Get group insurance plans for your business in Canada
Compare group life insurance quotes from Canada's top providers – your best rate is only a few steps away.
let's get startedHow to get group insurance with Ratehub.ca
- Tell us about your coverage needs
Group benefits are specific to the business, so we'll need a few details to customize your plan.
- Speak with an insurance broker
We'll show you options from multiple providers, so a broker will be in touch to help you choose.
- Finalize your group policy
Secure coverage and facilitate employee enrolment – you'll be guided through the whole process.
A few things we're proud of
1,200,000
monthly users
11 years
young
Over 1M
better choices made
Trusted partner
to Canada’s top financial institutions
What are group benefits?
Matt Hands, VP, Insurance
A group benefits plan is a set of coverage and perks that employers provide to their business employees as part of a total compensation package. While these benefits are a form of non-wage compensation, they are designed to help attract and retain talent for the company, improving the overall well-being and financial security of employees.
Group insurance is a key component of group benefits. With this, individuals won't need to find coverage all on their own (and risk being denied due to certain factors, such as having a pre-existing condition). The premiums on these insurance policies also tend to be cheaper as a fundamental principle of group coverage is risk pooling – insurers set a single rate which accounts for all the employees of the business at once.
Types of group insurance benefits
One core element of a group benefits plan is insurance – here, we cover the most common types of group insurance policies offered in employment packages.
Group health insurance
Group life insurance
Group dental insurance
Group vision insurance
Group disability insurance
Group critical illness insurance
The group insurance market in Canada
According to the Canadian Life & Health Insurance Association (CHLIA), life and health insurance is sold as group and individual plans at a breakdown of 67% and 33%, respectively.
67%
of life and health insurance is sold as a group plan
33%
of life and health insurance is sold as an individual plan
Who pays the premiums for group insurance?
Here is a quick overview of a few different payment arrangements a business can use for group insurance. Keep in mind that in most cases, the premiums are shared between the employer and the employees.
How does group insurance work?
As an employer, you'll need to first select a group benefits package for your employees. This can include any of the coverage types listed above (e.g. health insurance, life insurance, dental insurance) and more. The key is to choose a plan that will keep employees happy while balancing the overall cost.
Eligible employees will then have the option to enroll in group insurance benefits. This typically happens when the employee starts working for the business. Companies may also have an annual open enrollment period where employees can sign up for new benefits, confirm their existing benefits, or make changes to their coverage.
Employees can enroll in certain benefits while declining others. They may also want to increase their coverage (e.g. on a group life insurance policy) or extend their coverage to any dependents, such as a partner or child.
While there are several different ways the group premium can be paid out (as outlined above), most companies have a share-pay system in which both the employer and the employees contribute. The share percentage should be declared ahead of time, and employees usually pay their part through a payroll deduction.
When needed, employees can then make a claim with the insurer. And while the process will differ depending on the company, necessary documentation or claim forms may be needed during the process. If approved, employees will then receive a payment or reimbursement for the insured expenses.
Other types of group benefits
Aside from insurance coverage, group packages also include non-insurance benefits. Below, we cover a few common ones that are used to improve employee well-being and promote work-life balance.
Retirement plans
This can include pensions, RRSPs, and other employer-sponsored retirement funding.
Wellness programs
This can include funding for fitness expenses and health screening to help promote a good lifestyle.
Employee assistance
These programs provide counselling services to help employees cope with work-related issues.
Flexible spending
Also known as health spending, these accounts let you set aside funds for medical expenses.
Paid time off
This includes vacation days and sick leave, so employees can take a break away from work.
Education programs
Some employers offer funding for employee education to help further professional development.
Compare group life insurance rates with us today.
Looking for group insurance? Get the coverage your business needs for the best rate on the market.
How much does group insurance cost?
For small businesses, the average benefits plan can cost about 15% of the total payroll on an annual basis. However, some providers may offer specialized plans – designed for smaller firms – with premiums costing as low as 1 to 5% of payroll. To find the exact number you'll be paying, be sure to connect with one of our licensed brokers today.
Factors that affect your group insurance rate
The cost of group insurance can vary greatly – generally speaking, the more risk you and your employees bring, the more you'll need to pay. Here are a few factors that insurers use to help determine the exact number.
- Group size
The larger your group, the more negotiating power you have. Therefore, you may be able to secure more favourable rates.
- Coverage type & level
Added coverages (e.g. critical illness, disability) lead to higher insurance rates. And increased coverage limits will also cost you more.
- Location
The cost of group insurance may differ based on your region. Operating in an area with a high cost of living can lead to increased premiums.
- Claims history
If your group policy has many claims on record, you can expect higher insurance premiums due to added risk.
- Dependents
Many group plans also have an option to cover dependents (e.g. spouse, child) – of course, these tend to cost more.
- Demographics
The demographics of the group makes a difference – for instance, if the average age is on the older end, you'll be paying higher insurance rates.
- Employee contribution
Employee contributions mean that members of the group share the premium cost – this can make the plan more affordable for employers.
- Occupation
If your group operates in a high-risk industry (e.g. farming, firefighting), you can expect insurance rates to be higher.
Ready to see your group insurance rate?
In just a few steps, we'll connect you to a licensed life insurance broker in Canada – find out how little you could be paying with us today.
Advantages of group benefits in Canada
When it comes to group insurance, there are many benefits for both the employer and the employees – here, we break down a few main ones to help you better understand the coverage as a whole.
Affordability – Group insurance plans tend to be more affordable than individual ones as the risk is spread among all the members.
Comprehensive coverage – A benefits plan allows employees to obtain coverage for all different needs (e.g. health, life, dental) at once, instead of having to purchase separate policies.
No medical underwriting – Group insurance policies typically don't ask for a medical exam. This is ideal for those with pre-exisitng conditions who may not otherwise qualify for regular policies.
Family coverage – Employees typically have the option to add their dependents onto the group insurance plan, ensuring that family members are also covered financially for health, dental, and vision needs.