

  • Cost-effective healthcare coverage
  • Attracts and retains top talent
  • Tax advantages for employers
  • Improved employee health and productivity
  • Customizable coverage options
  • Group life insurance benefits
  • Disability coverage and income protection
  • Administrative simplicity
  • Access to additional wellness programs
  • Scalability as your business grows
Learn more about group insurance for small businesses

Group insurance plans provide cost-effective healthcare coverage that helps small businesses manage expenses while offering quality benefits

One of the most significant advantages of group insurance for small businesses is the affordability of health coverage. By pooling employees under a small business group health insurance plan, insurers spread the risk across a broader group, leading to lower premiums compared to individual insurance.  

Additionally, small business health insurance plans often come with volume discounts, making quality coverage accessible even for companies with tight margins. This enables small businesses to compete with larger firms when offering attractive benefits packages.

Offering group insurance for small business helps attract and retain top talent by demonstrating your commitment to employee wellbeing

In today’s job market, prospective employees evaluate more than just salaries, they consider the full range of benefits offered. The availability of comprehensive workplace benefits employers provide clearly communicates that your company prioritizes employee wellbeing, making your small business more appealing to qualified candidates.

Moreover, comprehensive group healthcare plans greatly enhance employee retention. When staff and their families have access to reliable health coverage, they are less inclined to seek employment elsewhere. This reduces turnover costs and helps preserve valuable institutional knowledge.

Employers can take advantage of valuable tax benefits when they provide group insurance plans to their workforce

One of the key group insurance benefits for Canadian small businesses is the favourable tax treatment. Employer-paid premiums for group health insurance plans are generally tax-deductible as business expenses, providing financial relief while enabling businesses to offer valuable benefits.

The Canadian tax system encourages investment in employee health by allowing these deductions, making group insurance plans an attractive choice for budget-conscious small business owners.

Access to group insurance improves employee health and productivity by encouraging preventive care and timely medical treatment

Offering medical insurance for small businesses is more than a perk; it’s a strategic investment in productivity. When employees can access preventive care and timely treatment through group healthcare plans, they tend to take fewer sick days and perform better overall.

Such plans promote regular health check-ups and early intervention, helping identify potential issues before they escalate. This proactive approach reduces absenteeism and minimizes productivity losses.

Read more about employee benefits in Canada

Employee benefit packages offer customizable coverage options tailored to meet the specific needs of your workforce and budget

Modern group insurance plans are highly flexible, enabling small businesses to tailor coverage according to workforce needs and budget. Employers can often choose from a variety of benefits and dollar amount accessible, including:

  • Extended health coverage
  • Dental care
  • Vision care
  • Prescription drug coverage
  • Paramedical services (massage therapist, chiropractor, acupuncturist etc.)
  • Mental health support

This flexibility ensures you only pay for the benefits that matter most to your employees, maximizing the value of your small business group health insurance.

Explore different group health insurance plans for small businesses in Canada
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Group life insurance benefits provide essential financial protection for employees’ families in case of unforeseen events

In addition to health coverage, group life insurance benefits offer essential financial protection for employees’ families in the event of death. Including life insurance in your benefits package demonstrates a commitment to employees’ long-term security.

Typically, these policies provide:

  • Death benefits to designated beneficiaries
  • Optional additional coverage through voluntary employee contributions

Continuation options if employees leave the company

Disability coverage within group insurance plans ensures income protection for employees during periods of illness or injury

Many comprehensive group insurance plans also include short-term and long-term disability coverage. This protects employees who are temporarily unable to work due to illness or injury by providing continued income during difficult times.

For small business owners, disability coverage supports employee welfare and helps maintain business continuity by reducing disruptions caused by absenteeism.

Group insurance simplifies administration by consolidating coverage under a single policy, reducing paperwork and management time

Managing multiple individual insurance policies can be a major administrative burden. One of the top advantages of workplace benefits in Canada is simplified administration through a single master policy covering all eligible employees.

Insurers typically handle much of the administrative workload, including:

  • Enrollment processing
  • Claims management
  • Regulatory compliance
  • Policy updates

This allows small business owners and HR staff to focus more on core business priorities rather than paperwork.

Many group healthcare plans include access to additional wellness programs that support employees’ mental and physical health

Many group healthcare plans now come with complementary wellness programs designed to promote healthier employee lifestyles. These initiatives may include:

  • Employee assistance programs (EAPs) for mental health support
  • Health risk assessments
  • Smoking cessation programs
  • Fitness incentives
  • Nutritional counseling

Such programs not only improve employee wellbeing but can also help lower overall healthcare costs in the long run.

Group insurance plans are scalable, allowing your coverage to grow seamlessly as your business expands and your workforce changes

A well-designed group insurance plan grows with your business. Whether you’re hiring new staff or expanding locations, group insurance benefits can easily scale without the need for a complete overhaul of your benefits strategy.

This flexibility provides peace of mind, knowing your small business health insurance can adapt to changing workforce demographics and business needs. Your insurance provider will help adjust coverage and administration as your company evolves.

Know more about different savings accounts in Canada

How to choose the right group insurance plan for your small business?

Choosing the right group insurance plan is a crucial decision for small businesses in Canada. With various options available, it’s important to understand your company’s unique needs, budget, and employee preferences to select a plan that offers the best coverage and value. 

Consider these key steps to select the best group insurance plan for your small business:

  • Understand your business and employee needs: Assess employee demographics, preferences, and coverage requirements
  • Set a budget: Balance premium costs with coverage quality and consider tax benefits
  • Evaluate coverage options: Choose plans with essential services, a broad provider network, and extra benefits like wellness programs
  • Check eligibility and compliance: Ensure your business meets size and enrollment criteria
  • Compare plans: Review multiple providers for coverage, costs, and customer service
  • Understand renewals rates: Most plans operate on a cyclical basis and rates are reviewed at the end term based on plan usage
  • Speak with a licensed advisor: Consult our insurance advisors to find the most suitable and affordable plan
Want to know more about group health coverage?

Give us a call at 1-888-601-9980 or book some time with our licensed experts.

Frequently asked questions

How many employees do you need to qualify for a group insurance plan in Canada?

Most insurers require a minimum of 2 to 5 full-time employees to qualify for a group insurance plan. Some providers may allow coverage for owner-operators or family-run businesses, but requirements vary. A licensed advisor can help determine eligibility based on your workforce size and structure.

Are part-time or contract employees eligible for group benefits?

Eligibility for part-time or contract employees depends on the plan design and insurer’s policy. While full-time employees are typically included, employers may choose to extend certain benefits to part-time or temporary workers to enhance inclusivity and support.

Can small businesses customize group plans based on employee roles or seniority?

Yes, insurers often allow tiered employee benefits structures. Employers can tailor plans by employee class (e.g., executives, management, and staff) to offer different levels of coverage or additional benefits, while still maintaining fairness and regulatory compliance.

Are premiums for group insurance plans fixed or do they change over time?

Premiums are typically reviewed annually and may change based on group claims experience, employee demographics, and inflation in healthcare costs. Some insurers offer rate guarantees for the first 1–2 years to provide cost stability.

Read more about the cost of group health insurance

Can group insurance for small business help improve employee morale and company culture?

Absolutely. Providing employee benefits shows a genuine investment in employee wellbeing, which can foster loyalty, trust, and a stronger workplace culture. Employees are more likely to feel valued and engaged when their health and financial security are supported.

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