Group Life Insurance in Canada

Posted on January 28, 2012 and updated January 31, 2012 in Group Benefits, Insurance Types, Life Insurance Canada News 2 min read

Group insurance policies in Canada almost always include a group life insurance component.

Even a small company can bring big benefits

The group life insurance component can be subdivided into basic life insurance, which provides the employee with the basic amount of coverage. This coverage amount can be a flat amount or a multiple of the employee’s earnings.

Generally speaking, the larger the group, the more generous the basic life insurance amounts. Optional life insurance allows the employee to take out additional life insurance on top of his or her basic life insurance coverage. This optional life insurance is subject to underwriting requirements. Optional life insurance rates can also be adjusted at the group’s renewal rate, which is often set as part of a five-year rate band.

Most group policies also provide spousal life insurance coverage.

This provides a basic amount of life insurance for the spouse and dependent children.

Group life policies end at the employee’s retirement, but many plans provide the employee with a small amount of paid-up coverage and allow the insured to convert their group coverage to an individual life insurance policy. The insurance company does build a buffer into the group pricing on Group Life Conversions, so individuals who are in good health are often better off looking into an individual life insurance policy at the time of retirement.

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

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Sergio
Sergio

I own a small business, less than 5 employees, am I required to offer health insurance? Can I offer health insurance to certain employees and not others? How am I benefited if I do offer health insurance? Sergio

LSM Insurance
LSM Insurance

Hi Sergio, You are not required to offer health insurance to your employees. Most group plans this size would want 100% participation.

The benefits to you are numerous among the keeping and attracting quality employees.