How to Make Your Group Benefits Plan Work for You

Making the most of group insurance provided through your employer can have wide-ranging benefits for your financial, physical, and mental health.

According to a recent survey by RBC Insurance, Canadians with employee benefits through a group insurance plan experience far greater financial health and mental well-being than those without.

“Knowing that you and your family are covered through your workplace benefits if an unforeseen event were to happen can greatly enhance feelings of overall well-being,” says Andrejka Massicotte, head of group benefits at RBC Insurance. “There’s an invaluable peace of mind that comes from knowing that you can access and benefit from health and wellness supports without having to worry about how to afford that care.”

Read on to learn why group insurance through your employer is a valuable benefit and how to maximize your coverage.

Key takeaways

“Group benefits” refers to insurance that’s provided to a group of people, typically by an employer to its employees.
Your employer may cover some or all of your premium, meaning you’ll likely pay less for this type of insurance than you would for an individual plan.
Group insurance may provide a variety of coverage: life insurance, disability insurance, extended health and dental benefits, accident insurance, virtual support, and more.
If your family has access to multiple group plans, you’ll also want to coordinate coverage with your spouse or common-law partner.
If your family has access to multiple group plans, you’ll also want to coordinate coverage with your spouse or common-law partner.

What are group benefits?

Also known as “employee benefits,” “workplace benefits,” or “group insurance,” “group benefits” are insurance and well-being offerings provided to groups of people, like a company’s employees. These plans may include life, accident, disability and critical-illness insurance as well as health products and services not included in provincial health care. These services can range from dental and eye care to prescription drugs, massages, and more.

Unlike individual insurance you might purchase on your own, group insurance benefits are provided by your employer, who may pay for some or all of their cost. Group benefits are often part of a total compensation package, which might also include things like RRSP matching, paid vacation and sick days, bonuses, and stock options.

Group insurance coverage typically has lower premiums than individual coverage. The eligibility criteria also tends to be less rigid.

How do group benefits work?

For you to enjoy the perks of group benefits, your employer will have to sponsor a plan from a provider like RBC Insurance. If your employer already has a group plan when you’re hired or introduces a new one during your employment, here’s what you can expect:

The choice to opt in or out: Some plans provide the same level of coverage to all employees, while others allow selection.You may be able to choose which benefits you want to opt into or what coverage level you require.
Premium-cost-sharing: Most of the time, your employer will pay part of your premium and you will pay the rest, with the amount being deducted from your paycheque. In some instances, the employer will pay the entire premium.
The chance to review coverage periodically: You may be able to review your coverage and make changes at various points in time (for example, every year or every two years). Note that premiums on group plans are subject to change.

What do group benefits cover?

Each group insurance plan is unique, so the benefits will depend on the employer and its insurance provider. Here are some typical elements of a group plan:

Life, accident, disability, and critical-illness insurance

Your group benefits package may include coverage for you and your family members in the case of unexpected illness, disability, dismemberment, or death.

Life insurance: In the event of your death, this type of insurance provides a lump sum “death benefit” to help your family cover funeral expenses, debts, living expenses, etc.
Accidental death and dismemberment (AD&D) insurance: Not a replacement for traditional life insurance, AD&D insurance provides coverage in the case of an accident (say, a workplace incident, traffic collision, drowning, or fall) that results in death or dismemberment.
Short-term and long-term disability insurance: If you become ill or injured and cannot work for a period of time, disability insurance provides a monthly payout equal to a portion of your regular income—generally between 60 and 85 per cent—provided you meet the plan requirements.
Critical-illness insurance: If you receive a life-altering diagnosis, such as cancer, stroke, heart attack, or dementia, this insurance provides a lump sum to help cover treatments, home or lifestyle alterations, and loss of income.

Health and dental

Your group health insurance can help supplement your provincial health coverage. Your group plan may offer coverage in the following areas:

Prescription drugs
Dental care
Eye exams and eyeglasses
Paramedical services, such as massage, physiotherapy, and nutrition coaching
Mental-health services
Out-of-province or out-of-country emergency medical care or travel expenses
Health-spending accounts (to cover eligible health and dental expenses not reimbursed by the plan)
Wellness-spending accounts (to cover things like a gym membership, sports equipment, supplements, and fitness trackers)

Some of these benefits may even extend to your eligible partner and/or dependent children.

Virtual services

Your physical and mental health are priorities, but in-person medical appointments, therapy sessions, and prescription pick-ups take valuable time. (Plus, appointments can sometimes be hard to get!) Your group benefits might offer some of these virtual services so you can take care of your health quickly and easily:

Employee-assistance program for accessing short-term counselling, among other services
Virtual mental-health and wellness programs
Virtual services to help with chronic-disease management
On-demand access to doctors and specialists who can diagnose health issues, write prescriptions, order diagnostic tests, and provide referrals

How do I make the most of my employee benefits?

There are a few ways you can make your employment benefits work at maximum capacity:

Understand your coverage needs: Your group plan may offer multiple types of coverage. Learn what each type includes, and choose the benefits that work best for you and/or your partner and children. Speak to your plan administrator if you have any questions.
Know your plan maximums: You don’t want to leave money on the table, but you also don’t want to overspend if you can avoid it. Make sure you know how much money you can claim in each area: dental, eye care, paramedical services, and more. Also be aware of whether—and how frequently—these limits reset.
Keep your reset date in mind: Know when your benefits reset! If it’s once a year on January 1, make sure you submit all your eligible expenses for the year by that date. Some benefits, like eyeglasses coverage, may reset every two years.
Coordinate coverage with your partner: If you have a spouse or common-law partner, you may be able to benefit from each other’s group insurance plans. If your insurance doesn’t cover certain areas, your partner’s plan may be able to top yours up and vice versa.

You’ll be able to make the most of your employment benefits by carefully considering all your options, familiarizing yourself with your coverage, and keeping an open line of communication with your plan administrator. You’ll also be more likely to reap the rewards of physical and financial well-being.

Visit Group Benefits – RBC Insurance to learn more about RBC Insurance Group Benefits Solutions.