What Can be Included in Business Benefit Plans
- By Mark Bajus, CEBS
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- 01 Sep, 2017
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Benefit Plans come in all shapes and sizes. Common items include:
- Dental Coverage: cleanings, fillings, scaling, tooth extractions, root canals, gum disease treatments and more are included in a basic dental plan. Additional coverage can be added for crowns, bridges and dentures, and even further to include orthodontic treatments for children.
- Extended Health Coverage: prescription drugs, paramedical services such as chiropractors and massage therapists, medical devices like sleep apnea machines, semi-private hospital, ambulance and out of country travel coverage are all items generally covered. Vision care for glasses, contacts and eye exam costs can be added.
- Optional Insurance benefits can include Life Insurance and Income Replacement Disability Insurance, Accidental Death/Loss of Use, Dependent Life, Short Term Disability and Critical Illness.
Key components for Small Business to take advantage with employee benefit plans include:
- Affordability and Sharing – Group insurance rates are usually less expensive than comparable individual supplementary health insurance rates so analyse what savings are created when you introduce a plan. You may wish to share the costs of the play with your employees.
- Flexibility – Group Plans usually have less restrictions than individual plans on items like preexisting conditions, the addition of new family members, and restrictions based on poor health histories, are non-factors in a group insurance plan at enrolment.
- Tax Benefits – Premium dollars spent by an employer are tax-deductible for the business, and the employees (including owners!) receive the claim reimbursements tax-free. One of the only win-win scenarios in the Tax Act
Mark Bajus - CEBS, CLU, CFP - is the Director, Group Benefits for BF Partners. Learn more about Mark.
In our previous blog we talked about how we thought that Deferred Profit Sharing Plans (DPSP’s) were very underutilized by Company’s in Canada, like Rodney they don’t get no respect.
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