Unique coverage for individual needs

Most would agree that basic death, disability and retirement benefits serve the organization as a method of providing transition out of active employment. The employer should specify the minimum level they believe adequate to meet their objectives. Additional coverage can be made available to employees through payroll deductions or flex credits.

A number of plan design strategies are available.

• Modular plans gives employees a choice among a few plans designed to meet common needs. One option may emphasize health and dental coverage, while another maximizes retirement savings.
• Core plus options specify minimum amounts of coverage and let employees use the remaining flex credits for enhancements.
• Health Spending Accounts can be a component of the above or provide flexibility to health and dental benefits without affecting other benefits. The employer makes a monthly contribution to each employee’s spending account and lets each employee choose what products and services are important enough to purchase with the limited resources. Any medical or dental expense that is permissible by the Income Tax Act may be claimed. The most common claims are prescribed drugs, dental, vision, massage therapy, other paramedical services and even the cost of private insurance such as out-of-country or semi-private hospital expenses. At the end of the calendar year, members carry-forward either the unused deposits or the unclaimed expenses for one additional year.

The simplest flex plan provides compulsory long-term disability coverage and lets employees choosing the funding level of their retirement plan (RRSP) and health spending account.

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