Group insurance: Association Versus Broker Sold Plans

Posted on January 13, 2013 and updated March 21, 2018 in Group Benefits, Insurance Types, Life Insurance Canada News 2 min read

 If you’re a member of a professional association, chances are you’ve been approached about group health and dental coverage. This coverage can be a good deal for some businesses, but it comes with limitations:

1. Since most plans are sold directly through the association, there is no personal contact. Any service-related issues are dealt with through a call centre. On the other hand, broker-sold plans allow for a more personal response to service-related issues.

2. Association-sold plans usually come with preselected benefit options, but broker-sold plans can be customized to the specific benefit needs of your business.

3. Broker-based plans can come with an initial rate guarantee of up to 16 months, but most association plans have a maximum rate guarantee of 12 months.

4. Association group plans do not allow for negotiation, but broker-based plans can allow the broker to negotiate your premium on your behalf.

5. Association plans require the business owner or professional to be a member for their company to qualify for a group plan, but a broker-based plan does not require any type of membership. In addition, such membership fees can range from free to a $1,000 or more a year.

If you have any questions about further differences between association-based and broker-based group insurance plans, please do not hesitate to contact us at 1-866-899-4849 or visit our Group Insurance Quote Page.

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T Drist
T Drist

Can you quote me me on a group insurance plan for me and my wife. She is diabertic

LSM Insurance
LSM Insurance

Thanks for the note. The premiums will depend on the type of benefits you are after. We will send you a separate email now.

Ted R
Ted R

I’m a 52 Engineer looking for Term Life Coverage. My current plan just renewed at a lot higher rate. How long a term can I get.

LSM Insurance
LSM Insurance

Hi Ted, You could qualify for a Term 100 level rates to age 100 or a Term 30 – level rates for 30 years.