A Complete Guide to Group Life Insurance in Canada

An employee benefits package is incomplete without group life insurance. After all, nearly 2 in 5 Canadians rely solely on their employer for life insurance coverage. Offering life insurance coverage as part of employee benefits can influence a potential job seeker’s decision when they choose to work with an organization. 

So, what is group life insurance, how does it work, and what can it be used for? Let’s find out. 

What is group life insurance?

A group life insurance is  a contract or an agreement that promises to pay an employee’s dependents a tax-free lump sum amount in the event of their demise. It is offered by an employer to a “group” of people—the employees. A group life insurance policy helps soften the financial impact that comes with losing an earning member of a family. 

While individual life insurance policies are owned by one person, a group life policy is owned by the employer. Think of it as an umbrella that one person is holding but is protecting several people from the pouring rain. 

Most group life benefits are offered as term life insurance that is renewed annually by the insurance provider. Unlike whole life insurance which covers an individual for their entire lifespan, term life policies provide coverage for a certain “term” or fixed period of time. 

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How does group life insurance work?

Group life insurance gives a tax-free lump sum payment to an employee’s family or beneficiaries upon their death. In most cases, employers pay the premium for group life benefits or split the cost with their employees. 

Some insurance providers also let employees buy additional coverage for their dependents. In this case, the payout happens when the dependent passes away. It is typically a flat amount like $5,000 for a child or $10,000 for a spouse and is often used to cover funeral expenses. 

Benefits of providing group life insurance to employees

There are several benefits to providing group life insurance to employees, including:

  • Increased employee retention: Employee benefits like life insurance encourage employees to stay with the company long-term, as they would lose this coverage if they left
  • Increased employee satisfaction: Offering financial security for employees’ families shows a commitment to their well-being, boosting morale and overall job satisfaction
  • Reduced business risks: Group coverage protects companies from large, unexpected expenses by replacing potential lump-sum payments to bereaved families with manageable monthly premiums. This helps maintain financial stability while ensuring employees’ families receive proper support

Group vs individual life insurance

Group life benefits offered to the employees of an organization are less expensive than an individual life insurance policy. Apart from the pricing, there are several other differences between group and individual life insurance policies. Some of these are:

  • Flexibility: Group life insurance policies are usually a standard plan for all the employees of an organization. They do not take into consideration the unique financial requirements of every single employee. Individual plans on the other hand, offer flexibility to an individual who can choose the coverage option based on their economic and personal circumstances. 
  • Underwriting: Most group life insurance policies do not require any underwriting and the plan is offered to all employees regardless of their age, gender, economic background, etc. Individual health policies require medical underwriting which can often be a tedious process, especially for those with pre-existing medical conditions. 
  • Coverage: Since individual life insurance plans are customized for an individual’s needs, they offer ideal coverage for the insured, as opposed to group life insurance plans that are standard for all employees. 

Read more about individual life insurance

Group term life insurance

Group life insurance plans are usually offered as term insurance that covers the employees of an organization for a set period of time. It is a type of temporary life insurance which needs to be renewed, typically on a yearly basis. Group term life insurance policies pay a tax-free lump sum amount to the insured’s beneficiaries in the event of their demise. 

Insurers usually give employees the option to purchase additional cover for their families. If an employee were to leave their employer, they often have the option to convert the group term life plan into an individual policy. The cost for this however, will go up.  

Individual term life insurance

Similar to a group term life policy, individual term life plans pay a lump sum benefit to an individual’s beneficiaries if they die within the term policy. Individual term life plans can be for 10, 15, 20, 25, 30 years up to the age of 65. 

Some life insurance companies in Canada (such as RBC Life Insurance or Industrial Alliance Life Insurance) allow you to pick your own term (6, 8, 11 years, etc.).

What can group or individual term life insurance payouts be used for?

With term insurance, an individual or employee (depending on the type of policy), can choose to match time-bound debts or liabilities. This could include financial obligations like:

  • Mortgage
  • Any outstanding debt 
  • Coverage for children’s education
  • Living expenses for loved ones so they maintain the same standard of living

Group whole life insurance

Group whole life insurance provides coverage for an employee’s entire life. It is a type of permanent life insurance that has higher premiums and death benefits. Group whole life insurance is often offered at no cost to the employees. In cases where the cost is split or the employee chooses to add dependents or an advanced plan, the premium is deducted from their paycheck. 

Most group whole life insurance plans are offered to employees after they have completed a probationary period or any other defined duration before they get coverage. Like with any other insurance policy, group whole life requires employees to designate at least one beneficiary. Employees have the option to change beneficiaries if they want to. 

Unlike individual whole life insurance, group whole life benefits do not have a cash value component. 

Individual whole life insurance

Individual whole life insurance provides coverage from the day an individual purchases a policy till their demise. It is a permanent life insurance policy that doesn’t expire as long as the premiums are paid on time. 

Most whole life policies come with a cash value component. Part of the premium that an individual pays is invested and generates a tax-deferred cash value that grows over time. It can then be accessed in many ways such as:

  • Withdrawing the cash value
  • Borrowing the cash value
  • Using it as loan collateral
  • Cancelling the policy and cashing out the value

Key features of group life insurance

Group life benefits vary from one organization to another and all the decisions are made by the policy owner—the employer. Some of the key features of a group life insurance plan are:

  • Benefits schedule
  • Non-Evidence Maximum (NEM)
  • Maximum benefit
  • Premium
  • Waiver of premium
  • Coverage amount 
  • Eligibility 
  • Portability 
  • Tax benefits 
  • Benefit reduction and termination

Benefits schedule

A benefits schedule outlines the coverage an employee gets under a group life policy. This is usually based on the employee’s salary or a flat amount. Most insurers use two methods to calculate a group life insurance benefits schedule—earnings based schedule and flat benefit schedule.

  • Earnings-based schedule: The coverage amount is based on the employees’ salary and may include commissions and bonuses. If the schedule is 2x of salary, an employee earning $100,000 will have coverage of $200,000
  • Flat benefit schedule: This is a category or class-based coverage where members of a class have the same level of coverage, typically ranging from $25,000 to $500,000. Different categories of group members will get different benefits. For example, a senior vice president could get a benefit schedule of 2x their salary while a junior employee could get a flat benefit of $50,000

Non-Evidence Maximum (NEM)

Non-Evidence Maximum is the minimum coverage for which all eligible employees are enrolled without having to provide proof of insurability. An employee’s medical history and health condition is usually considered as proof of insurability. 

NEM gives employees a minimum level of coverage through their group life insurance plan. It is particularly important for those group members who might not qualify for individual life insurance due to health issues. 

The NEM amount can vary based on the size of the group and the perceived risk associated with it. Larger groups and those considered to be low risk may have higher NEMs that provide greater coverage without any underwriting. 

Maximum benefit

The maximum benefit is the highest amount of coverage that employees can get under a group life insurance plan. This upper limit is pre-defined in the policy document and it does not depend on the type of benefits schedule. 

Maximum benefit applies uniformly to all group members. It adds a certain degree of fairness and consistency to a group life insurance plan by ensuring that no individual exceeds the maximum coverage. 

The maximum benefit varies based on three factors:

  1. Insurance provider’s guidelines 
  2. Employer’s plan design or structure 
  3. Regulatory guidelines 

It is typically set to balance the need for adequate coverage with the insurer’s risk exposure. 

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Premium 

Group term life insurance policies are generally less expensive for younger employees. The premium rates increase with an individual’s age. The policy document that an insurer provides will typically include details of the bands at which the cost of the premium will increase. 

Employers can choose to offer group life insurance benefits at no cost. If employees wish to buy additional coverage or add their dependents, they may have to pay more. 

Waiver of premium

With group life benefits there may be an option to waiver the premium for employees who become permanently or totally disabled while they are insured. Employees need to be under the care of a doctor and should be disabled for a period of at least six months to get group life benefits without a premium. 

Waiver of group life insurance premium is usually available to employees under the age of 65.

Coverage amount

The coverage amount in a group life insurance policy can be different for people at various levels of the organizational hierarchy. So a senior executive or manager will typically have a higher coverage amount as compared to a junior member of the organization.

Eligibility

All employees are typically enrolled in a group life insurance plan provided they meet certain eligibility criteria that can include: 

  • The number of hours they work per week 
  • The duration of their employment

A group plan does not require the employees to go through any underwriting—the risk-assessment process that insurers use for individual policies. All eligible employees, regardless of their age, gender, health, etc. are covered. 

Portability

As we previously mentioned, group life benefits are owned by the employer. This means that the coverage an employee gets will end with their employment. If an employee resigns or their employment is terminated by the employer, they will lose their group life insurance coverage. 

There are some insurers who give employees the option to convert their group life benefits into a whole or permanent life insurance policy. However, the premium for these can be high and they will also require underwriting and medical evaluation and evidence. 

Tax implications

The premiums for group life benefits that are paid by the employer are taxable to the employee. An employee will have to pay taxes on the value of the premium because it is seen as additional income. 

However, the premiums that an employee pays are not a taxable benefit. Since the employee is using their own money to pay for the premium, they don’t have to pay any tax on that amount.

Benefit reduction and termination

When an employee reaches the age of 65, their group life benefits will be reduced. So, if an employee had $100,000 coverage, it will be reduced to about 50% to $50,000 once they reach the age of 65. Some insurers also reduce the coverage to a predefined flat rate that varies from one plan to another. 

The reduced coverage typically continues till an employee reaches the age of 70 or retires, whichever comes first.

Common exclusions in group life insurance policies

Most group life insurance providers will not pay death benefits when death is caused by:

  • Intentional self-harm, regardless of mental state or capacity to understand the consequences
  • Viral or bacterial infections, except for pyogenic infections caused by injury
  • Any form of illness or mental or physical infirmity
  • Medical or surgical treatment, except for surgical reattachment procedures
  • War, insurrection, or voluntary participation in riots
  • Service in the armed forces of any country
  • Aviation incidents: Death during air travel when:
    • Serving as a crew member
    • Flying in employer-owned or leased aircraft
    • Flying in aircraft with flight restrictions
    • Flying with an uncertified pilot

What can group life insurance be used for? 

The tax-free payout from group life benefits can be used by the beneficiaries to:

  • Cover everyday expenses (groceries, bills, rent, etc.)
  • Pay off existing debt (mortgage, loans, credit card bills, etc.)
  • Fund their children’s education
  • Pay for funeral arrangements
  • Make a donation to a charity in the deceased’s name 
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Pros and cons of group life insurance

While group life insurance policies are an important part of an employee benefits package, they do come with their own set of pros and cons.

Group life insurance pros for employers

  • Affordable coverage for employees and their families: Offering group life insurance is a cost-effective way for employers to provide financial protection for their employees and their families
  • Recruitment and retention tool: Group life insurance can be a valuable benefit that attracts and retains top talent, demonstrating a commitment to employee well-being
  • Tax advantages: Employers receive tax benefits for offering group life insurance and can write these off as business expenses

Group life insurance cons for employers

  • Limited customization: Group life insurance plans may not meet all employees’ needs, potentially leading to dissatisfaction among some staff
  • Cost management: While generally affordable, the cost of providing group life insurance can increase with the size of the workforce or as the demographics of the employee population change

Group life insurance pros for employees

  • Affordable coverage: Employees typically receive life insurance coverage at little or no cost, offering financial protection without a significant financial burden
  • Peace of mind: Having life insurance through work provides employees with a sense of security, knowing their families will have financial support in case of an unexpected event
  • Convenience: Enrollment in a group plan is often automatic or requires minimal effort, making it an easy way for employees to obtain life insurance coverage

Group life insurance cons for employees

  • Limited coverage: Group life insurance may not provide enough coverage for individual needs, requiring employees to seek additional policies
  • Coverage linked to employment: If an employee leaves the company, their coverage may be reduced or terminated, leaving them without life insurance at a critical time
  • Lack of customization: Employees may find that the one-size-fits-all approach of group life insurance doesn’t align with their personal financial goals or family needs
Pros and cons of group life insurance

Adding supplemental life insurance to your group policy

Adding supplemental life insurance to your group policy can provide the additional coverage needed to ensure comprehensive financial security. Basic group life insurance might not always meet all your personal or family protection needs.

By opting for supplemental coverage, you can tailor your policy to better align with your specific circumstances, offering enhanced peace of mind for you and your loved ones.

Supplemental life insurance is particularly beneficial for employees who need higher coverage limits due to significant financial responsibilities or dependents relying on their income.

It’s also ideal for those who wish to extend coverage to family members, such as a spouse or children, providing the flexibility to meet specific needs and ensuring that your loved ones are well-protected in unforeseen circumstances.

Group life insurance and switching jobs

Understanding how your group life insurance policy behaves when you switch jobs is crucial for maintaining continuous coverage. Here’s what you need to know:

  • Portability of coverage: One of the advantages of group life insurance is that it may be portable, allowing you to continue your coverage even if you change jobs. This means you won’t have to undergo a new underwriting process or face potential gaps in coverage
  • Premium payments after leaving: If you decide to continue your supplemental life insurance after leaving your employer, you may be responsible for paying the full premium. This transition ensures that you can maintain your coverage without interruption, though you’ll need to handle the payments directly
  • Coverage termination: Typically, your group life insurance coverage will end when your employment with the company is terminated or if the policy is canceled. It’s important to review your policy’s specifics and plan for alternative coverage options if you’re considering a job change
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Frequently asked questions

Are dependents covered under group life insurance policies?

Employees have the option to add their dependents to a group life plan. This typically requires employees to pay an additional premium out of their own pocket.

Is group life insurance enough?

While group life plans are an excellent employee benefit their premiums are inexpensive and the death benefit is also lower. Generally, the death benefit is paid as a fixed amount that can be between $20,000-$50,000 or it can be based on an employee’s salary (1x or 2x their annual compensation). This amount might not always be enough for the beneficiaries. 

Is group life insurance taxable in Canada?

Group life insurance premiums that are paid by an employer are a taxable benefit for the employee. Additional premiums for dependents that are paid by the employees are not a taxable benefit for them. 

Who is the beneficiary of group life insurance?

Employees can add their family members as beneficiaries to a group life policy. The tax-free lump sum benefit will go to these predefined beneficiaries as per the policy document. 

Does group life insurance pay for suicidal death?

Different insurers can have different clauses when it comes to suicidal death. Some insurers may cover these from the day the policy comes into effect. Others might have a waiting period of a few months or a year before suicidal death is covered. 

Note: If you, or someone you know, need help, please reach out to the Canadian Association of Suicide Prevention on 9-8-8.

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Employee Benefits in Canada (2025) : The Ultimate Guide

In the fast-paced and high pressure business world, companies use employee benefits to nurture their employees and ensure their well-being. 

This guide covers all you need to know about employee benefits (also known as group benefits and group health insurance). We’ve explained what they are, their types, structures and compliances, and how to build an employee benefits package. 

What are employee benefits?

Employee benefits are services and perks offered to employees over and above their salaries and wages. Employee benefits plans typically include a suite of benefits such as paid time off (PTO), health and dental insurance, disability and critical illness insurance, retirement benefits, and more.

Certain benefits such as pension plans and employment insurance are mandatory by law to ensure a basic level of financial security and protection for employees. Other benefits are voluntary and are offered at  the employer’s discretion to attract and retain talent, boost morale and differentiate themselves in the competitive job market. 

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Why are employee benefits important?

Employee benefits help boost employee well-being and morale, and can increase job satisfaction and build loyalty. Here’s why employee benefits are important:

  • Attracting and retaining talent
  • Financial security for employees
  • Aid in work-life balance 
  • Ensure legal compliance for the employer 
  • And more

Who is entitled to benefits in Canada?

Any full-time employee in Canada is entitled to receive employee benefits and perks from their company. Although the benefits may vary from one company to another, companies are legally required to offer government-mandated benefits such as CPP, sick days, PTO, etc. Most companies also offer health and dental, AD&D, etc., to their employees.

Even small businesses are expected to provide their workforce with some employee benefits and perks within their budget.

Do employers have to provide employee benefits in Canada?

There are certain mandatory employee benefits that all employers are required to provide by law. These are:

  • Employment insurance 
  • Canada Pension Plan (CPP)
  • Workers’ compensation insurance
  • Paid time off (PTO)
  • Vacation benefits

Apart from the mandatory benefits, many employers offer supplemental benefits like health and dental plans, life insurance, disability insurance, etc. These are optional benefits that are part of an employee benefits package and are offered at the sole discretion of the employer. 

What are the standard employee benefits in Canada?

Standard employee benefits in Canada include pension plans, maternity and paternity leaves, paid time off (PTO), employment insurance, workers’ compensation insurance, vacation benefits, and sick leaves. Some of the standard optional employee benefits that some employers choose to offer are group health plans, wellness programs, additional days off, and others. 

Types of employee benefits

Mandatory employee benefits in Canada can be categorized into two types:

  1. Benefits mandated by law
  2. Benefits offered on an optional basis

Mandatory employee benefits in Canada

There are certain group benefits that are mandated by law in Canada. In most provinces, the Employment Standards Act defines the rights of employees and the responsibilities of employers. Failing to offer these mandatory benefits can lead to legal action and fines.

Employment Insurance (EI)

Employment Insurance (EI), run by the Federal Government, is a program that offers temporary financial support to employees who are unable to work due to one of the following reasons:

  • An illness 
  • To care for a newborn or adopted baby (paternity and maternity leave)
  • Compassionate care leave
  • Loss of job through no fault of their own

Unemployed workers can receive up to 55% of their average weekly earnings as EI. As of January 1, 2024, the maximum yearly insurable earnings in Quebec and the rest of Canada is $63,200 which means an unemployed worker can get $668 per week. 

Here are the key features of employment insurance:

  • If an employee is unable to work due to an illness or other reasons, they can claim EI for up to 45 weeks 
  • EI depends on the unemployment rate in their province at the time of filing the claim 
  • It also depends on the number of insurable hours an employee has accumulated in the past year (52 weeks) 
  • Workers can receive EI for up to 26 weeks for unemployment due to sickness, 15 weeks for maternity, and 15-35 weeks for compassionate care

The program is administered by Service Canada, a government agency, and individuals typically apply for benefits online or by phone. They must continue to meet eligibility requirements while receiving benefits, such as actively seeking employment and reporting any income earned during the benefit period.

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Pension plan 

The Canada Pension Plan (CPP) is a retirement savings plan that provides a stable income during retirement for individuals and their families.In addition to retirement benefits, the CPP also offers disability and survivor benefits

The CPP makes pension contributions mandatory for most employees. The pension contributions are typically split equally between the employer and the employee. Employees can opt to receive  a reduced pension amount as early as the age of 60, although the full benefits start to pay out, once they reach the age of 65 years. Any employee earning less than $3,500 per year is exempt from this contribution along with their employer. Similarly a self-employed individual may voluntarily opt-in to the program.

Under the CPP, employers and employees pay 5.95% of a worker’s salary in annual contributions which is capped at $3,867 per year. 

While all of Canada follows the CPP, Quebec has its own pension plan called the Quebec Pension Plan (QPP), applicable only to the province of Quebec. It requires employers and employees to contribute 5.4% of a worker’s salary and caps it at $3,867 per year. 

Holidays

Holidays are mandatory for any individual to sustain a healthy work-life balance. The Canadian government strictly asks companies to provide abundant holidays for the overall well-being of the employees. This allows employees to rejuvenate and spend quality time with their families while still being paid what they deserve.

Here is a list of the most prominent holidays celebrated across Canada:

  1. New Year’s Day
  2. Good Friday
  3. Victoria Day
  4. Canada Day
  5. Labour Day
  6. National Day for Truth and Reconciliation
  7. Thanksgiving Day
  8. Remembrance Day
  9. Christmas Day
  10. Boxing Day
  11. Civic Day
  12. Easter Sunday

Workers’ compensation insurance

Workers compensation is a form of social insurance that provides financial and support services to employees who experience work-related injuries or illnesses. Every province has a Workers’ Compensation Board (WCB) that manages and regulates the compensation  offered to employees. The WCBs also decide the premiums that employers need to pay. 

While most organizations need to register with their provincial WCBs, there are certain categories that are exempt from paying workers’ compensation insurance. The province-based exemptions are listed below:

  • Alberta: Self-employed individuals 
  • British Columbia: Athletes, coaches, and stunt persons 
  • New Brunswick: Small businesses with less than two employees
  • Newfoundland and Labrador: Workers at private residences and athletes 
  • Nova Scotia: Self-employed individuals and businesses with less than two employees
  • Ontario: Owners and directors of an organization, financial institutions, law firms, and real estate agencies
  • Prince Edward Island: Artists, entertainers, volunteers, clergy, company directors, door-to-door salespeople, newspaper delivery people, professional athletes, and coaches
  • Saskatchewan: Farming and ranching industries
  • Quebec: Self-employed individuals, athletes, police officers, firefighters

Vacation benefits 

Based on where an individual is working in Canada, their vacation entitlement will vary. They can be accrued in one go or prorated for an employee. The following table gives an overview of the provincial vacation entitlement in Canada:

Province Years of service Minimum Vacation Entitlement 
Alberta Up to 5 years

At 5 years 

2 weeks 

3 weeks 

British Columbia Up to 5 years

At 5 years 

2 weeks 

3 weeks 

Manitoba Up to 5 years

At 5 years 

2 weeks 

3 weeks 

New Brunswick Up to 8 years

At 8 years 

2 weeks 

3 weeks 

Newfoundland and Labrador Up to 15 years

At 15 years 

2 weeks 

3 weeks 

Nova Scotia Up to 9 years

At 9 years 

2 weeks 

3 weeks 

Ontario Up to 5 years

At 5 years 

2 weeks 

3 weeks 

Prince Edward Island Up to 8 years

At 8 years 

2 weeks 

3 weeks 

Saskatchewan Up to 10 years

At 10 years 

3 weeks 

4 weeks 

Québec Up to 3 years

At 3 years 

2 weeks 

3 weeks 

Maternity and parental leave

Employees are entitled to 17 weeks of maternity leave that can be taken up to 13 weeks before the expected date of delivery. Employees who adopt a child are entitled to 63 weeks of parental leave. The leave can be taken by one parent or shared between both parents. 

Sick leave

Different provinces have varying rules when it comes to sick leave. Some of the key features of sick leave as an employee benefit are:

  • Sick leave is not pro-rated. A set number of sick leave days are given to the employees at the beginning of each year 
  • Employees who join in the middle of a year are entitled to the entire number of sick leave for that whole year 
  • Sick leave cannot be cashed out and is not carried over to the next year

The following table has the sick leave entitlement for each province in Canada:

Province Eligibility Number of sick leaves in a year
Alberta NA No provincial requirement to provide sick leave 
British Columbia After 90 days of employment  5 paid and 3 unpaid days in a year
Manitoba NA No provincial requirement to provide sick leave 
New Brunswick No waiting period 5 unpaid days in a year
Newfoundland and Labrador After 30 days of employment 7 unpaid days in a year
Nova Scotia No waiting period 3 unpaid days in a year
Ontario After 2 weeks of employment 3 unpaid days in a year
Prince Edward Island After 3 months of employment

After 5 years of continuous employment 

3 unpaid days in a year

1 paid day in a year

Saskatchewan After 13 weeks of employment 12 unpaid days in a year
Québec After 3 months of employment  2 paid days a year

Optional employee benefits

Although they’re optional employee benefits, employers shouldn’t really treat them lightly. Optional employee benefits are what truly attract and retain employees and should ideally be a crucial part of any organization’s hiring strategy. 

Group health benefits 

Canada has provincial health insurance that is offered to every citizen. So the question is—why should an employer offer health insurance at all? It’s because provincial health insurance only covers some essential medical services while group health benefits are more comprehensive in nature. 

Group health benefits are cheaper than individual health insurance. They’re purchased by an employer and offered to all full-time and/or contractual workers.

Group health benefits typically include:

  • Prescription drugs
  • Paramedical services 
  • Dental and vision care 
  • Medical equipment 
  • Some elective surgeries 
  • Care homes and nurses 
  • Health spending account 
  • Medical emergency travel
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Group Registered Retirement Savings Plans (RRSP)

Group Registered Retirement Savings Plans (GRRSPs) are offered in addition to the mandatory pension plan that most employees are entitled to. RRSPs help employees build additional wealth for when they retire and also give immediate tax benefits to the contributor. 

RRSPs are regulated by the Canada Revenue Agency and the contributions yield returns since they can invested in one of the following options:

  • Mutual funds
  • Exchange-traded funds
  • Equities (Stocks)
  • Bonds
  • Savings accounts
  • Mortgage loans
  • Income trusts

Healthcare Spending Accounts (HSAs)

HSAs are a special kind of medical account that offers a mutually beneficial way for both employers and employees to provide and receive medical insurance benefits. 

Employers create an HSA account for their employees with a maximum spend limit. Employees can utilize the money from this account to pay for any medical requirements. HSAs allow both parties to receive tax benefits. Additionally, it also provides individuals a streamlined access to medical facilities without the burden of extra paperwork.

Some of the key features of HSA are as follows:

  • Funds roll over year-to-year, and there is no “use it or lose it” rule
  • Accounts are portable – you can keep the HSA if you change jobs or health plans
  • Can invest HSA funds for potential growth, similar to an IRA

Disability Insurance (DI)

There are two types of disability insurance that an employer can choose to offer: short-term disability insurance and long-term disability insurance. Short-term disability insurance typically covers a shorter duration, from a few weeks up to six months. Long-term disability insurance is for employees who are unable to work for longer periods and usually begins after the expiration of short-term disability benefits or after a waiting period. 

Disability insurance covers any medical condition that prevents the employee from working such as mental health issues, fractures, back injuries, carpal tunnel, seizures, and hearing or vision loss. Short term disability benefits can be paid out as weekly benefits while long term disability benefits are typically paid out on a monthly basis to an eligible employee. 

Critical illness coverage 

An employee benefits package can also include critical illness coverage that is offered to workers who suffer a heart attack, cancer, stroke, kidney failure, Parkinson’s disease, aplastic anemia, and 26+ common conditions as listed by the Canadian Life and Health Insurance Association (CLHIA).

It is easy to confuse critical illness with a disability. For instance, blindness and paralysis are critical illnesses and disabilities. 

Learn more about the differences between critical illness and disability insurance 

Life Insurance

Life insurance provides financial support to family members in the event of the individual’s passing away. Life insurance as an employee benefit is important to help manage the financial impact from an earning member’s demise. It can be used to: 

  • Pay for funeral expenses
  • Pay off debts 
  • Replace lost income 
  • Make charitable donations 

Employers can pay the entire premium or split the cost with the employees for life insurance benefits. 

Additional paid days off

In Canada, some companies provide additional paid days off beyond statutory holidays and vacation entitlements. These extra days provide employees with more time for personal pursuits, family commitments, or rest. 

Employers offering this benefit often see increased productivity, reduced burnout, and higher job satisfaction. 

Wellness programs

Wellness programs, including health coaching and virtual care, promote overall employee well-being. 

Health coaching offers personalized guidance on nutrition, fitness, and mental health, helping employees achieve their health goals. Virtual care provides convenient access to healthcare professionals via digital platforms, reducing the need for in-person visits. 

These programs enhance employee health, leading to reduced absenteeism, increased productivity, and lower healthcare costs for employers. 

Transportation allowance

Transportation allowances are a valuable employee benefit that can significantly ease commuting stress and expenses. These allowances, provided as a monthly stipend or reimbursement, help cover costs related to public transit, fuel, parking, or even car maintenance. 

Cash bonuses

Cash bonuses are awarded for meeting specific targets or exceptional performance. They provide immediate financial rewards and recognition, fostering a culture of excellence and achievement and driving employees to exceed their goals.

Other supplemental group benefits

Supplemental benefits are a range of comprehensive add-ons that employers may choose to offer their employees. Some companies provide bonuses and stock options as an added perk to their employees. 

Others may provide travel benefits, including all-expense-paid trips for the employee and their families. Supplemental benefits promote loyalty and a sense of belonging among employees. Other examples of supplemental group benefits include:

  • Retirement savings programs
  • Employee training, education, and development programs
  • Flexible work schedules and remote work
  • Compassionate care leave
  • Aboriginal employee leave
  • Childcare benefits

What does an employee benefits plan look like?

In Canada, employee benefits are provided by most companies and small businesses. Here is a detailed sample of what an employee benefits plan looks like in Canada:

Benefit Class Employees Volume Rate Premium
Life A – Owners

B – All other employees

19 $462,500 $0.129 $59.75
AD&D A – Owners

B – All other employees

19 $462,500 $0.039 $18.13
EHC A – Owners

B – All other employees

5 Single  $45.78 $228.90
8 Couple  $91.06 $728.48
6 Family $133.10 $798.60
Dental A – Owners

B – All other employees

5 Single  $42.98 $214.90
8 Couple  $81.66 $653.28
6 Family $122.49 $734.94
Total Monthly Premium $3,436.98

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Understanding Employee Assistance Programs (EAPs)

Employee Assistance Programs (EAPs) are critical benefits that offer confidential support for employees dealing with personal or work-related challenges. These programs help employees manage stress, anxiety, and other issues that might affect their performance and well-being. 

Some of the most prominent EAPs offered by Canadian companies are:

  • Counseling services: Access to professional counselors for issues like stress, anxiety, depression, and relationship problems
  • Legal assistance: Guidance and advice on legal matters, including family law, wills, and housing issues
  • Financial planning: Support with budgeting, debt management, and financial planning
  • Work-life balance support: Resources to help manage personal and professional responsibilities
  • Substance abuse programs: Help for employees dealing with addiction or substance abuse issues

By offering EAPs, employers demonstrate a commitment to their workforce’s holistic health, fostering a supportive and productive work environment.

Provincial variances in employee benefits

Canada’s labour and employment laws fall under provincial jurisdiction. This means that based on the province an employee is working in, the benefits that an employer offers can vary. 

Some of the employee benefits that are different in each province are: 

  • Employee pension plans (Quebec Pension Plan and Canada Pension Plan—more on this later)
  • Vacation benefits 
  • Parental insurance (offered in Quebec) 
  • Statutory holidays 
  • Sick leave 

Quebec Pension Plan (QPP) vs. Canada Pension Plan (CPP)

As previously mentioned, pension plans are a mandatory employee benefit in Canada and the cost is split equally between an employer and employee. However, there is a difference between the pension plans in Quebec and the rest of Canada. Let’s take a look at some of the key differences and similarities between the two:

Canada Pension Plan (CPP) Quebec Pension Plan (QPP)
Percentage of earnings to be contributed 5.95% 5.4%
Withdrawal age  60 (can be deferred

to 70)

60

The maximum annual contribution for both the CPP and QPP is $3,867. 

Structuring an employee benefits package

Employee benefits packages can include one or all of the optional benefits we’ve mentioned above. And while the choices are many and can seem overwhelming, employers should ask themselves the following questions to build a benefits package that will suit their organization and employees: 

  • What benefits match the roles we are hiring for?
  • What benefits will work most for our existing employees?
  • Can I add a benefit that beats my competitor’s package?
  • How can I make the benefits package more cost-effective?

What is the average cost of employee benefits in Canada?

The cost of employee benefits varies based on the special features and benefits that are added to each plan and the customizations provided to employees by the employer. 

Generally, the cost of group health insurance varies. Here is what it can typically look like:

  • A very basic plan can cost between $130 and $250 per employee per month
  • $180–$225 is usually charged per employee per month for a more expensive plan
  • The monthly cost per employee for an advanced plan with comprehensive coverage is $250–$300

These costs are only estimates. The actual costs will vary depending on the specific plan details and the coverage that an employer decides on. 

Usually, offering employee benefits to a large pool of employees may be budget-friendly for companies. However, you can still offer the best benefits at a reasonable price to a small working team.

Address diverse employee needs with a comprehensive benefits package

Any company will have a mixed workforce in terms of age, gender, race, and socio-economic status. This means that a one-size-fits-all employee benefits package does not exist. A benefits package needs to address the diverse needs of all employees. After all, a 40-year-old married woman with a child and a sick parent she looks after will have completely different requirements from a 23-year-old man with student debt who is looking to build his credit score. 

Speak to our licensed, expert advisors to build a benefits package that will suit your organization’s unique requirements.

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Frequently asked questions

Who pays for employee benefits?

Employers primarily pay for employee benefits. Mandatory benefits like CPP/QPP are shared between employer and employee, while optional benefits may be fully covered by the employer, shared between employer and employee, or fully paid by the employee depending on the benefit and the employer policies.

How do employee benefits impact job satisfaction?

Employee benefits go beyond provincial offerings and give employees and their families access to healthcare, better retirement savings, and even life insurance. A good benefits package can make all the difference for an employee since it reduces out-of-pocket costs.

Are employee benefits taxable in Canada?

Whether or not a group benefit is taxable in Canada depends on its type and funding source. Generally speaking, employer-paid premiums for group life insurance, critical illness insurance, and accident insurance are taxable benefits. Short-term and long-term disability insurance may not be a taxable benefit if you pay the premium.

What employee benefits are required by law?

Mandatory employee benefits include the Canada and Quebec Pension Plan contributions, employment insurance, workers’ compensation insurance, vacation benefits, and sick leave. 

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Small Business Group Health Insurance in Canada (2025)

When you run a small business, your tiny (but mighty) team means everything. They deserve to be compensated for their hard work—and we mean more than just their salary. Health insurance for small businesses is a great way to attract and retain workers for the long term. 

In fact, according to Canada Benefits survey, 79% of employees prefer employee benefits over an increase in pay and the most preferred benefit is healthcare insurance.

These employee benefits or group benefits make employees feel protected against all odds, enhancing job satisfaction. They also promote substantial work-life balance and help employees develop a sense of loyalty towards their company. 

Our blog gives insights into what a company health package covers and how to get the best deal for group health insurance for small businesses.

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Understanding group insurance for small businesses

Group health insurance plans for small businesses offer comprehensive benefits to the employees of an organization. A group benefits package typically includes:

  • Health and dental care: Supplementing provincial healthcare by covering services such as elective surgeries, medical equipment, physiotherapy, care home and nurses, and more
  • Vision care: Provides access to eye exams, glasses, and contact lenses
  • Disability benefits: Salary replacement if an employee become disabled and cannot work for a short or long period of time
  • Critical illness insurance: A lump sum payment when an employee is diagnosed with a critical illness
  • Life insurance: A lump sum payment to an employee’s beneficiaries, if they pass away from natural or accidental death
  • Accidental death and dismemberment benefits (AD&D): Financial assistance if an employee has an accidental death, are dismembered or lose your sight. This would be in addition to a life insurance payment
  • Health Spending Account (HSA): A set amount per year that employees can spend on any item or service that improves their health
  • Emergency medical travel: Coverage if employees have a medical emergency while travelling

Learn more about the types of group health insurance for small businesses in Canada 

Group employee benefits can cover a variety of insurance products, depending on the benefits package the business owner chooses.

Coverage Category Covered Services & Items 
Healthcare Private hospital coverage, medical expenses and equipment, some elective surgeries, care homes and nurses 
Vision care coverage Eye exams, glasses, contacts
Dental coverage Teeth cleanings, x-rays, cavity fillings, orthodontics (braces)
Prescription drugs Cost for medication prescribed by a medical practitioner
Health spending account A set amount per year that employees can spend on any item or service that improves their health
Health access Some providers have online access to doctors and health service providers when you sign up for their group insurance plans
Emergency travel medical  Coverage if you have a medical emergency while traveling, trip cancellation/interruption 
Critical illness A lump sum payment when you are diagnosed with a critical illness
Life insurance A lump sum payment if you pass away from natural or accidental death
Short & long-term disability insurance  Salary replacement if you become disabled and cannot work for a short or long period of time
Accidental death and dismemberment (AD&D) insurance Financial assistance if you have an accidental death, are dismembered or lose your sight. This would be in addition to a life insurance payment

Provincial vs group benefits

Why do small businesses need group health insurance?

Small businesses in Canada are increasingly recognizing the importance of group benefits. Some of the key reasons why small businesses need to offer group benefits to their employees are:

  • Cost savings: Group health insurance pools risk among a group of people, leading to lower premiums. This makes it easier for small businesses to offer comprehensive coverage to their employees in a cost-effective manner
  • Comprehensive coverage: Get a wide range of coverage benefits, including hospitalization costs, preventive care, chronic disease management, and mental health support
  • Guaranteed coverage: Small business health insurance plans cover employees with pre-existing conditions with no underwriting
  • Tax advantages: Premiums paid for employee benefits packages are tax-deductible for businesses. This means that the cost of offering group benefits can be offset against the business’s taxable income
  • Employee retention: Job seekers are increasingly prioritizing group benefits when considering employment opportunities. Offering comprehensive group benefits ensures higher rates of employee retention
  • Wellness resources: Provides easy access to additional resources such as wellness programs and health management tools
Employees are 70% more likely to remain loyal to their employer if they’re satisfied with their benefits.
- MetLife
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Factors to consider when choosing a small business benefits package

While choosing a company benefits package, there are a few things that small businesses must take into consideration. These are:

  • The company size and demographics
  • Budget
  • Coverage options
  • Customization options
  • Ease of administration

1. Company size and employee demographics

Company size can play a crucial role in choosing the right group health insurance plan. Small to mid-sized companies have fewer employees than large organizations with thousands of employees worldwide. It is important to understand your employees’ needs and craft personalized plans that suit them. 

2. Budget and cost considerations

An in-depth budget consideration is a must before making a group health insurance purchase. Conducting thorough research before choosing an insurance plan may help you get a reasonable premium quote. It will also help you avoid the added burden of scaling your revenue just to keep up with the costs.

3. Coverage options

While purchasing a medical insurance plan for your employees, it’s important to consider the types of benefits that you might want to add. Some companies provide only health and dental benefits. Others may provide additional coverage such as vision care, pre-existing disease coverage, disability rider, and more.

4. Flexibility and customization

Every individual may have a unique set of medical problems or complications. Offering customization options may also help your employees choose the benefits that they want, curated to their diverse needs. 

Additionally, small businesses may customize their group health insurance plans based on their business parameters and employee demographics. Providing flexibility helps cater to a diverse range of medical requirements with ease.

5. Ease of administration

Businesses look for insurance plans that provide complete support, guidance, and additional tools to streamline record maintenance, premium deposit, payout, and more. This ensures smooth plan management from start to finish.

6. Digital access

Consider the availability of digital tools when selecting an insurance package, including dedicated apps that streamline employee onboarding, enrollment, and claims submission. At PolicyAdvisor, we work with leading insurers like Blue Cross, Sun Life, Manulife, and Desjardins, all of which offer comprehensive digital solutions that simplify policy management for small businesses.

Find the best small business health insurance in Canada

How much does a small business employee benefits package cost in Canada?

The cost of an employee benefits package for a small business will depend on employee demographics, claims history, and plan details. Typical costs 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 a small business chooses and the plan details. 

In general, the larger the employee base, the cheaper the cost per employee. For a small business, the price will be more contingent on industry type and claims history.

Read more about costs and premiums for small business group health insurance in Canada.

Sample cost for small business employee benefits 

Coverage Basic Plan Standard Plan Enhanced Plan
Health
Employees – single $50/month $70/month $92/month
Employees – couple $98/month $130/month $180/month
Employees – family $110/month $170/month $195/month
Dental
Employees – single $30/month $60/month $81/month
Employees – couple $100/month $128/month $140/month
Employees – family $170/month $200/month $250/month
Pooled Benefits
Life insurance & AD&D ($25,000/$50,000/$75,000) $12/month $18/month $26/month
Critical illness Not selected Not selected Not selected
Long-term disability Not selected Not selected Not selected
Total monthly premium for 20 employees $3,000/month $4,100/month $5,500/month
Cost per employee $150/month $205/month $275/month

*Illustrative pricing for a small business with 20 employees. Actual costs will vary. 

What does a small business benefits package look like?

A typical company benefits plan will include the coverage details, plan details, and costs. The following table illustrates what a group benefits plan looks like:

Coverage Plan 1 Plan 2 Plan 3
Health
Drug maximum $3,000/person $5,000/person $10,000/person
Drug coinsurance 80% 80% 80%
Paramedical services $300/practitioner $300/practitioner $500/practitioner
Vision care NA $150/person for 24 months $200/person for 24 months
Dental
Basic dental maximum $700/practitioner $1,000/practitioner $1,500/practitioner
Basic dental coinsurance 80% 80% 80%
Recall exam 1 every 9 months 1 every 6 months 1 every 180 months
Pooled benefits
Life insurance Optional Optional Optional
Accidental Death & Dismemberment (AD&D) Optional Optional Optional
Disability benefits Optional Optional Optional
Other benefits
Health Spending Account (HSA) $100/year $500/year $1,000/year
Allowance account As requested As requested As requested
Travel insurance Yes Yes Yes

*Representative illustration of what a small business health insurance plan looks like. Actual costs will vary.

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Which are the best companies for small business health insurance in Canada?

There are several group insurance providers out there with a wide range of plans to fit your business’s needs. At PolicyAdvisor, we work with 30 of Canada’s top insurance companies to get you the best rates on the benefits plans you need for your business.

Company PolicyAdvisor rating 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
  • Customized 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

While some companies offer different benefits and different prices, ultimately the best insurance company is the one that works best for your business needs. Like all insurance products, pricing and coverage will be specific to your unique business needs.

Pooled insurance plans for small businesses in Canada

Pooled insurance plans are a collaborative strategy that allow multiple small businesses to come together and provide coverage to their employees. Offering pooled group benefits in Canada helps reduce costs and administrative efforts for small businesses in Canada. 

Advantages of pooled group benefits for small businesses

  1. Lower premiums: Combining multiple small businesses, the premiums for group benefits are reduced when compared to individual health plans
  2. Access to comprehensive coverage: Individual small businesses may not always be able to offer comprehensive coverage such as dental, vision, disability, etc. Joining a larger pool increases the range of group benefits that a small business can offer to its employees
  3. Reduced administrative efforts: Pooled group benefits plans are managed by the insurer. This reduces the administrative burden of a group plan on the small business, allowing it to focus on their core operations
  4. Customization options: Many pooled insurance plans offer some kind of customizations. This allows businesses to offer tailored coverage to their employees

How to choose the best company benefit package for your small business?

When choosing a company benefit package for your business in Canada, ask yourself the following questions:

  • What kind of plan is the most suitable for my business?

Depending on your budget, decide if you want to pay for all the coverage or split the cost with your employees. You should also think about whether you want to offer group health benefits to your part-time employees or only to full-time staff.

  • What kind of coverage do my employees need?

Analyze your employees’ needs and find a plan that truly works for them. For instance, if you operate in a high-risk industry such as construction, you might want to consider a plan with comprehensive disability or accident coverage.

  • How much do I want to spend on group health benefits?

Assess your employees’ needs and finalize a budget that works for your organization. Compare plans and choose the one that best suits you.

Common mistakes in selecting group health insurance plans

When buying group health insurance as a small business in Canada, avoid these four mistakes:

  • Not reviewing your options (at renewal/ purchase): Don’t renew or buy a group health insurance plan without comparing enough providers. Consult a licensed insurance advisor to identify what works well for your company and your workforce. You may also want to explore customized options that align better with your business’s evolving needs
  • Not understanding policy terms and conditions: Review your plan’s coverage limits, exclusions, waiting periods, and claims processes to avoid any dissatisfaction among employees or unforeseen expenses
  • Ignoring employee needs: Consider factors like employee age, family status, and health profiles. Survey employees about their healthcare priorities and review past claims data to ensure the selected plan addresses actual needs rather than assumed ones
  • Overlooking cost-sharing structures: Consider how premium costs will be shared between the employer and employees, and how this may affect both your budget and employee satisfaction

How is a small business benefits package set up?

A small business benefits package is set up in the following way:

  • Sign up documents and group set up: Your sign up documents are shared by your advisor and need to be completed and signed. Once done, your group coverage is set up which can take up to two weeks 
  • Employee enrolment: Employees will get an activation email with instructions on how to enroll 
  • Billing: Once your employees are enrolled, you will receive the first billing statement 
  • Plan activation: Your plan is activated and your employees can start using their benefits 
  • Administrator access: Once your plan is all set up, you will receive the credentials to the administrator portal and the insurer will walk your designated administrator through the portal

What are the participation requirements for group health insurance plans for small businesses?

The participation requirements for a group benefits for a small business in Canada are: 

  • Group size: Most insurers need a minimum 2-3 member participation requirement, some may have a 50 people requirement
  • Eligibility: Canadian citizens under age 75 covered by their provincial healthcare plan and working full-time 
  • Participation basis: Mandatory to join the plan 
  • Family content: Must be a true-employer-employee relationship receiving wages and/or a T4 from the plan sponsor 
  • Waiting period: 3 months waiting period for new employees. No waiting period for employees working when the coverage begins 
  • Plan level changes: 1 level renewal with 24 months lock-in period 
  • Termination age: Retirement or age 75
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What will insurers ask on a company benefits package application?

Insurers will ask you about your company profile and employee demographics. Some of the questions that they might ask are:

  • How many employees do you have?
  • What industry is this business? 
  • Has your company had group insurance before? If so, provide a claims history. 
  • Is your company associated with a group or union? 
  • Do you want your benefits to differ by class (i.e. managers get one plan, regular employees get another)
  • Are there any employees currently absent or on maternity leave? 
  • Are all your employees participating in this plan? 
  • Are your employees covered by worker’s compensation?
  • Are any of your employees regularly working outside of Canada?
  • About your employees. Tell us about their…
    • Job title
    • Date of employment
    • Salary
    • Hours 
    • Province of residence
    • Date of birth 
    • Sex 
    • Family status (married, single, common-law)
    • Dependents
Small business group benefits application form

Are group benefits tax deductible in Canada?

Yes, group benefits provided by an employer are generally tax-deductible in Canada. Employers can deduct the cost of providing group benefits, such as health and dental insurance, from their business income when calculating their taxable income.

It’s important for employers to consult with a tax professional or review the CRA guidelines to ensure they are complying with the specific rules and requirements for deducting group benefits.

Group health insurance regulations in Canada

Health insurance in Canada is strictly regulated and under the constant supervision of certain federal and provincial enforcement bodies. Canadian federal regulations, such as the Canada Health Act and Income Tax Act, govern most health insurance policies. 

If you’re a small business owner buying group health insurance for your workforce, you must abide by regulatory guidelines for the greater good of your company and its assets. Using various educational resources and remaining up to date with the latest laws will help you keep up with regulatory changes.

Get quotes for small business benefits package

If you’re looking for an affordable group benefits package for your small business, or business of any size for that matter, our licensed insurance experts at PolicyAdvisor are here to help. We’ll ask some questions about your business (like the ones listed above) and shop around to find you the best rate for health benefit plans for your employees.

Book a call with one of our friendly expert insurance advisors to chat about protecting your personal and financial health today!

Need insurance help?

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

Frequently asked questions

Is group insurance for small business mandatory in Canada?

No. Employee benefits, such as health insurance, are not mandatory. However, providing insurance for your employees may provide that competitive edge your business needs to maintain employee retention.

The premium costs may seem like another additional expense to take on, but ultimately having a healthy and consistent employee base will save you money in high turnover costs. Plus, insurance premiums can be claimed as tax-deductible business expenses.

Are there tax benefits associated with group insurance for small businesses?

Yes. The premiums paid for group benefits are tax-deductible for businesses. This means that the cost of offering group benefits can be offset against the business’s taxable income.

What is an HSA?

A Health Spending Account (HSA) is a personal fund designated for employees and their eligible dependents. It covers health and dental expenses not included in provincial health insurance or employer-sponsored group benefit plans for a fixed amount.

The benefits provided through an HSA are fully tax-deductible, offering businesses an opportunity to save money while ensuring the well-being of their employees.

How can small businesses in Canada manage company health insurance plans?

Small businesses can manage group health insurance by working with licensed insurance advisors such as those at PolicyAdvisor. They can utilize online tools for employee enrollment and claims processing that insurers such as Sun Life, Benefits by Design, Equitable Life, etc. offer. 

How can small businesses qualify for lower insurance premiums in Canada?

Small businesses can qualify for lower insurance premiums by evaluating their providers for competitive rates, opting for a higher deductible (which reduces premium costs), and regularly reviewing their plan (typically annually) to avoid any redundancies, such as covering employees no longer on their payroll.

Small businesses can also manage their premiums better by offering subsidized gym memberships or preventive care programs, that can lower long-term costs.

What are the consequences of not providing group health insurance for employees in small businesses in Canada?

There are significant consequences for small businesses that don’t provide group health insurance to employees:

  • Difficulty in attracting and retaining talent: Nearly half (49%) of small business employees would choose health benefits over a pay raise, while 76% of employees without health benefits would leave their current job for one offering better coverage. These numbers highlight that any business, irrespective of its size, will find it difficult to attract or retain talent without employee benefits
  • Lower employee productivity: A lack of health benefits can lead to decreased morale and engagement, as employees may feel undervalued and unsupported
  • Increased business risks:  Over 160,000 small businesses in Canada (1 in 8) have seen employee resignations due to better health benefits elsewhere. This turnover not only disrupts operations but also incurs significant costs (in recruiting and training new employees), and increases business risks

How often should small businesses review and adjust their group health insurance plans?

Small businesses in Canada should review and adjust their group health insurance plans annually to evaluate changing employee needs, compare market offerings, adapt to workforce demographics, and optimize costs while maintaining valuable benefits.

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Types of Group Health Insurance Plans in Canada (2025)

An average employee in Canada works for 40 hours a week. That is 40 hours of their time dedicated to working for an organization and helping it grow and achieve its goals. In return they expect their employer to care of their wellbeing. One of the easiest and most effective ways for an organization to do this is by offering them an employee benefits plan. 

Employee benefits plans, also known as group benefits, employee insurance plans, or employer-sponsored plans, are offered by an organization to its full-time or part-time workers. In Canada, these plans are available in various forms, customized to meet the unique and diverse needs of an organization and its employees. 

In this blog, we’ve explained the different types of group insurance plans that are available. If you’re an employer, looking to attract and retain talent, or an employee who wants to understand group health coverage, this blog is for you!

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How is a group health plan different from an individual health insurance plan? 

The main difference between a group health plan and an individual health plan is reflected in their respective names—the former covers a “group” of employees in an organization while the latter is purchased by an individual for personal health coverage.

Difference between group health insurance and individual health insurance

Types of group health insurance plans in Canada

There are three types of group health insurance plans in Canada: Traditional group health insurance plans, Health Spending Accounts (HSAs), and extended group health insurance.

Traditional group health insurance plans

In Canada, traditional group health insurance plans are typically provided by employers to their employees. These plans cover various health-related expenses that may cause financial strain for individuals or their families. The main types of traditional group health insurance plans in Canada include:

1. Extended Health Care (EHC) plans

EHC plans are the most common form of group health insurance plan that employers provide to their team members as an additional perk for their efforts. Most EHC plans cover a comprehensive range of healthcare facilities, such as vision care, physiotherapy, chiropractor visits, prescription drugs, and more.

2. Dental insurance plans

Apart from EHCs, many group health insurance plans also offer dental insurance benefits that protect the individual as well as their dependents from any unforeseen expenses.

Dental plans cover a range of dental care services, including routine check-ups, cleanings, x-rays, fillings, extractions, and more extensive procedures like crowns and orthodontics.

3. Disability insurance

Another form of group health insurance includes disability insurance that may also be offered to employees. Disability insurance protects an individual when their health problem prevents them from working a job and earning a steady income for their family.

Individuals with disability insurance will receive periodic payouts that will help them easily cover basic day-to-day expenses such as groceries, mortgages, children’s education, etc.

4. Employee Assistance Programs (EAPs)

EAPs help with individuals’ overall well-being and can be added as a lucrative perk to a group health insurance plan. They offer support services such as mental health counseling, legal advice, and financial planning for employees dealing with personal issues that might affect their performance at work.

Find out more about how group health insurance can help small businesses in Canada

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Health Spending Accounts (HSAs) 

HSAs are unique health accounts that provide a mutually beneficial way for employers as well as employees to work with health insurance. Otherwise known as Health Care Spending Account (HCSA) or Health Reimbursement Account, HSA is more of an out-of-the-pocket payment that the employer bears for their employees.

Employers receive high tax rebates from providing HSA facilities for their employees. On the other hand, employees prefer this scheme as it automatically eliminates the burden of copay and deductibles. Most HSAs have a set amount of annual coverage for each employee and their dependents.

Extended group health insurance

Extended group health insurance covers a detailed list of medical complications and illnesses that can be covered under the group health insurance plan as added benefits for employees. With a wide array of features to choose from, employers may provide some or all of the benefits that can be covered under this plan. 

Some of the most prominent features of extended group health insurance may include the following:

  • Prescription drugs: It may include coverage of prescription drugs such as medications for hypertension, thyroid, kidney problems, or even insulin shots
  • Vision care: This covers the cost of regular eye checkups, prescription glasses or contact lenses, eye care essentials, and even surgery if required
  • Paramedical services: This covers the cost of paramedical services such as ambulance charges, extensive therapy, additional medical supplies, etc
  • Critical illness insurance: This ensures that employees or their dependents receive a lump sum amount of money on being diagnosed with a critical disease such as cancer, heart attack, stroke, etc
  • Accident insurance: This safeguards employees as well as their families from financial turmoil in case of an injury or trauma due to an accident
  • Travel insurance: This provides complete security to individuals and their dependents in case a medical emergency strikes while they’re traveling

Types of group health benefits 

In Canada, group health benefit plans typically fall into three main categories: employer-sponsored plans, benefits provided through professional associations, and government-sponsored benefits.

Employer-sponsored benefits

Employer-sponsored benefits are offered by an employer to the employees of an organization, forming a key part of an organization’s compensation package. Employers work with licensed experts, such as the ones at PolicyAdvisor, to obtain a group health plan that is tailored to meet the needs of the employee pool at the organization. 

Employer-sponsored benefits are typically part of an employee’s compensation package and are offered as a perk. This means that the employer pays most or all of the premium for the group health benefits being offered to their employees. Since these benefits are offered to a group of people, the premiums are lower as compared to individual plans since the insurer’s risk is distributed amongst the pool of employees. 

In some cases, the cost might be split between the employer and employees, especially if the latter chooses to add family members to their group health benefits plan. 

Blue bulb

Did you know?

Businesses that have a small number of employees can choose to pool together with other similar sized organizations if they want to offer group benefits to their workers. Pooling an employee benefits plan helps the insurer spread out their risk and offer lower premiums to the pooled group. This is known as benefits pooling or employee benefits pooling. 

Key features of employer-sponsored plans

Some of the key features of employer-sponsored group benefits plans are:

✅ They can be paid for largely or in entirety by an employer

✅ Smaller organizations usually need 100% participation while larger ones will need 70%

✅ Employees can add family members to their group benefits for an additional cost 

❌ Employer-sponsored plans are typically not portable and only last for the term of employment

❌ Employer-sponsored plans have limited customization

❌ Some organizations might exclude part-time workers or employees on unpaid leave from these plans

Learn more about how group health insurance works

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Professional association benefits

Professional associations are organizations that offer networking opportunities to a group of people from a certain industry or profession. These associations include financial institutions, retiree organizations, college and university alumni groups, and clubs. 

Professional associations offer standardized group benefits to their members and their families. Similar to employee benefits, every member can choose to get coverage for health & dental, vision, prescription medication, and paramedical services. The premiums can either be paid directly by the members or deducted from their membership fees. 

Depending on the preference of the association, they might also offer life insurance, disability insurance, and accidental death and dismemberment (AD&D) insurance. For example, an armed forces or army veterans association might choose to offer life, disability, and AD&D insurance to its members while an advocacy group for a trade  association might not. 

Since a group of people are being insured under professional association benefits, the premiums are going to be lower and the plans will be customizable. It is beneficial to work with licensed experts when figuring out the best group benefits for a professional association. 

Key features of professional association benefits

Professional association benefits are a great way to increase and retain members of an organization. Some of the key features of these benefits include:

✅ Highly customizable plans, tailored based on the association’s member composition

✅ Lower premiums since the insurer’s risk is spread

✅ Group benefits extended to family members and loved ones 

❌ There is no portability with coverage which ends when a membership expires or is stopped

Government-sponsored benefits

Government-sponsored group benefits are provided by the provincial or federal government. These are specially given to vulnerable demographic groups such as children, seniors (over 65 years of age), and individuals who might not be covered under an employee insurance plan. 

The coverage and eligibility for government-sponsored benefits vary depending on the specific program and the province where it is offered. Different provincial plans provide different kinds of coverage. 

Provincial benefits plans such as the Ontario Health Insurance Plan (OHIP), Alberta Adult Health Benefit (AAHB), and Medical Services Plan (MSP) for British Columbia are some examples of government-sponsored benefits. 

Key features of government-sponsored benefits

Some of the key features of government-sponsored benefits are:

✅ The coverage varies based on the province/jurisdiction where it is offered 

✅ Only the citizens of the particular province can be covered under this kind of plan

✅ Low-income individuals, senior citizens, and children are covered under government-sponsored group health plans

❌ Plans are usually not customizable and the province will decide what coverage they offer 

❌ These plans are typically not as comprehensive as other group health benefits plans

Provincial health care plans vs employee benefits plans 

The Canadian government provides healthcare to all its citizens. So the question that arises is: why are group benefits plans even necessary? It’s because provincial health care plans typically cover essential medical needs such as emergency healthcare and other basic medical care that includes surgeries and doctor visits. Employee insurance plans, on the other hand, provide wider, more extensive supplementary medical coverage. 

Provincial vs group health insurance in Canada
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Estimating costs of traditional group health insurance

Traditional group health plans may come in several different formats with limitless customization options. Hence, it’s safe to say that the cost of this insurance plan will also vary. Although prices may fluctuate across companies depending on employee demographics, here is an estimate:

  • Small businesses (up to 50 employees): The cost per employee can range from $1,500 to $4,000 per year
  • Medium-sized businesses (50-250 employees): The cost per employee can range from $1,200 to $3,500 per year
  • Large businesses (250+ employees): The cost per employee can range from $1,000 to $3,000 per year

Cost-sharing options for employee health benefits

Group health insurance may also be categorized based on how the insurance premium is being paid and who pays for it. Taking a look at the plethora of cost-sharing options, employee health benefits may be as follows:

  • Employer pays: In this category, the employer bears the entire cost of the premium on behalf of the employee. The employee usually provides this facility as an added perk to their dedicated workforce
  • Employee pays: In this arrangement, the employee bears the entire cost of the premium. However, the employer may provide assistance with the insurance paperwork for a streamlined procedure
  • Employer and employee split: This procedure allows the employer as well as the employee to split the cost of the premium. In this way, both parties may receive tax benefits and other mutual perks
  • Coverage-based split: In this method, there can be different cost-sharing arrangements for different types of coverage. The cost-sharing procedure can be customized based on the agreement between the employer and the employee

Explore more about employee benefits through our detailed guide

Importance of group benefits plans

Group health benefits or employee insurance plans are crucial to attract and retain talent. For professional associations, they work as an added benefit for the members. The different types of group benefits are important because:

  • They attract and retain employees/members of an organization 
  • They promote employee/member wellbeing and reduce financial burdens when it comes to healthcare 
  • Government-sponsored benefits are crucial for vulnerable groups such as the elderly and those with lower incomes 

Which are the best group health insurance companies in Canada?

There are several insurance companies in Canada that can help build a group benefits plan for your organization. At PolicyAdvisor, we work with 30 of Canada’s top life insurance companies to get you the best rates on the benefits plans you need for your business. While all insurers offer different kinds of coverage, the best health insurance company is the one that understands your unique requirements and builds a customized plan with you.

Need insurance help?

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

Frequently asked questions

Is group health insurance taxable for employees?

Apart from Quebec, employer-sponsored benefits like prescription drugs, vision and dental are not taxable. 

What is the most common type of group health insurance?

Employer-sponsored group plans are the most common type of group health insurance. They are offered directly from the employer to their employees.

Which are the top three health insurance companies in Canada?

Some of the best health insurance companies in Canada are Desjardins, GMS, and Blue Cross. Our guide to group health benefits will give you more information on what each company offers.

What are health and welfare trusts (HWTs)?

Health and Welfare Trusts (HWTs) were a way for employers to offer group benefits to employees with some tax advantages, but they are now discontinued in Canada. HWTs that were in use previously were converted to a different health insurance scheme.

Which are the best group health insurance companies in Canada?

There are several health insurance companies in Canada from which to choose. Some prominent companies working with group health insurance include Manulife, Sun Life, Desjardins, Canada Life, etc. You may connect with expert insurance brokers (such as licensed experts at PolicyAdvisor) to help you understand the process.

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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. Also, known as employee benefits plans or group plans, these 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. 

If you’re an employer looking for group benefits plans for your employees, one of the first things you will have to do is find a group insurance company that gives you comprehensive coverage options at reasonable costs.  

In this blog, we’ve reviewed the top group benefits providers in Canada and have listed down 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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What is group insurance?

Group insurance is a policy that protects a “group”—usually employees of a company or members of an organization. 

It’s a type of insurance coverage that’s offered to a group of people under a single policy, instead of each person having their own individual policy. Basically, it’s a way for businesses or organizations to provide benefits like health, dental, life, disability insurance, and more to their team as a whole, usually at a better rate than if each person tried to get insurance on their own. So, it’s kind of like getting a bulk discount on protection for the whole group.

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

How are group benefits policies priced in Canada?

Typically, a group insurance plan costs each employee between $1,500 and $4,000 per year on average. However, pricing for group health insurance can greatly vary based on what you choose. 

For smaller businesses, the average annual premium for non-mandatory benefits is around 15% of the payroll and can increase up to 30% of the payroll for bigger companies. To figure out the total premium, rates are multiplied by how much coverage each type of policy needs. 

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

How to purchase a group benefits insurance plan?

You can purchase a group benefits insurance plan by doing the following:

  1. Identify the specific benefits your employees need
  2. Speak to our advisors and look into various group benefits insurance providers in Canada
  3. Evaluate plans based on coverage, costs, and benefits
  4. Seek advice from our insurance experts
  5. Choose the plan that best fits your needs and budget
  6. Work with the provider to enroll your employees

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.

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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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Group Health Insurance Costs in Canada 2025 : Premiums & Guide

If employees are the backbone of an organization, their health obviously becomes paramount. After all, only physically and mentally healthy employees can optimally perform their tasks and duties. So naturally,  a group health insurance plan becomes a crucial employee benefit. But, how much does a group health insurance plan cost? 

We’ve explained the factors that can influence group health insurance costs, how costs are split (or not), and if the premiums can be lower. All of this and more, are in this blog. Read on or click below to speak to one our experts to learn more! 

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What factors influence group health insurance costs?

Group health insurance costs in Canada are largely impacted by these five factors:

  1. Group size and health
  2. Employee’s age and gender
  3. Claim history
  4. Occupation type
  5. Plan selection
  6. Group composition
  7. Coverage levels
  8. Use of the group plan

Group size and health: The size of an employee pool influences premiums, with larger groups often enjoying lower costs, meaning group health benefits for small businesses come with higher premiums compared to larger companies. However, pre-existing conditions within the group can make these expenses vary. For example, a company with 200 employees might pay lower premiums per employee compared to a small business with only 20 employees. 

Employees’ age and gender: Group health insurance premiums often take into account the age and gender distribution of employees. For instance, the premium for employees over the age of 50 will be higher as compared to the younger employees because aged employees have a higher risk of illness compared to young employees.

Claim history: If an organization has a higher number of group health insurance claims in the past, their premium will be higher upon plan renewal. This is because a higher number of claims increases the risk an insurer takes when offering a group health plan.

Occupation type: Office-based occupations generally incur lower premiums because the risk of falling sick or of an accident is far lower than in hazardous sectors like construction.

Plan selection: Depending on how comprehensive the plan is and the benefits it offers significantly impact the cost of group health insurance. For example, if a plan offers a Health Spending Account (HSA), this might raise premiums compared to a basic plan that covers only essential medical expenses.

Group composition: Employers may offer tiered benefit plans that provide different levels of coverage based on seniority or job level. Executives or senior management may have access to premium plans with enhanced benefits, while junior staff members may be enrolled in standard plans with basic coverage.  

Coverage levels: Group insurance rates are influenced by the coverage levels chosen, including co-pays, deductibles, maximum coverage limits, and the volume of insured individuals. Plans with lower co-pays and deductibles or higher coverage limits typically result in higher premiums.

Use of the group plan: The claims experience, or how frequently and extensively the plan is used by members, also affects costs. Higher utilization rates and frequent claims can drive up the overall cost of the group health plan.

Average group health insurance costs and premiums in 2025

The estimated average costs and premiums for group health insurance in Canada for 2025 vary depending on the size of the business. Based on current trends and available data, the average costs are:

  • Small Businesses (1-50 employees): $250 – $350 per employee per month.
  • Medium Businesses (51-200 employees): $200 – $300 per employee per month.
  • Large Businesses (201+ employees): $150 – $250 per employee per month.
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How much does group health insurance cost?

Group plans are often offered in different packages that are priced differently with some that cover more benefits than others. Most insurers categorize group health insurance plans in three ways: basic, advanced, and premium.

To help you understand how much you’ll pay, we’ve created a table with the average cost of group health insurance per person per year in an organization for a plan with different benefits:

Feature Basic Plan Advanced Plan Premium Plan
Prescription Drug Coverage 70% of lowest-cost-alternative up to $1,000 formulary & non-formulary drugs vaccines/immunizations 80% of lowest-cost-alternative up to $3,000 formulary & non-formulary drugs vaccines/immunizations 100% of lowest-cost-alternative up to $6,000 formulary & non-formulary drugs vaccines/immunizations
Health Practitioners $250 combined $350 combined $400 per specialist per year
Counseling Services $250 $350 $400
Eye Exams, Glasses, Contact Lenses & Surgery $60 per 2 years (eye exams only) $150 per 2 years $300 per 2 years
Assistance Program Unlimited short-term services Unlimited short-term services Unlimited short-term services
Travel Coverage 90 days, unlimited number of trips, $5 million total coverage 90 days, unlimited number of trips, $5 million total coverage 90 days, unlimited number of trips, $5 million total coverage
Survivor Benefit 12 months 12 months 12 months
Diabetic Supplies & Equipment $300 $300 $500
Oxygen Equipment $500 $500 $500
Custom-Made Foot Orthotics 1 pair every 5 years for adults 1 pair every year for children under 16 years of age 1 pair every 5 years for adults 1 pair every year for children under 16 years of age 1 pair every 5 years for adults 1 pair every year for children under 16 years of age
Ostomy Supplies $300 $300 $300
Ambulance $1,500 Unlimited Unlimited
Air Ambulance Unlimited Unlimited Unlimited
Casts & Crutches Unlimited Unlimited Unlimited
Preferred Hospital Rooms Unlimited Unlimited Unlimited
Private Duty Nursing $2,500 $2,500 $5,000
Accidental Injury to Natural Teeth $2,000 per injury $2,000 per injury $2,000 per injury
Wheelchairs, Motorized Scooters & Hospital Beds $500 per policy per 5 years $500 per policy per 5 years $500 per policy per 5 years
Artificial Limbs, Eyes, & Larynx $10,000 lifetime $10,000 lifetime $10,000 lifetime
Patient Walkers $200 per policy per 3 years $200 per policy per 3 years $200 per policy per 3 years
Breast Prosthesis 1 if lateral / 2 if bilateral per 2 years 1 if lateral / 2 if bilateral per 2 years 1 if lateral / 2 if bilateral per 2 years
Health Supplies & Equipment $500 combined $500 combined $500 combined
Out-of-Province Referral (within Canada) Not included $50,000 lifetime $50,000 lifetime
Hearing Aids Not included $500 per 5 years $500 per 3 years
Therapeutic Shoes Not included $200 $200
Blood Pressure Monitor Not included Not included 1 per policy per 5 years

How to manage and reduce group health insurance costs?

You can attempt to reduce your group plan costs by considering the following:

  • Evaluate and customize plans: Regularly reviewing and tailoring health plans to fit the group’s specific needs can prevent overpaying for unnecessary coverage
  • Promote preventive care: Encouraging preventive care measures, such as regular check-ups and screenings, can reduce the incidence of serious health issues and lower long-term costs
  • Virtual healthcare: Offering virtual healthcare options can decrease costs by reducing the need for in-person visits and providing convenient access to medical advice
  • Cost-sharing models: Implementing cost-sharing models, where employees contribute to the cost of their care through co-pays and deductibles, can help manage overall expenses
  • Health and wellness programs: Introducing comprehensive health and wellness programs can improve overall employee health, leading to fewer claims and lower healthcare costs
  • Wellness incentives: Providing incentives for healthy behaviors, such as gym memberships or wellness challenges, can encourage a healthier workforce and reduce healthcare spending
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Who pays for a group health plan?

Different organizations have different rules when it comes to paying group health insurance premiums. Generally, there are three ways in which the premiums for group health insurance are paid. These are: 

  • Employer-sponsored plans: The employer pays the entire cost of the group health benefits plan and the employee is not expected to contribute
  • Cost sharing with employees: An employer and their employees split the premium costs at a predefined rate. Commonly used splits are 50 percent each or 70 percent by the employer and 30 percent by the employee. These arrangements can differ depending on the specific plan and the agreements between the employer and their employees
  • Employee add-on costs: If employees want to add dependents or get an advanced plan with additional benefits, they have the option to pay the extra premium

How does one choose between these cost-sharing options?

The choice truly lies with the employer! Depending on organizational budgets, goals, and employee requirements, employers can choose to pay for or split the cost of group health insurance premiums. 

Let’s understand this with an example: A startup may opt for a cost-sharing arrangement, with the employer covering 70% of the premiums to make it more affordable, while still providing valuable benefits to employees. Alternatively, a larger corporation may choose to pay for a comprehensive group health insurance plan without any contribution from the employees.

Types of group health insurance plans

The cost of a group health plan varies depending on the type of package an employer purchases with options such as basic, advanced, premium offering different levels of coverage. Each package offers different coverage and depending on who is covered, the premiums can vary. For small businesses, a benefits plan can cost about 5-15 percent of the total payroll on an annual basis. 

In the following table, we’ve included representative average premium costs for a group health insurance plan based on who is covered, the plan type, and coverage options: 

Coverage type Benefits offered Premium
Basic
  • Prescription drugs coverage – 70% up to $1,000
  • Health practitioners – $250 combined
  • Counselling services – $250 combined
  • Eye exams – $60 per person
  • Travel insurance – Unlimited number of trips for 90 days, $5 million coverage
  • For individuals: $35 / month
  • For couples: $61 / month
  • For families: $80 / month
Advanced
  • Prescription drugs coverage – 80% up to $3,000
  • Health practitioners – $350 combined
  • Counselling services – $350 combined
  • Vision care – $150 per person
  • Travel insurance – Unlimited number of trips for 90 days, $5 million coverage
  • For individuals: $75 / month
  • For couples: $132 /month
  • For families: $175 /month
Premium
  • Prescription drugs coverage – 100% up to $6,000
  • Health practitioners – $400 combined
  • Counselling services – $400 combined
  • Vision care – $300 per person
  • Travel insurance – Unlimited number of trips for 90 days, $5 million coverage
  • For individuals: $137 / month
  • For couples: $244 / month
  • For families: $324/month

Key considerations for choosing group insurance plans

Employers should look at supporting their employees’ health and wellness by offering a comprehensive group health benefits plan that includes:

Alongside diverse benefits, employers must also compare:

  • Premiums: The monthly/annual payment for employees’ initial expenses for health insurance coverage
  • Deductibles: Annual amounts employees must pay before insurance coverage starts, in addition to premiums unless the employer wishes to pay
  • Copayments: Fixed charges employees incur for doctor visits and prescriptions
  • Coinsurance: Amounts employees are obligated to pay after meeting deductibles and other conditions

How can I enroll in group health benefits?

Once hired, you need to enroll in the group health insurance plan within a deadline. If this deadline is missed, you might have to wait until the annual enrollment window is open. Typically, a new employee who joins after the enrollment period is over has to wait for a period of 30-90 days before they can get group health benefits. This period is designed to ensure a degree of commitment from the employee to the employer before benefit enrollment.

Some group health insurance plans offer supplemental benefits like dental and vision care. During the enrollment process, you can choose any additional benefits you might want and add your family members and/or dependents.

How can an employer apply for group insurance? 

Applying for group health insurance in Canada is a straightforward process, typically initiated by the employer on behalf of their employees. Here’s a step-by-step guide:

  • Research carriers: Start by researching insurance carriers in Canada that offer group health insurance plans. Some well-known carriers that offer group plans include Sun Life, Manulife, Canada Life, Equitable Life, Bluecross, GMS, Wawanesa, and several others. Each carrier may offer different plans and options, so it’s essential to compare their offerings to find the best fit for your organization.
  • Connect with our advisors: Reach out to our advisors at PolicyAdvisor and inquire about our group health insurance plans. Our insurance experts will provide you with information about the plans we offer, including coverage options, premiums, and any additional benefits. They will also make it easy to review and compare plans across the market helping you find the best plans for your coverage needs.
  • Provide information through a form: During the application process, the insurance carrier will likely ask for details about your company, such as the number of employees, industry type, and business structure. They may also request information about the desired coverage levels and any additional benefits you wish to include in the plan. 
  • Review and select: Once you’ve provided all the necessary information, the insurance companies will review the information and provide quotes for the proposed plans. You can then review the proposed group health insurance plans from each carrier. Consider factors such as coverage, premiums, network of healthcare providers, and additional benefits before making a decision.
  • Enrollment: After selecting a plan, the next step is to enroll your employees in the group health insurance program. The carrier will assist with the enrollment process, including providing enrollment forms and instructions for your employees to complete.

Know more about the best health insurance companies in Canada 

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Frequently asked questions

Who is eligible for a group health policy in Canada?

Typically, organizations mandate that the employees must be Canadian residents, or be temporarily assigned outside their country of residence. Additionally, their Government Pension Plan and Government Health Insurance must be in force. 

What is the average cost of premiums per employee in Canada?

On average, group insurance plans typically cost between $1,500 and $4,000 annually per employee.

How much does group health insurance cost for small businesses?

The average expense for a small business is approximately $1,822 per employee per year. 

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How much do small business employee benefits cost in Canada?

The cost of small business employee benefits ranges from $80 to $200 per employee for basic plans, $100 to $250 for enhanced plans, and $150 to $350 for comprehensive coverage. The overall cost varies based on employee demographics, claims history, and specific plan details. 

Generally, larger employee bases result in lower costs per employee, while the expenses for small businesses are often influenced by industry type and claims history.

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What is the cost of a small business employee benefits package?

Employee benefits packages for small businesses typically cost between $80 and $350 per employee per month. However, the costs can greatly vary depending on the number of employees, the type of coverage offered, employee demographics, and other factors.  

For small businesses with up to 50 members, the total cost of a group plan per month ranges between $1,185 and $6,412 per month, depending on the number of employees.

Total monthly cost of group insurance for small businesses

Employee count Basic plan Standard plan Enhanced plan
15 employees $1,185/mo $1,380/mo $2,025/mo
30 employees $2,370/mo $2,760/mo $4,050/mo
45-50 employees $3,752.5/mo $4,370/mo $6,412.5/mo

*Illustrative costs for different plan tiers. Actual cost will vary based on plan design, company details, and employee demographics. 

What is the average cost breakdown for different types of employee benefits? 

In a small business employee benefits plan, various coverage options can significantly impact costs. For instance, life insurance typically ranges from $62.50 to $125 per employee per month, while health and dental coverage can cost between $300 and $400. 

Estimated monthly costs for key group health benefits

Benefits Estimated monthly cost per employee General coverage limit
Health and dental coverage $300 – $400 Up to $100,000 in medical expenses
Life insurance $62.50 – $125 $100,000
Disability insurance $62.50 – $125 40-70% of employee’s salary
Extended health benefits $258 $25,000 – $50,000 annually
Vision care $19.50 $200 – $400 every two years
Prescription drug coverage $83.33 $5,000 – $10,000 annually
Mental health and wellness coverage $50 $1,000 – $5,000 annually

Read more about the costs and premiums for group health plans

What are employee benefits for small businesses?

Employee benefits are non-wage benefits or compensations given to employees in addition to their regular salaries. For small businesses in Canada, these benefits typically include health insurance, dental care, life insurance, disability coverage, and other perks like mental health support and retirement plans.

Learn more about employee benefits in Canada

Should small businesses offer employee benefits?

Yes, offering employee benefits can significantly improve employee satisfaction and retention. In a competitive job market, employees often prioritize employers who provide comprehensive health and wellness benefits over those who do not.

According to a survey by Benefits Canada, 79% of employees would prefer employee benefits over an appraisal, and the most preferred benefit is healthcare insurance.

Read about the importance of group health insurance in Canada

What does a small business group benefits package cover?

A small business group benefits package typically covers health, dental, vision care, life insurance, disability insurance, prescription drugs, and mental health services.

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What are the most common health benefits offered to small business employees?

The most common benefits include health and dental insurance, and life and disability insurance. Employers often provide extended health benefits like vision care, mental health support services, and prescription drug coverage.

  • Health insurance: Provides coverage for medical expenses, including hospital visits, surgeries, and prescription medications
  • Dental insurance: Covers dental care services such as routine check-ups, cleanings, and necessary dental procedures
  • Vision care: Offers coverage for eye exams and financial assistance for eyewear like glasses or contact lenses
  • Disability insurance: Replaces income for employees unable to work due to illness or injury, supporting them during recovery
  • Life insurance: Provides financial protection to beneficiaries in the event of an employee’s death, ensuring their loved ones receive support
  • Mental health coverage: Offers access to mental health services, including counseling and therapy, promoting overall emotional well-being
  • Prescription drug coverage: Helps cover the cost of prescribed medications, making necessary treatments more affordable for employees

What will my small business employee benefits package look like?

When it comes to providing employee benefits for small businesses, offering benefits such as health insurance, which provides extended coverage for medical expenses, and dental insurance, covering 80% of basic dental care, can positively impact your workforce’s health. 

Additionally, options like vision care, which includes an annual eye exam and $200 towards eyewear, and disability insurance, offering 60% of salary after 30 days of disability, are crucial for financial security. 

Below is a breakdown of the key benefits and their corresponding coverage details, showcasing the value of investing in group insurance for your employees:

Small business employee benefits plan coverage details*

Benefits Coverage details
Health insurance Extended health coverage
Dental insurance 80% coverage for basic dental care
Vision care Annual eye exam + $200 towards eyewear
Disability insurance 60% of salary after 30 days of disability
Life insurance $50,000 coverage
Critical illness insurance Lump sum payment upon diagnosis
Health Spending Account $500 annually for health-related expenses
Emergency medical travel Coverage for medical emergencies abroad

*Illustrative coverage details for a sample small business employee benefits plan. Actual coverage details will vary.

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How much does the cost of an employee benefits plan vary based on the industry?

In Canada, the cost of employee benefits can vary significantly across different industries, with estimates ranging from $7,500 to $25,000 per employee annually

How much do group benefits cost employers?

The average annual premium for group insurance typically varies based on the size of the business. For smaller businesses, the cost usually ranges from 15% of payroll, reflecting their more limited risk pools and potentially higher per-employee costs. 

In contrast, larger companies may see premiums as high as 30% of payroll, due to their larger risk pools and more extensive benefits offerings.

However, there are cost-effective options available for small businesses, where group insurance plans can be customized to fit tighter budgets, costing as little as 1% to 5% of payroll. This flexibility allows small employers to provide valuable benefits without overwhelming their financial resources.

How much does health insurance cost for a small business per employee in Canada?

On average, the cost of employee benefits in Canada can range between $80-$200 per month per employee for a very basic plan, $100-$250 per employee for a standard plan, and $150-$350 for an enhanced pla. These are indicative costs only and they will change based on the coverage a small business chooses and the plan details.

Indicative costs for basic, standard, and enhanced group health plans

Benefits Basic Plan Standard Plan Enhanced Plan
Health Coverage
Employees – Single $50/month $70/month $92/month
Employees – Couple $98/month $130/month $180/month
Employees – Family $110/month $170/month $195/month
Dental Coverage
Employees – Single $30/month $60/month $81/month
Employees – Couple $100/month $128/month $140/month
Employees – Family $170/month $200/month $250/month
Pooled Benefits
Life Insurance & AD&D $12/month ($25,000) $18/month ($50,000) $26/month ($75,000)
Critical Illness Not selected Not selected Not selected
Long-term Disability Not selected Not selected Not selected
Total Monthly Premium $3,000/month $4,100/month $5,500/month
Cost per Employee $150/month $205/month $275/month

*This table provides an indicative cost for a small business that has 20 employees.

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Do employers pay for benefits in Canada?

Yes, employers in Canada typically bear the responsibility for funding group health benefits. This can be structured in different ways, including paying for the full cost of the benefits themselves or establishing a cost-sharing arrangement with employees.

By providing these benefits, employers can enhance their recruitment and retention efforts, making their compensation packages more attractive.

Do employees ever pay for group health benefits in Canada?

Absolutely. While employers often cover a substantial portion of group health benefits, employees may also contribute to the costs. A common cost-sharing model is an 80/20 split, where the employer covers 80% of the plan costs, leaving employees responsible for the remaining 20%. 

Which are the cheapest group benefits plans available for small businesses?

Group health benefits plans can start as low as $79 per employee, depending on the level of coverage and the specific options selected. These lower-cost plans may include basic coverage, such as essential health and dental services, but they can be customized to include additional benefits as needed. 

Small businesses can explore various options to find a plan that meets their budget while still providing valuable protection for their employees.

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How much do benefits cost per paycheck in Ontario?

In Ontario, if an employee earns an annual salary of $54,630, the cost of benefits would range from roughly $5,463 to $13,658 per year. This amounts to approximately $454 to $1,138 per month or $227 to $569 per paycheck (based on bi-weekly pay).

What factors affect employee benefit costs for small businesses?

Factors like employee demographics, type of coverage, claims history, location of business and its industry affect the cost of employee benefits for small businesses.

  • Business size and workforce demographics: The number of employees and their ages, health conditions, and family size influence benefit costs, as larger or older workforces typically result in higher premiums
  • Type and extent of coverage: Offering more comprehensive benefits, such as dental, vision, disability, or prescription drug coverage, increases costs compared to basic health plans
  • Location and industry: Regional healthcare costs and the industry in which the business operates can impact benefit expenses. Some regions or industries may face higher premiums due to risk factors or local healthcare costs
  • Claims history: A company’s history of claims affects its premiums, as frequent or high-value claims may lead to increased costs in subsequent years
  • Plan design and contributions: The way a plan is structured, including deductible amounts, co-pays, and employer-employee contribution splits, plays a key role in determining the overall cost of benefits

How can small businesses lower the costs of employee health benefits?

Managing employee health benefits can be challenging for small businesses in Canada, however, by reducing prescription drug costs, and by incorporating government programs, small businesses can offer competitive benefits while keeping expenses under control.

Here are a few things small businesses can do to manage the costs of employee benefits:

  • Cap prescription drug costs: Implementing caps on drug coverage or exploring hybrid spending accounts to manage rising prescription drug costs
  • Incorporate virtual healthcare: Virtual consultations are cost-effective, improving access to care and reducing overall healthcare expenses
  • Leverage government programs & tax credits: Take advantage of tax credits and government initiatives that support small businesses in offering employee health benefits
  • Invest in preventive care: Wellness programs reduce long-term healthcare costs by promoting healthier lifestyles and preventing chronic diseases
  • Pooled benefits: Small businesses can pool their employee benefits plans with other businesses, allowing them to share risks and lower premium costs. This collective approach allows small businesses to offer comprehensive health benefits while sharing the cost burden with other companies

Are employee benefits tax-deductible in Canada?

Yes, group benefits provided by an employer are generally tax-deductible in Canada. Employers can deduct the cost of providing group benefits, such as health and dental insurance, from their business income when calculating their taxable income.

It’s important for employers to consult with a tax professional or review the CRA guidelines to ensure they are complying with the specific rules and requirements for deducting group benefits.

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Frequently Asked Questions

Which employee benefit do employees value the most?

Health and dental insurance is often considered the most valued benefit among employees.

Which are the best small business employee benefits insurance companies?

Top providers include Manulife, Sun Life Financial, and Canada Life, recognized for their comprehensive offerings and competitive pricing.

How do employee demographics impact the cost of group benefits?

Employee demographics significantly affect group benefit costs; younger employees generally incur lower healthcare costs compared to older employees, which influences premiums.

What is the average cost per employee for benefits in Canada?

On average, employee benefits can cost between 15% and 30% of payroll, including both mandatory and supplemental benefits.

How can small businesses balance benefit costs with employee satisfaction?

Small businesses can balance benefit costs with employee satisfaction by offering flexible options that allow employees to choose benefits that suit their needs, promoting wellness programs to reduce long-term healthcare costs, and encouraging cost-sharing through copayments or deductibles. Focusing on key benefits like health and dental and regularly communicating the value of the benefits package can enhance employee appreciation and satisfaction.

What are the typical costs for a basic health and dental plan for small businesses?

Basic health and dental plans generally range from $80 to $200 per employee per month, depending on the coverage options selected.

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Best Small Business Employee Benefits Companies in Canada (2025)

Managing a small business is not an easy task. Between managing operations, juggling budgets, and building a stellar team, you already have a lot on your plate. But here’s the thing—keeping your best employees around takes more than just fun perks. 

A recent survey found that 73% of employees consider health benefits an essential factor when deciding to stay with a company. In 2024, the expectations for benefits packages have evolved beyond basic offerings, with employees seeking comprehensive health coverage, retirement plans, and wellness initiatives.

Our blog gives insight into the best small business employee benefits companies in Canada to stay competitive and support the workforce.

What are employee benefits for small businesses?

Small business employee benefits packages offer a wide range of health and wellness benefits, retirement savings to professional training programs that are not covered by provisional plans. These packages encompass a wide range of offerings designed to support the overall well-being and professional growth of employees. Some employers may provide Employee Assistance Programs (EAPs), Health Spending Accounts (HSAs), and various wellness benefits.

Below are some of the most common types of group benefits offered:

Provincial vs group health insurance in Canada
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What are some common employee benefits offered by small businesses in Canada?

Common employee benefits offered by small businesses in Canada include:

  • Health and dental insurance
  • Vision care
  • Life insurance
  • Disability benefits
  • Retirement savings plans (such as RRSPs)
  • Paid time off

Some businesses also offer wellness programs, mental health support, and flexible work arrangements as part of their benefits packages.

Which are the best small business employee benefits companies in Canada?

Blue Cross, Sun Life, Desjardins, Equitable Life of Canada, Green Shield, Canada Life, and Empire Life are some of the best companies offering employee benefits in Canada. Refer to the table below to see the strengths of each company and our ratings.

Company Best for… Rating
Blue Cross Travel coverage 5/5
Equitable  Standardized plan designs 5/5
Canada Life Extensive nationwide coverage 5/5
Sun Life High dental and vision coverage 4.5/5
Empire Life Price stability 4.5/5
Manulife Innovative and flexible plans 4.5/5
GreenShield Affordability and flexibility 4/5
Desjardins Paramedical coverage (physiotherapy, massage, chiropractors) 4/5

Learn more about employee benefits in Canada

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Best for travel coverage

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1. Blue Cross

Overview: Medavie Blue Cross three plans Entry, Essential, and Enhanced that are designed for businesses with at least two employees and have been operational for a minimum of six months. Eligible individuals include Canadian residents under 75, with full-time employees working at least 20 hours per week. 

Medavie Blue Cross emphasizes member well-being through robust plans that include no waiting periods for active employees. Their core benefits include life, accidental death and dismemberment, extended health coverage, along with dental and vision care. They also have additional benefits like health spending accounts, personal spending accounts and long-term disability.

PolicyAdvisor Rating: 5/5

What they cover

Core benefits:

  • Basic and dependent life insurance coverage
  • Accidental death and dismemberment
  • Extended healthcare
  • Prescription drugs 
  • Dental care
  • Worldwide travel insurance

Additional benefits:

  • Long-term disability
  • Health spending account
  • Personal wellness account

What we like:

  • Their HealthConnected plan includes a Health Risk Assessment and a robust Wellness Portal
  • With BluAdvantage, members can save up to 20% on medical, health, and wellness expenses
  • Their Connected Care service provides access to cutting-edge digital health solutions
  • Their 360° Total Care program offers Health Coaching and Chronic Disease Management for conditions like asthma, diabetes, hypertension, obesity, and more
  • The super-fast online enrolment process takes only a few minutes and is signed electronically
  • Comprehensive coverage for Cognitive Behavioural Therapy, along with live, online, and text-based counseling

PolicyAdvisor Rating

Best for standardized plan designs

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2. Equitable Life

Overview: Equitable offers group benefits that really stand out for businesses. Their plans can cover everything from dental and vision care to life insurance and even mental health support. Their health coverage includes up to 80% for prescription drugs and paramedical services like physiotherapy, chiropractic, and massage therapy. Employees also get access to dental plans covering up to 100% of basic services, along with mental health support.

PolicyAdvisor Rating: 5/5

What they cover:

  • Vision
  • Hospital accommodation
  • Paramedical practitioners
  • Disability management
  • Healthcare spending account
  • Life accident and critical illness
  • EZBenefits for small business (A mix of life, health and dental coverage)
  • Dental care
  • Taxable Spending Account (TSA)

What we like:

  • 24/7 access to medical professionals via Virtual Healthcare (Dialogue).
  • Counseling services through phone, web, or in-person via the Employee and Family Assistance Program (Homewood Health).
  • Online wellness resources for health and financial challenges (Homeweb).
  • Self-guided mental health support using Cognitive Behavioural Therapy.

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Best for extensive nationwide coverage

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3. Canada Life

Overview: Canada Life’s group benefits plan for small businesses, known as Freedom at Work, offers tailored benefits and savings packages for businesses with up to 75 employees. It covers essentials like prescription drugs, dental, vision, paramedical services, and disability. The plan is affordable, typically costing around 1-5% of payroll, and helps businesses attract and retain top talent while supporting employees’ health and financial well-being​.

PolicyAdvisor Rating: 5/5

What they cover:

  • Life and accident insurance
  • Critical illness 
  • Disability management program
  • Prescription drugs
  • Dental care
  • Health care spending accounts

What we like: 

  • Provide flexible options that fit your organization.
  • A dedicated service team with in-depth knowledge of your specific benefits plan.
  • Comprehensive digital experience for submitting and tracking claims, along with personalized notifications about your benefits.
  • Access to digital tools for health information, participate in individual wellness challenges, and connect with a virtual health coach.

PolicyAdvisor Rating

Best for high dental and vision coverage

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4. Sun Life

Overview: Sun Life’s, SunAdvantage group benefits plan is designed for small businesses with 3 to 49 employees, offering a customizable and affordable benefits package. The coverage amount for the plan ranges from $25,000-$50,000. Their standard coverage includes life insurance, dependent life insurance and accidental death and dismemberment insurance. While the additional options include dental care, health spending account, short and long-term disability and more.

To be eligible the plan requires permanent employees if they actively work at least 20 hours per week; temporary employees working at least 20 hours per week, for a minimum of 12 months. They have a compliance support which ensures legal requirements are met, making Sun Life a valuable partner in protecting and empowering small business workforces.

PolicyAdvisor Rating: 4.5/5

What they cover

Standard coverage

  • Life insurance 
  • Dependent life insurance
  • Accidental death and dismemberment (AD&D) insurance

Additional options:

  • Short-term disability and long-term disability
  • Extended health care
  • Dental care
  • Health spending account
  • Employee assistance program
  • Stress management and well being
  • Critical illness insurance

What we like: 

  • Flexible benefit plans tailored to meet employee needs while staying within budget.
  • Clear, easy-to-understand communications to help employees maximize their benefits from day one.
  • A comprehensive range of insurance products designed to help small businesses achieve long-term financial and health security.
  • Fast claims processing with direct deposits into employees’ bank accounts within 24 to 48 hours for approved claims.
  • User-friendly administrative tools like sponsor kits, a dedicated website, and toll-free access to a personalized customer service administrator.

PolicyAdvisor Rating

Best for price stability

AM Best Rating N/A

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5. Empire Life

Overview: Empire Life offers flexible group benefits designed to support the well-being of employees and their families. Their plans include a range of health, dental, life, and disability coverage options, customizable to fit your company’s unique needs.

With a strong focus on affordability and ease of administration, Empire Life provides valuable tools like online benefits management, helping employers streamline processes. Plus, employees can enjoy reliable access to health services, making it a comprehensive solution for businesses looking to prioritize employee care.

PolicyAdvisor Rating: 4.5/5

What they cover:

  • Accidental death and dismemberment coverage (AD&D)
  • Life insurance (basic and dependent) 
  • Critical illness insurance
  • Extended healthcare (Paramedical, drug, vision, travel emergency assistance)
  • Dental
  • Employee Assistance Program (EAP): Assist Now
  • Telemedicine

What we like:

  • Offers unique and flexible solutions, such as a $7,500 drug pooling plan and incidental health expenses
  • Continually evolving with digital connectivity and innovation
  •  Known for their personal touch and commitment to customer service
  • Their cost-effective innovative and flexible products such as mental health navigator and teladoc services
  • Their Retirement and Savings Tool helps assess whether you’re on track to reach your savings goals and effectively plan for retirement
  • Quick claim submissions with Equitable EZClaim via secure web portal or mobile app.Provides long-term price stability in health and dental benefits.

PolicyAdvisor Rating

Best for innovative and flexible plans

AM Best Rating N/A

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6. Manulife

Overview: Manulife’s group benefits are a great option for businesses looking to offer comprehensive health and wellness coverage to their employees. They provide a range of services, including health, dental, vision, life insurance, disability and critical illness coverage.

Their health plans can cover up to 80% of prescription drug costs and offer $350 annually for paramedical services like physiotherapy. With flexible options, Manulife makes it easy to customize a benefits package that fits your team’s needs perfectly. 

PolicyAdvisor Rating: 4.5/5

What they cover:

Core benefits:

  • Prescription drugs
  • Vision
  • Dental
  • Healthcare spending account
  • Basic accidental & dismemberment insurance
  • Employee & family assistance program
  • Paramedical practitioners

Additional benefits:

  • Optional life insurance
  • Long-term (mandatory) enhanced long-term with COLA (optional)
  • Optional accidental & dismemberment insurance

What we like:

  • Provides centralized and easy access to all of Manulife’s pharmacy-related resources and programs including industry-leading drug lookup tools.
  • Allows employees to use web-enabled devices to easily submit claims, review recent claims/claim details.
  • Specialty Drug Care Program that manages specialty drugs to save costs and improve health outcomes
  • DrugWatch, a rigorous oversight program designed to ensure plan sponsors are getting value for the dollars they spend as drug costs increase.

PolicyAdvisor Rating

Best for affordability and flexibility

AM Best Rating N/A

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7. GreenShield

Overview: GreenShield offers the Honeybee Select group benefits plan for small businesses with fewer than 25 employees. This digital solution provides essential coverage options, including health, dental, and travel insurance, along with mental health support from Inkblot Therapy.

Employers can choose from three standardized plan designs (Plan 1, Plan 2, Plan 3), with a guaranteed quote available within 24 hours. The plan also includes add-on allowance accounts for customizable coverage options, making it an innovative solution for small businesses new to employee benefits.

PolicyAdvisor Rating: 4/5

What they cover:

  • Pet insurance (Pet grooming, Pet food)
  • Health Assist ZONE plans (Routine medical and dental expenses, emergency medical travel protection)
  • Health and dental insurance
  • Vacations, volunteer work, adventure & sports activities
  • Fitness, sports & equipment benefits
  • Travel insurance
  • Claims management assistance
  • Charitable donation and charitable leave expenses

What we like:

  • Customizable plans that align with your company’s needs, with scalable pricing to grow with your organization.
  • Health Care Spending Accounts (HCSA) allow for employee-directed spending without premiums.
  • Transparent “pay for what you use” model through their Administration Services Only (ASO) feature.
  • Lifestyle benefits for modern workplaces, like fitness and wellness programs.

PolicyAdvisor Rating

Best for paramedical coverage

AM Best Rating N/A

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8. Desjardins

Overview: Desjardins’ customizable solution, PerformPlus, is designed for companies with 3 to 49 employees, providing options such as life, disability, extended healthcare, and dental care insurance. Their PerformPlus plan generally ranges from $420 to $580 per month per employee, depending on the specifics of the coverage. 

Plan is available for small businesses employing permanent staff working at least 10 hours per week, as well as temporary employees on fixed contracts of 35 hours per week or with one year of service. Whether you’re looking to enhance employee well-being, increase satisfaction, or attract top talent, their group insurance plan supports the health of both your employees and your organization. 

PolicyAdvisor Rating: 4/5

What they cover

  • Life insurance 
  • Accidental death and dismemberment insurance
  • Critical illness insurance
  • Health insurance
  • Health Spending Account (HSA) and wellness account
  • Coverage for expats and temporary residents
  • Gender affirmation surgery and procedures
  • Dental care
  • Travel insurance and trip cancellation insurance
  • Short and long-term disability insurance
  • Vision care options

What we like:

  • Their Health is Cool 360° online platform offers reliable health information, prevention tips, and treatment advice
  • They have a Health Risk Assessment in place that identifies organizational health risks and provides personalized reports to employees
  • The Health PACT grants employees access to licensed healthcare professionals for early chronic illness intervention
  • Their Assistance Programs provide professional support for employees and managers during difficult times
  • They provide Insurance Conversion options to allow employees to switch to Health Track Insurance® when leaving or retiring.
  • They have tools to control drug costs, including a cost simulator
  • Gender affirmation coverage includes surgeries and treatments not covered by public health insurance, plus a workplace support kit
  • The Omni mobile app allows employees to submit claims, access wellness resources, and manage retirement plans on their devices
  • IntelliFlex automates employee enrollment and streamlines plan management for easier administration

Group health companies cost comparison

Category Blue Cross Desjardins Equitable Empire Life Green Shield Sun Life Manulife Canada Life
Health
Drug maximum – Entry: $3,000

-Essential: $5,000

-Enhanced: $20,000

An amount of your choice between $2,000 and $15,000 per insured per year, in increments of $1,000 -Bronze: $5,000/year 

-Silver- $25,000/year.

-Gold: $100,000/year 

-Platinum: $100,000/year

Varied by plans -$3,000/person

-$10,000/person

Vary depending on the drug

formulary selected

$2,000 per year – the maximum you pay annually. Coverage then increases to 100% Varies
Drug coinsurance 80% 80% 80% 80% 80% 50% to 100% 100% 100%
Paramedical services Varies Varies -Bronze: No coverage.

-Silver: $300/practitioner/year

-Gold: $500/practitioner/year

-Platinum: $500/practitioner/year

$500 -$300/practitioner -$500/practitioner $100 to $1,000, or $1,250 combined $350 maximum per calendar year for each practitioner Varies
Vision care (frame lenses and eye exams) – Entry: No coverage

– Essential: $200 per 24 months for frames and lenses

-Enhanced: $300 per 24 months

Maximum: $100 to $500 in increments of $25, in any 12-month period No coverage in bronze and Silver.

-Gold: $200/year 

-Platinum: $250/year

$200 every 24 months – $150/24 months/person 

– $250/24 months/person

$75 to $500 $200 per 24 months -$200 every 24 months -$250 every 24 months
Vision coinsurance 80% Varies 100% 80% 80-100% 100% 70-100%
Dental
Basic dental maximum – Entry: $1,000

-Essential: $1,500

-Enhanced:$1,500

From $500-

$4,000,

or unlimited

No coverage in bronze

-Silver: $1,500/year

-Gold: $2,000/year

-Platinum: $2,500/year

$1500 -$750/person – $15,00/person $2,500 $3,000 per person, per calendar year Varies based on the province of your residence
Basic dental coinsurance 80% Varies 70-90% 80% 80% 50% to 80% 80% 80%
Recall exam Three choices: Every 6, 9 or 12 months Varies Varies 1 every 6 months Varies Varies Yes
Pooled benefits (as requested)
Life insurance Entry: $25,000

– Essential and enhanced: $50,000

–Minimum $10,000

–Maximum $1,000,000 (in combination with plan member’s optional life insurance)

-Bronze and silver: $25,000 

– Gold: $50,000

– Platinum: $75,000

$30,000 Yes -$20,000 to $750,000 Up to $1,000,000 100% of annual salary to a maximum of $1,250,000
Accidental death and dismemberment (AD&D) – Entry: $25,000

– Essential and Enhanced: $50,000

Maximum $1,000,000 Same as life insurance $30,000 Up to $10,000 for repatriation and rehabilitation Up to $50,000 Same as life insurance
Short-term disability benefits Varies Up to $2,000 (without evidence of insurability) Varies Varies Up to $1750 per week (20+ lives) Depends on the plan 100% of your weekly salary for the first week; 75% for the next 15 weeks
Long-term disability benefits – Entry: No coverage

-Essential and Enhanced- $4,000

Depending on group size, up to $14,000 (with evidence of insurability) Varies Varies Up to $12,000 per month $12,000 $25,000
Added benefits
Hospitalization – Essential: No coverage.

– Essential and enhanced: $200 per day for semi-private and private rooms

Semi-private 100% coverage for semi-private accommodation Semi-private or private 100% coverage for semi-private or private room Semi-private room
Health Spending Account (HSA) Yearly allocation choices of $200, $500 or $700 $250 per plan member Plan sponsor choice Varies based on admin fees As requested Same number of credits for all employees -Full-time employees: $100/year 

-Part-time employees: $50/year

Varies based on admin fees
Travel Insurance -$5,000,000 per person, per incident in all 3 plans. – Medical emergency expenses: 100% up to a lifetime maximum of $5 million Varies based on the travel benefits Not specified; varies by plan Yes Varies Varies Varies

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How much does a small business employee benefits package cost in Canada?

Employee benefits packages for small businesses typically cost between $80 and $350 per employee per month. However, the costs can greatly vary depending on the number of employees, the type of coverage offered, employee demographics, and other factors.  

Average monthly cost per employee for a small business group health plan

Plan Type Average cost of coverage per employee per month
Basic $80/mo
Standard $92/mo
Enhanced $135/mo

*Please note, these are average costs for one employee per month, pricing may vary based on factors like company demographics, employee’s age, health status, etc.

Read more about the cost of small business group health insurance in Canada

Who pays for group health benefits in small businesses?

In small businesses, group health benefits are typically shared between the employer and employees. The employer usually pays a significant portion of the premium, while employees contribute a part of the cost through payroll deductions. 

The employer’s contribution is often designed to make the benefits affordable and competitive. The exact cost-sharing arrangement can vary depending on the business’s budget and the specific health insurance plan. 

In some cases, employers may choose to cover the full premium as an added benefit to attract and retain employees. The contribution structure and coverage options are customizable based on the business’s needs.

How can small businesses provide employee benefits while managing costs?

Small businesses can manage employee benefits costs by choosing cost-effective health plans, offering a mix of fully insured and self-funded options, and sharing premium costs with employees.

They can also explore wellness programs, which can help reduce long-term healthcare expenses, and look for group benefit plans that provide comprehensive coverage at competitive rates.

How to choose the best employee benefits plan for small businesses in Canada?

In general, choosing the best employee benefits plan for small businesses in Canada involves several critical steps. You need to start by assessing employee requirements through surveys to understand what they value most in a benefits package. Once you have this information, set a budget that reflects what your organization can afford while ensuring financial stability. 

Consider offering flexible benefits plans, which allow employees to select the benefits that resonate with them, fostering satisfaction and retention. Prioritize core benefits like health insurance and retirement plans, as these are often essential to employees. 

At PolicyAdvisor, our insurance experts are here to help you find the best employee benefit plans. They’ll guide you through coverage options, premiums, and additional benefits you can offer your employees. Trust us to find the best fit for your business! Schedule a call with our team today!

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Frequently asked questions

Who is eligible for employee benefits in Canada?

Eligibility for employee benefits typically requires employees to be Canadian residents or temporarily working abroad, provided their Government Pension Plan and Health Insurance remain active. Employers may also set specific criteria, such as length of service or job classification, to determine benefit eligibility within their organizations.

How much do employees pay for benefits in Canada?

In Canada, employees typically contribute between $1,500 and $4,000 annually towards their benefits. These contributions can vary based on the specific benefits package offered by the employer, including health, dental, and other coverage options, influencing the overall cost for both the employee and the organization.

What benefits do employees value most in Canada?

In Canada, employees highly value health and dental coverage, retirement plans, and work-life balance. Additionally, paid time off for new parents is a significant benefit. These offerings enhance overall job satisfaction and contribute to a positive workplace culture, making them essential for attracting and retaining talent.

What are the mandatory benefits for employees in Canada?

In Canada, mandatory benefits for employees include the Canadian Pension Plan (CPP), Employment Insurance (EI), and workers’ compensation. These benefits ensure financial security for workers during retirement, provide support during periods of unemployment, and offer protection in case of workplace injuries, forming a critical safety net for all employees.

Can an employer force you to take benefits in Canada?

In Canada, employers cannot compel employees to accept benefits. However, they can require certain benefits as part of the employment package, particularly if outlined in the employment contract or collective agreements. This ensures clarity and consistency in the benefits offered while allowing employees to make informed choices.

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What Is Group Health Insurance and How Does It Work?

A group health insurance is a type of health coverage typically offered by an employer or organization to a “group” of people—the employees or members of the organization. Group health insurance is typically cheaper for members of the insured group as compared to separate individual plans since the insurer’s risk is spread across a large number of participating members of an organization. It is an important part of an employee benefits program and employers should know how group health insurance works in Canada. 

Whether you’re an employer who is looking to offer group health insurance to your employees in Canada or someone who is simply curious about how an employee benefits plan works in Canada, this blog is for you! 

What is group health insurance? 

Group health insurance, also known as a group plan or employer-sponsored coverage, is a type of health insurance that an employer purchases and offers to its employees and their dependents. This group of people is accordingly covered under a single policy, offering benefits such as:

  • Dental and vision care
  • Hospitalization
  • Prescription drugs
  • Chronic disease coverage
  • Other healthcare services

Employers or organizations usually negotiate the terms of the insurance policy and may subsidize part or all of the premium costs for their employees or members. Group health insurance is typically offered to all full-time or part-time workers as part of an employee benefits program.

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How does group health insurance work in Canada? 

Group health insurance, also called group benefits or employee health benefits, provides employees with access to comprehensive healthcare coverage and is offered by an employer or an organization. The employer is the primary policyholder of a group health plan which covers all or some of the employees in an organization. 

Most insurers require 80% to 100% participation in a group health plan depending on the number of employees.

Group health insurance policies in Canada typically work in the following way:

  1. Employer sponsorship: Employers choose a plan they want to offer to their employees. The employer negotiates the terms of the insurance policy with an insurance provider and may subsidize part of the premium costs for their employees. Within the plan, the employer can choose to add various types of benefits such as  health, dental, vision and prescription drug coverage, plus optional access to life insurance, disability and family assistance plans.
  2. Employee enrolment: Employees can choose to enroll in or decline a group health insurance plan during the specified annual enrollment period. They have the option to choose from a few plan options and coverage levels. To mitigate risk across a larger group and prevent adverse selection, most insurers require a minimum 70% participation. 
  3. Premium payments: The premiums are typically split between the employer and employees. Employers pay directly to the insurance company and deduct the employee’s contribution through payroll. 
  4. Access to dependents: Employees can add family members and current and future dependents to the group health insurance plan at an additional cost
  5. Employee usage: Employees can thereafter claim on the benefits as needed. Pharmacies, dentists, as well as health and vision practitioners directly bill the insurance company for covered expenses
  6. Annual renewal: Employers work with the insurance company for annual renewal and repricing of the insurance contracts
  7. Administration: The administration of group health insurance plans can vary. Some employers choose to manage the plans themselves, while others may contract with insurance companies or third-party administrators to handle claims processing, customer service, and other administrative tasks.

Group health insurance is cheaper than individual policies. This is simply because of the higher number of participants in the group health insurance plan, making it one of the most affordable health care policies available in Canada. One of the key implications of group health insurance is that healthier individuals effectively subsidize the costs of those who require more medical care.

Check out a variety of group health insurance types available for Canadians

Employee enrollment process for group health insurance

To ensure a smooth administration of group health coverage, employers should follow the steps mentioned below:

  • Inform the employees about the available health plans, coverage options, and enrollment period
  • Employees should select their plan and if they want to add dependents, if applicable
  • Employees will have to fill out a form with the designated coverage options as well as their personal information
  • Employees will submit the forms to the employer or HR department within the pre-discussed timeframe
  • Once the enrollment procedure and verification are complete, employees will receive confirmation and health insurance cards

Employee eligibility criteria for group health insurance in Canada

  • Employment status: Employees must be actively employed, either full-time or part-time, by the organization offering the group plan. Depending on the plan’s requirements, temporary, contractual, or seasonal workers may also be eligible
  • Minimum hours worked: Employees typically need to work a minimum number of hours per week, often 20-30 hours, to qualify for the group plan. Some plans may have different minimum-hour requirements
  • Waiting period: New employees may need to complete a waiting period, often 3 months, before becoming eligible for coverage. The waiting period allows the employer to confirm the employee’s employment status
  • Residency requirements: Employees must be Canadian citizens or permanent residents to be eligible for the group plan. Some plans may also accept employees with valid work permits
  • Age limits: Group plans typically cover employees up to the age of 65 or 70. Dependent coverage may be available for spouses and children up to a certain age, often 19-25 years old
  • Pre-existing conditions: Group plans cannot exclude or limit coverage for pre-existing medical conditions. Employees are covered for pre-existing conditions from the start of the plan
  • Minimum group size: Employers must have a minimum number of eligible employees, often 3-10, to qualify for a group health insurance plan

How is group health insurance different from individual plans?

While group health insurance is purchased by an employer and covers the employees of an organization, an individual health insurance plan, as the name suggests, is purchased independently by an individual for their own needs. Individual health insurance plans, also known as personal health insurance or private medical insurance, vary based on the individual’s age, medical history, and lifestyle (whether they’re smokers etc.). 

Difference between group health insurance and individual health insurance

Benefits of group plans for employers

Offering group health benefits is an effective way to promote employee well-being and morale. It also:

✅ Helps organizations attract and retain talent 

✅ Can be written off as a business expense, hence saving tax for the organization

✅ Encourages employees to seek preventative care, promoting a more healthier and productive workforce

✅ Depending on the location of the organization, offering health insurance coverage to employees may be required by law. Providing group health insurance ensures compliance with applicable regulations

Group health benefits for employees

With a group health insurance plan in Canada, employees also get:

✅Access to a wider range of medical services like dental care, vision care, prescription medication, emergency travel, life insurance, etc.that are not covered under provincial plans

✅ Lower premiums as compared to other individual plans

✅ The option to add family members and current and future dependents to their policy

✅Coverage for pre-existing medical conditions

✅Incentives for preventive care and wellness programs, motivating employees to adopt healthier lifestyles 

What do employee benefits cover?

Group health policies and employee benefits, although distinct, are often used interchangeably. A group health insurance plan is part of an employee benefits package, offered by employers to their employees. While group health insurance is a significant component of employee benefits, it is not the only one. Other common employee benefits may include life insurance, disability insurance, paid time off (such as vacation days and sick leave), wellness programs, and more.

Depending on the plan an employer chooses, group employee benefits typically include a variety of health and other non-medical benefits.

Coverage Category Covered Services & Items
Healthcare – Private hospital coverage
– Medical expenses
– Medical equipment
– Some elective surgeries
– Care homes and nurses
Vision care coverage – Eye exams
– Glasses
– Contacts
Dental coverage – Teeth cleanings
– X-rays
– Cavity fillings
– Orthodontics (braces)
Prescription drugs Generic and branded medications
Health spending account A fixed annual amount that employees can spend on any item or service that improves their health
Employee assistance and wellness Access to preventative health assessments and wellness resources including clinical counselling
Virtual access Some insurers have online access to doctors and health service providers which an insured employee can avail of
Hospitalisation Access semi-private rooms upon hospitalization and ambulatory care
Medical emergency travel – Coverage if you have a medical emergency while travelling
– Trip cancellation/interruption
Critical illness A lump sum payment if you are diagnosed with a critical health issue
Life insurance A lump sum payment if you pass away from natural or accidental reasons
Short & long-term disability insurance Salary replacement if you become disabled and cannot work for a short or long period of time
Accidental death and dismemberment (AD&D) insurance Financial assistance if you have an accidental death, are dismembered, or lose your sight or upon loss of use of limbs. This would be in addition to a life insurance payment

How can I enroll in group health benefits?

Once hired, you need to enroll in the group health insurance plan within a deadline. If this deadline is missed, you might have to wait until the annual enrollment window is open. Typically, a new employee who joins after the enrollment period is over has to wait for a period of 30-90 days before they can get group health benefits. This period is designed to ensure a degree of commitment from the employee to the employer before benefit enrollment.

Some group health insurance plans offer supplemental benefits like dental and vision care. During the enrollment process, you can choose any additional benefits you might want and add your family members and/or dependents.

Who pays for group health insurance?

Different organizations have different rules when it comes to paying group health insurance premiums. Generally, there are three ways in which the premiums for group health insurance are paid. These are: 

  1. Employer-sponsored plans: The employer pays the entire cost of the group health benefits plan and the employee is not expected to contribute.
  2. Cost sharing with employees: An employer and their employees split the premium costs at a predefined rate. Commonly used splits are50 percent each or 70 percent by the employer and 30 percent by the employee. These arrangements can differ depending on the specific plan and the agreements between the employer and their employees.
  3. Employee add-on costs: If employees want to add dependents or get an advanced plan with additional benefits, they have the option to pay the extra premium

How much do group health plans cost?

The cost of a group health plan varies depending on the type of package an employer purchases with options such as basic, advanced, premium offering different levels of coverage. Each package offers different coverage and depending on who is covered, the premiums can vary. For small businesses, a benefits plan can cost about 5-15 percent of the total payroll on an annual basis. 

In the following table, we’ve included representative average premium costs for a group health insurance plan based on who is covered, the plan type, and coverage options: 

Coverage type Benefits offered Premium
Basic
  • Prescription drugs coverage – 70% up to $1,000
  • Health practitioners – $250 combined
  • Counselling services – $250 combined
  • Eye exams – $60 per person
  • Travel insurance – Unlimited number of trips for 90 days, $5 million coverage
  • For individuals: $35 / month
  • For couples: $61 / month
  • For families: $80 / month
Advanced
  • Prescription drugs coverage – 80% up to $3,000
  • Health practitioners – $350 combined
  • Counselling services – $350 combined
  • Vision care – $150 per person
  • Travel insurance – Unlimited number of trips for 90 days, $5 million coverage
  • For individuals: $75 / month
  • For couples: $132 /month
  • For families: $175 /month
Premium
  • Prescription drugs coverage – 100% up to $6,000
  • Health practitioners – $400 combined
  • Counselling services – $400 combined
  • Vision care – $300 per person
  • Travel insurance – Unlimited number of trips for 90 days, $5 million coverage
  • For individuals: $137 / month
  • For couples: $244 / month
  • For families: $324/month

Example of group health insurance

Sun Life Financial Corporation is a reputable group health insurance provider in Canada with an enormous base of trusted customers across all provinces. Sun Life offers a comprehensive range of benefits and includes extended features, including:

  • Extended Health Care (EHC) and dental
  • Vision care
  • Hospitalization coverage
  • Chronic illness
  • Prescription drugs

With over 2,700 employees across the country and thousands of support communities, Sun Life has helped employers provide comprehensive coverage to their employees. 

Here are a few things that we like about Sun Life Financial Corporation:

  • Employers can easily track and monitor an employee’s health insurance details through the My Sun Life mobile application
  • Sun Life provides Lumino Health Virtual Care, which provides individuals with access to reputed physical and mental healthcare professionals throughout Canada
  • They provide access to a plethora of digital tools for hassle-free onboarding and management of new candidates

Find out more about how group health insurance can be converted to individual plans

Featured small business health insurance partners

  1. Sun Life: Offers a range of group health insurance products that include digital tools to manage employee onboarding, benefits, reports, billing statements, and more
  2. Canada Life: Offers health, dental, life, disability insurance, and more
  3. Manulife: Offers AD&D, health, dental, disability, and more
  4. Desjardins: Delivers innovative group health insurance offerings like the Manager Assistance Program, Health is Cool 360° Platform, and more
  5. Green Shield Canada:  Offer employee benefits solutions like the iBenefits platform, specialty care program, claims management assistance, etc

Read about how small businesses can offer health insurance perks to their employees

What are the coverage options and limitations of a group health plan?

Although group health insurance is by far one of the most affordable, comprehensive, and inclusive types of medical insurance in Canada, it does come with some limitations. These are: 

  • Limited customization
  • Employer dependency
  • Limited portability
  • Coverage gaps
  • Limited portability
  • Cost sharing (some costs are still paid by employees)
  • Taxable to the employees

Temporary hires, independent contractors, and retirees are often not covered under group health insurance in Canada. Employees who are on unpaid leave might also lose their group health benefits until they resume work. 

Group health insurance for the self-employed

While self-employed individuals don’t have access to traditional employer-sponsored group health insurance, there are a few options for obtaining group coverage:

  • Individuals can opt for professional association benefits if they’re a part of any trade organization
  • Self-employed individuals can enroll themselves as a dependent if their spouse’s company provides an employer-sponsored benefit
  • Some insurance providers offer group plans specifically designed for small businesses, including self-employed individuals

Considerations for self-employed individuals

When self-employed individuals consider enrolling themselves under a group health insurance plan, there are a few things that must be taken into consideration:

  • Eligibility requirements: Associations or small business groups may have minimum membership or employee requirements
  • Portability: Coverage is tied to the group plan, so it may not be portable if you leave the association or small business
  • Customization: Group plans offer less flexibility to customize coverage compared to individual plans

Where to find group health insurance plans?

Group health insurance plans are usually provided by employers or by an association. If your employer does not provide a group health insurance plan, you must check out group benefits provided directly by insurance companies.

Companies such as Sun Life, Canada Life, Desjardins, Manulife, etc., have developed the most comprehensive group health insurance plans that can be customized to suit your specific needs. You can also speak to a licensed and experienced insurance expert, such as those at PolicyAdvisor, to help you find the right group medical insurance policies.

What to do if you lose your group health benefits?

If you’re on the verge of losing your group health insurance benefits due to a job switch or any other reason, you may need to consider other options.

You may choose to continue your coverage out of your own pocket. Continuation of coverage can be a little expensive, and the paperwork for the transfer can be overwhelming. Another option is to convert your group health insurance into an individual plan.

Converting to an individual plan can be less expensive, and you can customize your policy to suit your needs, Additionally, there won’t be a need for new underwriting when you’re converting your policy.

How does coordination work in group health plans?

Coordination of benefits (COB) is a process used by health insurance companies to determine the order in which they pay medical claims when a person is covered by more than one health insurance plan. COB ensures smooth and consistent processing of medical claims when someone has more than one health insurance plan. The primary insurer pays first, and the secondary insurer covers any remaining costs, up to the total allowed amount. COB prevents overpayment and ensures fair coverage from all insurers and also reduces costs for the members.

The rules and processes for coordinated group health insurance benefits differ from one insurer to another. It is wise to read and understand a policy document or to speak to an expert to understand coordination of group health benefits. 

What are Administrative Services Only (ASO) plans?

An Administrative Services Only plan is a self-funded health insurance plan where an employer takes on the financial risk to cover the costs of the healthcare benefits offered to its employees. Instead of paying fixed premiums to an insurer, the employer directly covers the costs of employees’ medical bills, prescriptions, and other health expenses.

An employer offering an ASO plan hires an insurance company or a third-party administrator who processes claims, handles paperwork, and provides other administrative services on behalf of the employer.

ASO plans offer flexibility and customization options for employers, allowing them to tailor benefits to their employees’ needs and potentially save costs compared to traditional fully insured plans. However, they also carry the risk of higher financial liability if healthcare claims exceed expectations.

Choose the right group health insurance for your employees

If you’re looking for the right kind of group health insurance plan, our licensed insurance advisors will be happy to help! We’ll ask for some basic information about your business (industry type, number of employees, claims history, etc.) and will help you find the perfect plan for your organization and employees. 

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Frequently Asked Questions

Who is eligible for group health insurance? 

An employer/organization can choose to offer group health insurance to their full and/or contractual workers. 

Do employees pay for health insurance in Canada?

Employee benefit plans are typically offered as a perk and organizations pay most of the premium amount and offer these benefits on a cost-sharing basis.

Are group health plans mandatory in Canada? 

No, group health plans are not mandatory in Canada. They’re offered as a perk in most organizations and are helpful in attracting and retaining talent. 

What happens to my group health insurance coverage if I change jobs or leave my current employer?

Group benefits offered by an employer will end if you change jobs or leave an organization. However, if you are laid off your benefits may continue for a few weeks. In some cases, replacement coverage is also available if you apply within a certain time frame, usually between 60-90 days. 

How can I get the cheapest group coverage?

To get the cheapest group coverage for your employees, you can:

  • Compare different insurers and plans and choose the right coverage
  • Pool your benefits plans with other organizations 
  • Speak to an insurance expert to build a cost-effective plan for your organization

What is the minimum size for group health insurance?

Most insurers require a minimum of two participants in a group health benefits plan.

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Empire Life Employee Benefits for Small Businesses: A Comprehensive Review

Empire Life is one of Canada’s leading health insurers with nearly 100 years of experience in providing benefits solutions tailored to small businesses. Catering to companies with 2 to 19 employees, Empire Life provides a flexible BeneFit solution that allows business owners to customize their plans with various optional benefits. 

These include essential coverages such as basic life insurance, accidental death and dismemberment (AD&D), and dependent life insurance, alongside optional offerings like dental coverage, critical illness insurance, and healthcare spending accounts. This blog gives insights into what Empire Life covers, its features and how you can process your claim.

What are the key features of Empire Life’s small business employee benefits plan?

Empire Life offers tailored coverage for companies with 2-19 employees, ensuring flexible, comprehensive protection with options for cost-sharing. Here are the key features:

Key features of Empire Life group health plan

Category Details
Minimum group size 2 employees
Maximum group size 19 employees
Minimum coverage amount $10,000
Maximum coverage amount $250,000
Business eligibility Open to Canadian businesses with at least 2 employees
Minimum participation – For plans that are 100% employer-paid or have 10 or fewer employees, all eligible employees must apply

– For larger groups, at least 85% of eligible employees must apply for coverage

Employee eligibility – Permanent employees working at least 20 hours per week are eligible for coverage on the plan’s effective date, provided they are not seasonal workers

– Employees must reside and work in Canada and be under 75 years old

Cost sharing 25% of the overall premium for participation to be valid
Waiting period Employees hired after the plan’s effective date will be eligible for coverage after completing the employer-determined waiting period
Additional provisions 6-month layoff provision for life, extended health and dental benefits, provided premiums are paid during the layoff period

Read in detail about employee benefits in canada
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Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.

What does Empire Life’s employee benefits for small businesses plan cover?

Empire Life group benefit plans include mandatory benefits like basic life and accidental death and dismemberment insurance (AD&D) and dependent life insurance. It includes optional benefits like critical illness, long-term disability, Healthcare Spending Account (HSA) and more with flexible options to meet business needs. 

Below is a comprehensive list of coverage and the details entailing for each coverage.

Sample plan design for Empire Life’s group benefits solutions

Benefit type Feature Details
Basic life insurance Coverage 1x, 2x, or 3x salary, or flat amount
Termination age 75 or prior retirement
Benefit reduction $30,000 at age 65; $15,000 at age 70
Minimum coverage $30,000 or $15,000 with Critical Illness
Dependent life insurance Amount $10,000/Spouse; $5,000/Child
Termination age 75 or prior retirement
Long-term disability Benefit period 2 years, 5 years, or until age 65
Benefit amount 60%-75% of monthly earnings
Survivor benefit None, 3 months, or 6 months
Weekly indemnity Amount 60%-75% of weekly earnings
Termination age 70 years or prior retirement
Benefit schedules Various options (e.g., 0-7-16, 14-14-15)
Extended health benefits Drugs Standard, maintenance; brand or generic options
Coinsurance 60%-100%, two-tier options available
Major medical Various coinsurance and deductible options, includes supplies
Emergency travel 100% coinsurance, $5M lifetime max, various trip durations
Vision care 70%-100% coinsurance, $100-$500 every 24 months
Paramedical services Coinsurance 70%-100%
Practitioners Chiropractor, physiotherapist, psychologist, etc.
Health Spending Accounts Incidental health expense benefit $100-$5,000 per benefit period
HSA credit allocation $100-$10,000, allocated annually or quarterly
Grace period 90 or 180 days
Dental care Deductibles $0/$0, $25/$50, or $50/$100
Coinsurance Basic 60%-100%, Major 50%
Maximum coverage Basic: $500-$5,000; Major: $500-$5,000
Orthodontics 50%, $1,000-$2,500 lifetime for 5+ employees
Group critical illness Coverage type Vital Assist, Traditional, or Enhanced CI
Coverage amount Up to $250,000
Termination age 65 or 70, depending on options

Learn more about types of Group Health Insurance Plans in Canada

How does Empire Life support small businesses with employee wellness programs?

Empire Life has a range of employee wellness initiatives such as health coaching, disability management, preventative health education, etc. Employers can choose from these offerings and customize a wellness program that will work for their organization.  Some of the key wellness offerings by Empire Life are:

▪️ Employee Assistance Programs (EAP): Counseling and referral services for personal and work-related challenges

▪️ Health coaching: Guidance on lifestyle changes for improved health

▪️ Disability management: Support for employees returning to work after illness or injury

▪️ Critical illness support: Resources for employees diagnosed with serious health conditions

▪️ Preventative health education: Workshops and sessions promoting healthy behaviours

▪️ On-site services: Initiatives like flu shot clinics and ergonomic assessments to enhance workplace health

What does Empire Life’s Employee Assistance Program cover?

Empire Life’s Assist Now Employee Assistance Program offers comprehensive support for families, key personnel, and company leaders, all within a competitive framework. It provides prompt and effective assistance whenever needed. The cost of EAP is $3.95 per employee per month, plus applicable taxes.

Program Features:

  • 24/7/365 clinical response center
  • Services available in 150 languages
  • Flexible counseling options (In-person, telephone, and e-counseling)
  • OnCallogic (Specialized cancer support)
  • Life coaching
  • Consultations (Access to financial, legal, and nutritional professionals)
  • Childcare and eldercare referral service
  • Comprehensive work-life and wellness web portal
  • Crisis and trauma support
  • Management consultation
  • EAP impact reports
Make employee health a priority

Discover affordable group benefits plans for your employees

How does Empire Life Incidental Expense Benefit different from Healthcare Spending Account?

The Empire Life Incidental Health Expense (IHE) Benefit and the Health Care Spending Account (HCSA) both help cover extra health and dental expenses not included in regular benefits plans. However, they vary in terms of coverage, employer contributions and how they are funded. 

Incidental Health Expense (IHE) Benefit

This plan gives predictable, fixed monthly costs and is fully insured. The annual limit you choose, ranging from $100 to $5,000, covers health expenses, but any unused amount doesn’t roll over to the next year. It works as a simple top-up for health coverage, and you can decide to share the cost with employees. Also, it follows your standard definition of dependents, which includes immediate family.

Health Care Spending Account (HCSA)

Health Spending Account (HSA) is more flexible. You can choose an annual amount from $100 to $10,000, and you’re in full control of the funding. This option lets you roll over unused funds, and it covers an expanded list of dependents like grandparents or nieces and nephews who rely on the employee. It can also cover employees who aren’t in the main health or dental plan.

Read more about what is health spending account and how does it works?

Who is eligible for Empire Life’s employee benefits for small businesses?

Empire Life’s employee benefits program covers permanent employees who work a minimum 20 hours per week, are 75 years of age, and reside in Canada. They also offer basic life and AD&D, critical illness and health and dental for contractual employees. Key eligibility criteria include:

Permanent employees:

  • Must work at least 20 hours per week
  • Cannot be seasonal workers
  • Must reside and work in Canada
  • Age limit: Under 75 years old

Contract employees:

  • Eligible for basic coverage including $30,000 basic life and AD&D, critical illness, extended health, and dental benefits.
  • Not eligible for weekly indemnity or long-term disability benefits.

New hires:

  • Eligible after a waiting period set by the employer (options: 1, 3, 6, or 12 months)

How does Empire Life assist in processing claims?

Claims can be submitted online through the Empire Life Group Benefits portal or by mailing physical documents. For life insurance claims under $50,000, the Express Claim option speeds up processing with minimal paperwork.

Real-time updates provide quick claim status, often leading to payments within 24 hours. Routine claims are usually processed within 5 business days, with immediate updates if more information is required.

Need insurance help?

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

What do we like about Empire Life’s employee benefits for small businesses plan?

Empire Life’s group health plans for small business, emphasizes its cost-effectiveness, innovative features, excellent customer service, and commitment to enhancing the overall user experience. 

Below are some of the benefits that we appreciate:

  • Empire Life provides cost-effective and innovative benefits that include mental health solutions such as the Mental Health Navigator and other Teladoc services at no additional cost. The 5 + 5 drug plan provides five cost and health management options along with five flexible design choices, helping businesses build customized plans that encourage wise choices.
  • The plans include built-in cost management features, which help stabilize or reduce overall expenses while maintaining robust coverage options
  •  Empire Life is known for its personal touch and commitment to customer service.
  • Empire Life’s digital connectivity streamlines benefits administration, offering real-time access and fast eClaims processing. Most payments are deposited within 24 hours.
  • Provides excellence in Disability Claims Management using innovative tools like pharmacogenomics, online therapy, Medical Confidence, and Mental Health Navigator.

How to get the best employee benefits rates from Empire Life?

To get the best group health plan rates from Empire Life, speak to one of our expert advisors who will build a plan that suits your budget and needs. Additionally, they will also help you submit your health insurance application whenever you’re ready to go ahead with the plan.

Learn more about the best group insurance companies in Canada
More choice. Lower price.
PolicyAdvisor saves you time and money when comparing Canada’s top group health insurance companies. Check it out!
GET STARTED

Frequently Asked Questions

What kind of customization options are available for Empire Life’s benefit plans?

Empire Life offers various customization options allowing businesses to tailor coverage based on specific needs. Businesses can adjust maximums, coinsurance levels, and plan designs to reflect their workforce demographics and budgetary constraints, ensuring a personalized approach to employee benefits.

How does the Empire Life group benefit plan design work?

For groups with 2 or 3 employees, at least two optional benefits must be selected (excluding the AssistNow Employee Assistance Program). The plan design offers flexibility, enabling businesses to determine their investment in each type of benefit, including coinsurance levels and maximum limits for various services.

Can employees customize their dental coverage with Empire Life?

Yes, employees can customize their dental coverage with Empire Life. They have the flexibility to allocate their overall annual maximum for dental expenses according to their preferences, allowing them to invest in various services such as orthodontics or basic coverage. This level of customization effectively addresses individual dental needs.

Need help?
Call us at 1-888-601-9980 or book time with our licensed experts.
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