Cost Plus Coverage for Group Benefits

Cost Plus Coverage is a tax-efficient way to provide coverage for medical expenses that are not covered, or only partially covered, by an employee benefits plan. Adding coverage to an existing group plan for these expenses may be cost prohibitive, but covering them on a one-off basis may be more feasible.


The four main advantages of Cost Plus coverage include:

1. Covers otherwise uninsured expenses.

2. Premiums are deductible business expenses.

3. Benefits are non-taxable income for the employee-

(Not applicable in Quebec).

4. Claims paid do not effect the experience of the group.


For more details, please contact us at 1-866-899-4849, or visit our Group Benefits Online Quotes Page.

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  • Trisha
    June 3, 2013 at 1:54 pm

    How do I go about converting my group life insurance, I’m retiring soon.

    • LSM Insurance
      June 3, 2013 at 2:01 pm

      You would have to contact the insurance provider or your broker. Most companies give you an option to convert to an individual plan within 31 days of your date of termination. Since there are no medical retirements the carrier builds a buffer in the pricing.