Group Insurance: Factors to Consider at Renewal Time

When considering the renewal of your company’s group insurance plan, there are several factors of which you need to make the group insurance carrier aware:

1. Salary updates - If any of your employees had any significant changes in salary, this information needs to be communicated to the insurance carrier.

Most short-term and long-term disability plans are based on the employee’s income, and some group life insurance plans are also impacted by the employee’s income.

2. Non-medical maximums - Non-medical maximums allow the employee to obtain a certain amount of life or disability insurance without a medical exam. The larger the group, the higher these maximums. Therefore, if the group is increasing in size, it’s a good time to investigate the possibility of higher non-medical maximums.

3. Participation rates – You should notify the insurance carrier of any new employees. Keep in mind that workers who put in a minimum of 20 hours a week should be included in the group plan as an employee.

4. Beneficiary updates – Renewal time is a good opportunity to make sure employees have the appropriate beneficiary designations on all of their group life and dependent life coverage.

5. Employee lifestyle changes - Employees who have had lifestyle changes, such as the birth of a child or marriage, usually have the opportunity to add coverage within a 30-day period.

For more details on group benefit insurance in Canada, please contact us at 1-866-899-4849 or visit our Group Benefits Online Quote Page.

Most recent articles

Your email address will not be published. Required fields are marked *